Transaction

j"1LAnZuoQdcKCkpDBKQMCgziGMoPC4VQUckMV<div class="post"><div class="quoteheader"><a href="https://bitcointalk.org/index.php?topic=532.msg6194#msg6194">Quote from: bytemaster on July 28, 2010, 02:10:53 PM</a></div><div class="quote">expecting individuals to "donate time" or make a profit in "bit coin mining" is to arbitrary and leaves little room for innovation.&nbsp; <br/>...<br/><br/>Effectively, if you want to post a transaction there must be a fee awarded to the individual who gets it posted in a block...<br/></div><br/>I used to have similar thoughts, but I decided I was wrong. It turns out that BitCoin is peer to peer in the sense that tier-1 internet providers are peer to peer. It is not P2P in the same sense that bittorrent is P2P.<br/><br/>Satoshi points out that he sees the NEED for at most 100,000 nodes verifying transactions and logging blocks. Others would use those nodes in a more client/service fashion. If I was guessing that number I would put it much lower (3&lt;X&lt;100) independent interested parties. Anyone can choose to be one of those X parties, or can choose to validate some or all of the work of those X parties, but only a small number are really REQUIRED.<br/><br/>Because in effect, the entire block list is mostly a distributed notary service. And though that requires rigor, it is not a particularly hard job.<br/><br/>So who would choose to do that job for free?<br/><br/>Knightmb for one. I'm have no doubt that many others like NewLibertyStandard will as well. Why Knightmb specifically? Well he has lots of coins and his business model and personal wealth relies on a well functioning honest system. Without that, his wealth and business simply evaporate. It is altruism and cooperation though self interest.<br/><br/>If you want a real world example consider the internet itself. At its amorphous core are about 7 tier-1 service providers. They are called tier-1 only because each has a mutually self interested "peering agreement" with the other six providers. That means these huge services providers move phenomenal amounts of date back and forth with zero accounting and zero payments among each other. They make all their money by selling their service to NON-tier-1 providers who make their money from selling it to you.<br/><br/>There is nothing to stop anyone from becoming a tier-1 provider. All you have to do is convince the others that it is in their self interest to peer with you. So for a example, Google is thought to pay zero in bandwidth to transmit youtube videos. There is enough traffic both ways, that it is in everyones self-interest to peer with them.<br/><br/>I expect that the same will happen with BitCoin. All the internal accounting and transfers will be free. (with the exclusion of transaction fees meant to avoid spam and mischief). Value will be created at the edges where people exchange bitcoins for something else of value.<br/><br/><br/><br/><br/></div> text/html