An Onchain Implementation Of Mining Feerate Futures

An Onchain Implementation Of Mining Feerate Futures

Original Postby harding

Posted on: February 22, 2024 23:25 UTC

In the discussion about cryptocurrency mining, an interesting point was made regarding the effectiveness of normal miners compared to those with significantly more hash power.

It was noted that when the rewards from mining are adjusted for the hash power contributed, normal miners actually achieve a higher proportional payoff. This observation is backed by a mathematical analysis, which has been verified and shared in a Gist. The verification of the math involved confirms the initial claim that, denoted by $a > a_1$, normal miners receive a greater return on their investment when considering the hash power ratio. This correction serves not only to clarify previous misunderstandings but also to highlight the efficiency and potential profitability for individual miners within the cryptocurrency ecosystem.