1/Concerning the security sustainability and monetary policies of $BTC vs $ETH... we need to talk about this.
The most important factor determining crypto sustainability is the total mining reward revenue (transaction fees). This is what finances the security of cryptos.
The most important factor determining crypto sustainability is the total mining reward revenue (transaction fees). This is what finances the security of cryptos.
2/The higher the transaction fee revenue is, the more secure the network becomes.
Another important factor determining the security of a system is how the budget is spent. Efficiency yields more security per amount of resources spent. The more efficient a system is, the more
Another important factor determining the security of a system is how the budget is spent. Efficiency yields more security per amount of resources spent. The more efficient a system is, the more
3/secure it becomes.
This is where monetary policy comes in. Issuance is only needed if the network's security would be deemed insufficient without it (aka not enough transaction fees). This is why issuance is effectively a subsidy. It is also why the purpose of monetary policy
This is where monetary policy comes in. Issuance is only needed if the network's security would be deemed insufficient without it (aka not enough transaction fees). This is why issuance is effectively a subsidy. It is also why the purpose of monetary policy
4/is to secure the network, but not the other way around.
What truly secures monetary policy is
not the code, it is people. In the end, the users are the ones who decide to maintain or make changes to monetary policy. Such modification could be deployed along with any
What truly secures monetary policy is
not the code, it is people. In the end, the users are the ones who decide to maintain or make changes to monetary policy. Such modification could be deployed along with any
5/other protocol update.
Remember: if "code is law", then the entirety of the law is embodied in the current version of clients and validators, but this changes the second an update is deployed.
#Ethereum figured out how to automate adjustments to the subsidy system to
Remember: if "code is law", then the entirety of the law is embodied in the current version of clients and validators, but this changes the second an update is deployed.
#Ethereum figured out how to automate adjustments to the subsidy system to
6/always meet the minimum desired security. This is EIP-1559, and it can effectively result in negative issuance. The main variable determining this mechanism is transaction fees (exactly as it should be).
The service layer of each protocol is ultimately responsible for
The service layer of each protocol is ultimately responsible for
7/generating the revenue needed to secure the network. This is why "utility" in the form of versatility and scalability is so important. Therefore, the commonly criticized "extra complexity" of Ethereum is precisely what will
8/ensure the sustainability of a non-inflationary (likely deflationary) monetary system. It is also what will help to drive demand for $ETH beyond the speculative nature of $BTC.
9/This is the stuff needed to become a monetary asset that can function as a global currency. This is why ether is ultra sound money.
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