One of the primary arguments in favor of using Merkle Trees as the mechanism of encoding transactions is the value it provides in Partial Verifications or Simplified Payment Verification.
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kindly pay a visit to the website. What about Monero's features being implemented in Ethereum? Is Monero intended to be a competitor to Bitcoin, or is the intent to develop technology that will improve Bitcoin? Is there any reason why Monero's features wouldn't just be brought to Bitcoin through sidechains?
And you know, as people like to say, a lot of times in the media when they, when they're like making fun of Bitcoin is we spend like as much energy as, as a small or medium sized country on this thing. And while you're doing that, of course the competition is going to also step up their game and try to compete with you. So it's a very interesting system that way. Because in order to attack Bitcoin, you're going to need to amass the resources of a country to produce those blocks faster than the competition. Yan Pritzker: So it requires you to not only control half, of the well, in order to control half of the hash rate, you pretty much have to have half of the hardware and you know, half of the the energy expenditure of that network. And that's a great, that's, that's how we keep it secure, Binance right?
They need to have you know, the right tech structures in place to be able to like write off that hardware, all this kind of stuff. For example, if you want to get your hands on quote unquote clean Bitcoins, right? So the answer to whether you should mine is no as an individual you should likely not mine. These things need to happen in order for mining to be profitable at scale. And that's kind of nice because you haven't logged into any exchange. Yan Pritzker: They need to be buying their hardware in bulk to get cheaper hardware. You're literally generating them sort of out of thin air, but you know, you're using your electricity to pay for that. You need specialized hardware and you need very cheap power. So unless you're willing to pay for that sort of anonymity through essentially overspending compared to what you would've paid for on an exchange I would not recommend mining. You haven't interacted with anybody. Because by mining you are generating the Bitcoins yourself. But the downside of that is that you're not going to be profitable. I mean, you may have some reasons to mind.
From the cryptonote whitepaper, each of these drawbacks is listed - 2.1 Traceability of Transactions, 2.2 Proof of Work Function, 2.3 Irregular Emission, 2.4 Hardcoded Constants, and 2.5 Bulky Scripts. It is unknown whether Bitcoin will ever implement any of Monero's technologies, but from the outset, the cryptonote protocol (from which Monero has evolved) was made to address some of the shortcomings of the bitcoin protocol. Additionally, from the whitepaper, we see this passage -
After that, we went to 25 Bitcoins for the next four years, and then we went to 12 and a half Bitcoins, which is where we are now. And we're just about to come up to a, another having, which is happening in around may of next year, BNB which will bring us a six and a quarter Bitcoins. Yan Pritzker: And that happened for the first four years. So in the software, we know that at a certain block height, we, the block reward should be this or that. Right and so if you try to produce a block reward that is outside of those parameters, you're gonna get rejected. So why, why does this happen? So today, miners have to produce 12 and a half Bitcoins per block. If they produce one that has, you know, 50, then that block won't be valid. Well, crypto again, this is enforced by the rules and the software. That was valid, you know eight years ago or whenever bitcoin was born 10 years ago.
You would be suspected of doing something. In addition, as others have mentioned, one could trace transactions being moved to the Monero sidechain and this would be the equivalent of getting $10,000 in cash. Albeit these features, this theoretical Monero sidechain would now be coupled to Bitcoin's security model and other parameters. If we take all of the features of Monero and bring them as a sidechain, this sidechain will have dynamic block sizes, an ASIC resistant proof of work, and last but not least, untraceable transactions. There's plenty of reasons for bitcoin to bring Monero's features into Bitcoin
through a sidechain, but there's no reason for Monero to become a Bitcoin sidechain.
We're basically rolling a die and we're generating a random number and we're putting it through. Yan Pritzker: But these numbers have to be very specific. The way it works is we have essentially a very large space in which we are trying to find a very small subset of things that make sense. And what they had function does is it produces essentially it takes some data, which is the transactional data that's happening in Bitcoin. As well as you know, the Bitcoins that are generating for themselves and they're being put through this hash function to generate a very large number. It is a mathematical formula, but it's not a complex equation it's just a very simple thing called the hash function. So for example, it's like looking for a needle in a haystack. Things like people trying to send Bitcoins to each other.