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Emergence

The document discusses how miners in the Bitcoin network are incentivized to create a "small world network" topology. Miners who are more densely connected to other miners will have their blocks propagated faster, reducing the chances of those blocks becoming "orphaned" and missing out on the block reward. This desire to maximize profits drives miners to interconnect densely, creating an efficient network with high security and low distances between nodes. The network's structure provides security and stability while maintaining a consistent block mining rate of 144 blocks per day.

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Joel Dalais
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206 views2 pages

Emergence

The document discusses how miners in the Bitcoin network are incentivized to create a "small world network" topology. Miners who are more densely connected to other miners will have their blocks propagated faster, reducing the chances of those blocks becoming "orphaned" and missing out on the block reward. This desire to maximize profits drives miners to interconnect densely, creating an efficient network with high security and low distances between nodes. The network's structure provides security and stability while maintaining a consistent block mining rate of 144 blocks per day.

Uploaded by

Joel Dalais
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PDF, TXT or read online on Scribd
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Emergence

Bitcoin – ELI5

Emergence into a small world network

1. More orphans = less perceived profit.


2. Less orphans = more perceived profit.

1 & 2 are the same from different perspectives. The reality is that the gain is an unrealised gain, and
not actually a loss at all.

3. To have less orphans a miner needs to be more densely connected to other miners so that
their propagated block does not get orphaned and then at a later point after it has been
accepted by the majority they will get the block reward.

3a. After 100 confs/blocks it becomes a realized gain (liquid/tangible).

4. A more densely connected miner vs a miner who has halve as many connections to other
miners will have a strong advantage, milliseconds count.

5. This desire (human greed) for more profit drives mining nodes to densely interconnect
creating the small world network.

6. This network provides the best known security with an extreme minimum of distance (hops).

7. There are currently 144 blocks mined per day, this rate does not change due to orphan loss.

Bitcoin Block Reward Halving Countdown


https://www.bitcoinblockhalf.com/

On Bitcoin and Red Balloons


https://www.microsoft.com/en-us/research/publication/on-bitcoin-and-red-balloons/

Small World Network


https://imgur.com/a/PaGAv3D
credit: Devar

Chaos > Order > Bitcoin

Authors: Human Observers

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