Ethereum: Understanding the encouragement of Bitcoin knot operators
Blockchain Ethereum is based on the basic Bitcoin network, and many knot operators were based on Bitcoins as the main currency to promote their knots. But do these people really encourage knots or is it a more complex problem? This article deals with the Bitcoin transaction’s economy and examines whether knot operators can use the nodes.
Background
Ethereum is an open source blockchain platform with which programmer can create decentralized applications (DAPPS). In 2015, Vitalik Buterin Ethereum created cryptocurrency (ever), but later switched to consensus salgorithm.
Bitcoin transactions fees
In order to start the nodes on Bitcoin, Walidacze must be encouraged to take part in the network by transaction fees. These fees are paid to people who solve complex mathematical problems or “extract” new bitcoins. The more transactions in the network, the higher the transaction fee.
From 2022, the average transaction fee for bitcoins is about 1-5 cents (USD 0.01-0.05). However, it is worth noting that this fee is a 1 -fold payment for the block and walidacists can earn additional fees from transactions in subsequent blocks.
Are the node operators encouraged?
While node operators are actually encouraged to operate nodes on Bitcoin, the question remains whether they really bring financial advantages. The answer is to be understood how transaction fees work and whether the awards correspond to your interests.
In the case of Ethereum behind each block, there is a fee that the validators have to extract (1 BTC solved to 10^18 SHA-256). However, this fee is not transferred directly to node operators. Instead, it is used to pay the calculation resources that are required to solve complex mathematical problems. In other words, knot operators are promoted by Bitcoin transaction fees, but the prices result from the solutions for these problems.
Knot operator as walidators
In order to carry out the node on Ethereum or another blockchain, a person must participate in the validation process (also known as mining). This includes solving complex mathematical problems to check transactions and create new blocks. Although this work is often carried out independently of transaction fees, it is still a considerable amount of computing power that requires considerable resources.
If node operators get BTC directly from transactions, they can theoretically be encouraged to carry out more knots. However, the relationship between transaction fees and price distribution is complex. Fees for Bitcoin transactions were developed to encourage miners, effectively solve problems, but are not necessarily a direct reward for node operators.
Other factors in the game
Several factors contribute to the incentives of knot operators:
- Energy consumption : Start nodes requires considerable energy resources. The higher the energy costs, the more they encourage.
- Equipment costs : Knot operators need powerful devices for efficient calculations.
- Decentralization of the network
: Since Ethereum becomes a decentralized network, the number of validations increases, which makes it easier for knot operators to win prices.
Application
In summary, it can be said that the node operators are actually encouraged to carry out knots on bitcoins, the relationship between transaction fees and the distribution of the price is complex. The fees aim to encourage miners, effectively solve problems, are not necessarily a direct reward for node operators.