Tag: Dynamics

The Bitcoin Mempool: Relay Network Dynamics

coiner

In the last Mempool article, I went over the different kinds of relay policy filters, why they exist, and the incentives that ultimately decide how effective each class of filter is at preventing the confirmation of different classes of transactions. In this piece I’ll be looking at the dynamics of the relay network when some nodes on the network are running different relay policies compared to other nodes.  All else being equal, when nodes on the network are running homogenous relay policies in their mempools, all transactions should propagate across…

Read More

XRP flips Ether’s FDV amid change in market dynamics

coiner

XRP’s fully diluted valuation (FDV) has surpassed Ether (ETH), according to March 14 data from CoinGecko.  The FDV flip signifies a reversal of fortune for both layer-1 (L1) blockchain networks behind the tokens, as XRP Ledger’s decentralized finance (DeFi) ecosystem gains traction and Ethereum grapples with competition from rival L1s, such as Solana. As of March 14, XRP’s FDV stood at nearly $235 billion, more than $1 billion higher than Ether’s, according to CoinGecko. Ether’s market capitalization still leads at $233 billion versus XRP’s $136 billion, the data shows.  FDV…

Read More

Bitcoin Blockspace: Dynamics of System Resource Use

coiner

Competition for blockspace is and always will be one of the core tensions that exist between different users of the Bitcoin protocol. At the end of the day there are only two restrictions on how it will be used, the technical and consensus layer of what is actually possible or allowed by the protocol, and the economic layer of what people are willing to pay to make use of blockspace to different ends. This is a fundamental and inescapable reality of how the network works. It is a purely market…

Read More