Derek Ross on nostr

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@Derek Ross 1676486571

Ordinal Inscribers are now paying Bitcoin mining pools to construct blocks for them with zero or minimal financial transactions, so that all of their images get inscribed in sequential order. They are not using the normal block construction methods. They are including these in the next block over the counter or behind closed doors. This has happened 3 times so far with 3 different pools. Luxor, Foundry, and the latest one was from Terra Pool. These out of band blocks are creating a secondary marketplace outside of Bitcoin's normal block construction methods. Miners are now talking about selling blocks before they are found. Thoughts?

8730❤️42🤙29

they are hijacking the blockchain bloating it with jpegs. The size of the blockchain is important so everybody can download it and keep their own node. the creation of financial transactions are the main goal of the blockchain. if they want an nft just go and mint it in other altcoin blockchain. giv...

cloud fodder · 163w

Miners gonna mine. Pools gonna pool. There are only 21 million.

Bitcoin Bull · 163w

I hope this doesn’t go wrong at later stage when hype vanishes 👀

ThatJoeYouKnow · 163w

Mempool price discovery is going to be fascinating to watch

thewall · 163w

This has always been possible, and I’m sure has occurred on a smaller scale. I don’t think it’s a big deal.

Clyde The Dog · 163w

Kinda crazy; but I feel pretty confident that the incentives will work themselves out with all this…

jay beddict · 163w

to be clear, foundry does not offer any such service at this time. pay market fee and you get included in the block

someone · 163w

IMO miners will get richer. May invest in more mining equipment. Difficulty increase means harder bitcoin. I see this as fiat injection to bitcoin economy. The inscribers could also do regular meaningless bitcoin transactions with high fees to stop plebs. This is similar I think. While the inscr...

Miners need to punish these pools by leaving them in mass.

This is one of the reason why we need more decentralization in mining pool operators..

mchotbot · 163w

Your post is getting a lot of shares. Added to the https://member.cash/hot feed

₿anana for scale · 163w

#[1] , wouldn't it be cheaper to pay very high transaction fees to ensure same outcome? fee market supposed to provide same service, but globally, non? or is there design flaw that i'm missing ?

The miners are accepting these out of band payments because they are bringing in more fees then on chain transactions. If pools do not share those OOB fees to miners, miners will eventually catch on and move pools. As real financial transactions start to increase on chain, people will be willing t...

So that means that btc txs will be executed in parallel? It will be like 2 blockchains in one?

This is a problem, are they sharing these side deals with the hash providers 🤔 those pointing there hash power towards these pools are IMO getting screwed here, they should be incentivised to move to an honest pool

My concern is that this shows a path to a DOS: Contract with multiple miners to prioritize a large number of such blocks during a period of price runups/crashes and the frantic high volume of txns.

Liberty Farmer · 163w

I'm not sure how they can constrict a block ahead of time that they may not win?

what are the implications?

Kis Sean · 163w

if so, someone should start to boycott those pools !😰

IMF_SUCKS · 163w

Miners are paid for doing their job. It is the same if they are paid the usual way (by tx fees) or directly. Not diference at the end of the day

Keysa - Simplest Bitcoin Edu · 163w

The way to "quote post" in nostr (on Damus) is to long-press the post and then click 'Copy Note ID', then type your post, as I am doing here, then type @ and immediately following paste what you copied, and it will come out like this. That way, in this example, ppl can see thenOP was by #[2] #[3]

Marco Aurelio De Cunha · 162w

Beautiful free market.. natural order., tied to its own natural evolution.

gsovereignty · 162w

Bitcoin is fundamentally a market for block space, and out of band deals are part of that market. It isn't a new phenonema, I remember people complaining about this as far back as 2011. The mempool is the most popular mechanism to bid for block space, but the market routinely experiments with othe...