[BUG]: spammers get Bitcoin blockspace at discounted price. Let's fix it

[BUG]: spammers get Bitcoin blockspace at discounted price. Let's fix it

Original Postby ProofOfKeags

Posted on: January 9, 2024 18:12 UTC

The ongoing debate about blockspace pricing for simple transactions is rooted in the misconception of discriminatory pricing against such transactions.

The critique hinges on the erroneous belief that simpler transactions should inherently command a lower price due to their perceived 'virtue'. However, this fails to recognize the distinct costs associated with witness bytes as opposed to main transaction bytes within the network's operations.

According to insights from the developer @sipa, addressing the perceived inequity by altering the witness discount would have unintended consequences. Specifically, it would lead to an increased consumption of weight units for more complex transactions. This alteration would only be beneficial if the demand for these heavier transactions dropped by more than half, which would then potentially leave enough blockspace for additional simple transactions.

This situation is not indicative of a flaw within the system but rather an intentional pricing strategy. The rationale behind the cheaper pricing of witness bytes lies in the fact that validators incur higher expenses when processing main transaction bytes. Therefore, any suggestion to drastically revamp this economic model is viewed not just as punitive but potentially harmful to the network's functionality. The current pricing model reflects the operational realities of transaction validation and the inherent costs associated with different types of data processed by the network.