If you're talking about double spending your bitcoin, I don't think so. I'm still learning how it works, but I believe that your second (or third or fourth) transaction using the same "coins" would fail once the first transaction was confirmed. I'll readily admit that I may be misunderstanding your question and that I also have it wrong regardless. Great question, however.
Transaction fees. Right now bitcoin miners are paid via a combination of new bitcoins and transaction fees. Once it hits the 21 million mark, they’ll be paid solely via transaction fees.
If 51% of the nodes are unreachable the transaction will be denied? If it is a majority of the reachable nodes then it becomes much easier to hack. Three reachable nodes, two of them are compromised. Of course there are middle grounds where it is a majority of reachable nodes over a large number like 1000, but that's still dependent on not having network issues.
Yes, I understand that the 'conventional' banking system requires a functional network too but it's on the banks' shoulders and they have incentive to make it work for the risk is almost if not entirely theirs.
First thought: Can I arbitrage the block update lag?
ReplyDeleteIf you're talking about double spending your bitcoin, I don't think so. I'm still learning how it works, but I believe that your second (or third or fourth) transaction using the same "coins" would fail once the first transaction was confirmed. I'll readily admit that I may be misunderstanding your question and that I also have it wrong regardless. Great question, however.
ReplyDeleteSo why is there a limit to the number of bitcoins that can be mined? Once we hit that limit, what incentive do miners have facilitate transactions?
ReplyDeleteGood question. I wonder that too.
DeleteTransaction fees. Right now bitcoin miners are paid via a combination of new bitcoins and transaction fees. Once it hits the 21 million mark, they’ll be paid solely via transaction fees.
DeleteIf 51% of the nodes are unreachable the transaction will be denied? If it is a majority of the reachable nodes then it becomes much easier to hack. Three reachable nodes, two of them are compromised. Of course there are middle grounds where it is a majority of reachable nodes over a large number like 1000, but that's still dependent on not having network issues.
ReplyDeleteYes, I understand that the 'conventional' banking system requires a functional network too but it's on the banks' shoulders and they have incentive to make it work for the risk is almost if not entirely theirs.