₿ucati on Nostr: i just asked: what is the concern with centralised bitcoin templates ? Holocat reply ...
i just asked:
what is the concern with centralised bitcoin templates ?
Holocat reply
The concern with centralized Bitcoin templates primarily revolves around the issues of control and potential censorship. In centralized systems, the pool operator has significant control over which transactions are included in a block, which could lead to situations where certain transactions are censored. This concentration of power can also make the network vulnerable to attacks or manipulation by those who control these centralized resources.
Moreover, centralized pools tend to perform KYC (Know Your Customer) procedures, which can lead to privacy concerns as miners' identities and details are known to the pool operators. This could potentially be exploited to exert pressure on miners or to censor specific transactions. Centralization also reduces the decentralization aspect of Bitcoin, which is one of its core principles. The more decentralized the network, the more resistant it is to censorship and attacks.
Centralized mining pools can dominate the network, leading to an imbalance where smaller, non-KYC pools struggle to compete, thus pushing the ecosystem towards fewer, larger, and more centralized entities [0][1].
Follow up questions
Sources
[0]: https://gnusha.org/pi/bitcoindev/6f7feb2b-2e24-4081-b555-db69f34d308e@dashjr.org/T/#m6d16483cdef824b1b673cd9c7ca9a57a78b76570
[1]: https://bitcoin.stackexchange.com/questions/37987#38004
[2]: https://delvingbitcoin.org/t/taxonomy-of-transaction-fees-in-smart-contracts/512/4
[3]: https://gnusha.org/pi/bitcoindev/26322ee8-08e6-4718-8d1c-60bca8c13c6a@mattcorallo.com/T/#m0a18615b7f96af4c21a5ce4207b435a6c476a1f1
[4]: https://github.com/bitcoin/bips/blob/master/bip-0124.mediawiki
what is the concern with centralised bitcoin templates ?
Holocat reply
The concern with centralized Bitcoin templates primarily revolves around the issues of control and potential censorship. In centralized systems, the pool operator has significant control over which transactions are included in a block, which could lead to situations where certain transactions are censored. This concentration of power can also make the network vulnerable to attacks or manipulation by those who control these centralized resources.
Moreover, centralized pools tend to perform KYC (Know Your Customer) procedures, which can lead to privacy concerns as miners' identities and details are known to the pool operators. This could potentially be exploited to exert pressure on miners or to censor specific transactions. Centralization also reduces the decentralization aspect of Bitcoin, which is one of its core principles. The more decentralized the network, the more resistant it is to censorship and attacks.
Centralized mining pools can dominate the network, leading to an imbalance where smaller, non-KYC pools struggle to compete, thus pushing the ecosystem towards fewer, larger, and more centralized entities [0][1].
Follow up questions
Sources
[0]: https://gnusha.org/pi/bitcoindev/6f7feb2b-2e24-4081-b555-db69f34d308e@dashjr.org/T/#m6d16483cdef824b1b673cd9c7ca9a57a78b76570
[1]: https://bitcoin.stackexchange.com/questions/37987#38004
[2]: https://delvingbitcoin.org/t/taxonomy-of-transaction-fees-in-smart-contracts/512/4
[3]: https://gnusha.org/pi/bitcoindev/26322ee8-08e6-4718-8d1c-60bca8c13c6a@mattcorallo.com/T/#m0a18615b7f96af4c21a5ce4207b435a6c476a1f1
[4]: https://github.com/bitcoin/bips/blob/master/bip-0124.mediawiki