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Messages - jgorham

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General Discussion / Re: Lucky Mining Request for Proposals
« on: November 27, 2013, 04:56:21 am »
Is it possible to create variable block rewards? People choose pools because they want to reduce variance, and the variance comes from one miner getting 100% of block rewards. Could a coin be designed that awarded, say, 10C to the miner who creates the block, and a proportional share of an additional 10C to all miners on the network based on hash speed?

If so the coin would effectively create a pool with 0 fees which is an attractive alternative.

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General Discussion / Re: Lucky Mining Request for Proposals
« on: November 26, 2013, 07:05:49 pm »
I think you are overestimating the appeal of a large win with a near zero chance of success. With the current price of Bitcoin, finding a block solo is worth about $20k but is extremely difficult. Miners aren't leaving pools to solo mine even though solo mining is very much a lottery at this point. Gamblers are willing to sacrifice some EV in order to achieve a sure return.

Now if solo mining offered a higher EV than pooled mining more people would take the chance, even if in practice it was very boom or bust. Offering 900x rewards at 1000x difficulty creates a situation where the EV is lower than in a mining pool, as well as creating a situation where most of the time the miner will see 0 return for their investment.

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