Miners on the Bitcoin Cash network appear to be preparing a plan to finance the protocol’s development using their own block rewards. The controversial plan would see 12.5 percent of the total BCH coinbase go towards those building on the network.
Those behind the plan say that it is impossible for developers to work without financing. They reason that existing solutions to the problem present their own problems.
Bitcoin Cash Miners to Trial Rewards Programme
According to a Medium post by the CEO of the mining pool BTC.Top, development of cryptocurrency protocols are often underfunded. Jiang Zhuoer and other leading mining pool operators are proposing a scheme by which miners themselves will pay developers. Zhuoer himself describes the topic as “controversial”.
The CEO writes that other efforts to fund cryptocurrency development as flawed. Previously, developers have had to appeal for corporate sponsorship. This, for Zhuoer, is problematic since it limits the work to areas that the sponsor deems pleasing. There is also a problem with too few companies offering to pay for protocol whilst too many want to benefit from it without contributing towards its financing.
The post details how the some of the most prominent known Bitcoin Cash miners have come together to launch a six month donation plan. The initiative will reportedly see 12.5 percent of the coinbase of each block go towards infrastructure development. To facilitate this, the post mentions a Hong Kong-based corporation. It will reportedly accept and disperse the BCH generated.
Most controversially of all, the post details that miners following the plan will orphan those blocks that do not include the 12.5 percent developer donation. This means they will be rejected by the chain. Zhuoer writes:
“To ensure participation and include subsidization from the whole pool of SHA-256 mining, miners will orphan BCH blocks that do not follow the plan. This is needed to avoid a tragedy of the commons.”
The post is signed by Jiang Zhuoer of BTC.Top, Jihan Wu of Antpool and BTC.com, Haipo Yang of ViaBTC, and Roger Ver of Bitcoin.com. The plan is intended to go into action on May 15 and run for six months, until November 15.
Almost Sounds… Centralised?
Despite not being a protocol change, the ease with which major Bitcoin Cash miners are coming together to enforce such a controversial policy on the network should be cause for concern for those with an interest in the network’s future. If the equivalent of a miner tax can be levied against BCH miners at such sudden notice, what other changes could be made in the future?
Some cryptocurrency industry observers have been quick to criticise the planned developer fund. Bitcoin proponent WhalePanda comments that the level of centralisation such a plan requires equates those behind it to a “totalitarian regime”. WhalePanda adds that Bitcoin Cash is likely vulnerable to 51 percent attack should miners be prepared to collude in such a way again.
$BCH implementing a 12.5% miner's tax is hilarious and anyone not donating will have their blocks orphaned.Literally a centralized totalitarian regime with a 51% attack threat."A Hong Kong corporation has been set up to legally accept and disperse funds"https://t.co/UsDIv2yEl4
— WhalePanda (@WhalePanda) January 22, 2020
Related Reading: Who’s Accumulating Bitcoin? 784,000 Addresses Now Hold 1+BTC
Featured Image from Shutterstock. The post appeared first on NewsBTC. origin »
Key Takeaways: Tether’s USDT stablecoin is integrated with the Bitcoin Lightning Network, which would facilitate faster transactions. The Taproot Assets protocol is used to connect with this combination, which increases
The post Tether Brings USDT to Bitcoin’s Lightning Network: Faster & Cheaper Bitcoin Payment appeared first on CryptoNinjas.
The Bitcoin Lightning Network has seen a sharp drop in key metrics amid declined usage.
However, BTC payments continued to gain popularity after the recent endorsement by Trump and the State The post Bitcoin Lightning Network growth slows down - What's happening? appeared first on AMBCrypto.
Fractal Bitcoin launches mainnet, leverages Bitcoin Core code for enhanced scaling. The network offers sub-30-second block confirmations and a 20x capacity increase. The network’s native token, FB, supports proof-of-work mining, with half pre-mined for allocations.
The Bitcoin network hashrate hit a new all-time high of 746 EH/s on September 3rd, showcasing improved security and fundamentals. This comes as Bitcoin prices decline, underscoring the disconnect between short-term pricing and long-term network health.
Coinbase's integration of the Bitcoin Lightning Network marks a major advancement in reducing costs and transaction times, offering immediate, economical BTC payments.
The post Coinbase Successfully Integrates Bitcoin Lightning Network appeared first on BeInCrypto.
Stacks (STX) is an NFT ecosystem that utilizes the best of two worlds; it’s secured by the Bitcoin network while also on Bitcoin which leverages the scalability of the Ethereum network. Bored Ape or pixelated Punk, there’s no denying the NFT movement & market roared to life in 2021.
The last week has seen increased activity on the Bitcoin network.
This has resulted in a 61% uptick in total fees during that period.
The Bitcoin [BTC] network experienced a surge in activitThe post Bitcoin: What rising network activity means for BTC's price prediction appeared first on AMBCrypto.
Stacks (STX) is an NFT ecosystem that utilizes the best of two worlds; it’s secured by the Bitcoin network while also on Bitcoin which leverages the scalability of the Ethereum network. Bored Ape or pixelated Punk, there’s no denying the NFT movement & market roared to life in 2021.
Bitcoin’s Lightning Network was designed to make Bitcoin transactions faster and cheaper. But according to a recent discovery by a now former Lightning developer Antoine Riard, there’s a major security flaw in the network that puts users’ funds at risk.
David Marcus, former PayPal president, aims to transform Bitcoin into a global payment network through his company Lightspark, which focuses on Bitcoin Lightning Network infrastructure.
The post Former PayPal President Wants to Turn Bitcoin Into Global Payment Network appeared first on BeInCrypto.
In the Twitter exchange between the two industry leaders, Armstrong clarified that he is not ignoring the Bitcoin Lightning Network. He noted, "We've onboarded more people to Bitcoin than probably any company in the world.
Binance has integrated the Bitcoin Lightning Network, enabling faster and cheaper Bitcoin transactions. The move follows a surge in Bitcoin network activity and high transaction fees earlier this year.
On July 6, Bitcoin Lightning Network development firm Lightning Labs introduced a new toolkit that enables artificial intelligence (AI) applications to interact with the Bitcoin network through its layer-2 solution
Bitcoin revenue jumped 249% YoY in May, while Ethereum network fees rose 53. 7% in May, according to a research report by the ETC Group. Ordinals and enterprise adoption drove network revenues for Bitcoin and Ethereum respectively.
The Bitcoin network faces a brand new crossroads. Congestion on the network caused by the popularity of the Ordinals protocol is pushing Bitcoin to its limit. Brave New Coin speaks with member of a team building a scalable, cross-chain but not bridged version of Bitcoin called Chain-Key Bitcoin (ckBTC).
Since last week, the Bitcoin network has remained congested with more than 420,000 unconfirmed transactions, raising suspicions of a possible malicious attack. According to several developers and cryptocurrency community enthusiasts, the Bitcoin network is being attacked by persons who are willing to lose millions of dollars to render the network unusable. Bitcoin community expresses concern […]
Binance Resumes Bitcoin Withdrawals Following Second Brief Suspension; Adjusts Fees and Integrates Lightning Network In response to the Bitcoin network experiencing unprecedented congestion, Binance has once again lifted the temporary suspension on bitcoin (BTC) withdrawals.
On 1 May, 60% of all transactions on Bitcoin used Taproot, hitting an all-time high.
Bitcoin network also recorded $3.5 million in transaction fees, reaching a 2-year high.
The bull market oThe post Decoding the not so obvious reason behind Bitcoin [BTC] logging heavy network traffic appeared first on AMBCrypto.
High activity was observed on the Bitcoin network.
Retail investors remained hopeful as traders go long.
According to newly available data, the activity on Bitcoin [BTC] network has surged.
The bitcoin maximalist, executive chairman of MicroStrategy, and recently alleged tax evader says that the Bitcoin network’s output is 100 times greater in cost than its input.
While Bitcoin miners continue to pursue the last 2 million BTC into circulation, the overall network is well-positioned to attain greater resilience against vulnerabilities.
Bitcoin might be the coin that defined the crypto industry as we know it today, but the Bitcoin Lightning Network could be the solution that brings Bitcoin micro-payments to those outside the crypto sThe post BTC Lightning Network April 2022 stat invokes the aid of bulls appeared first on AMBCrypto.
At the Bitcoin 2022 conference in Miami, the Bitcoin Lightning Network seems to be getting closer to mass adoption as large companies start to partner with Strike. The digital payments platform built on the BTC network announced that it will integrate with Shopify and partner with payment firm Blackhawk and NCR, the world’s largest point-of-sale […]
Bitcoin’s recent price performance might not encourage investors, but that has not stopped them from pushing the TVL of assets locked on the Lightning network to a new high.
The post Bitcoin’s TVL on Lightning Network now worth over $130 million appeared first on CryptoSlate.
With the expanding adoption of Bitcoin and most recently, the Taproot upgrade which brings smart contract capabilities, secure and efficient transactions to the network, there is no doubt that most investors are bullish on the most successful cryptocurrency.
The rise of The Lightning Network is one of the most important stories of the year. On its back, El Salvador could adopt Bitcoin as legal tender. Bitcoin Beach’s implementation of The Lightning Network served as a use case that showed that it could be relied on.
The new framework for authenticating online identities was launched on the Bitcoin mainnet on Monday. A layer 2 technology, DID is similar to Bitcoin’s scaling solution Lightning network with the exception that instead of payments, it uses the largest blockchain to create digital IDs.
Bitcoin development firm Blockstream is building a new DeFi product that facilitates securities trading on the Bitcoin network, announced WSB founder Jaime Rogozinski in an event yesterday.
The post WallStreetBets dApp to launch retail funds on Bitcoin’s Liquid Network appeared first on CryptoSlate.
The last few months have seen the exponential growth of not just Bitcoin, but also the Lightning Network (LN). In fact, over the said timeframe, it has seen a significant expansion of both its paymentThe post Bitcoin Lightning Network: Why 'apples to oranges' comparisons don't do it any good appeared first on AMBCrypto.
Over 3,000 Bitcoin are now hosted on the Lightning Network, a sidechain that enables faster and low-fee payments for Bitcoin holders, data from tracking tool TXStats shows.
The post The Lightning Network’s capacity just crossed 3,000 Bitcoin (BTC) appeared first on CryptoSlate.
Bitcoin has become so popular that it is now facing network congestion, causing slowed and expensive transactions. The founder of Bitcoin, Satoshi Nakamoto, aimed Bitcoin to be a decentralized payment alternative but did not design the architecture to withstand such high demand.
Bitcoin could possibly be at one of the most important moments in its history. The mining sector located in China was forced to migrate due to new regulations. These entities are responsible for protecting the network and their actions can be felt throughout the entire crypto industry.