This scheme doesn't scale.
If every TX used paypal's approach, the 'green miners' would end up with thousands of dust UTXOs which they would need to clean up, every single block. Network throughput would drop significantly.
With standard bitcoin fee subsidy, all miner fees are automatically consolidated in the coinbase transaction: No dust to clean up.
Not to mention the fact that this approach doesn't necessarily require the miners to use green energy to mine the TX - it just incentivizes a particular arbitrary set of miners to mine the TX. Those miners could pay off a different non-green miner to mine the TX, because it is still consensus-valid.
Paypal's idea is just a roundabout way of reinventing the same open fee market which already exists, but with a lame attempt at green-washing.
conduition
npub1l6…6zvtg
2024-04-25 17:15:27
in reply to nevent1q…he6j
Author Public Key
npub1l6uy9chxyn943cmylrmukd3uqdq8h623nt2gxfh4rruhdv64zpvsx6zvtgPublished at
2024-04-25 17:15:27Event JSON
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"created_at": 1714065327,
"kind": 1,
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"content": "This scheme doesn't scale. \n\nIf every TX used paypal's approach, the 'green miners' would end up with thousands of dust UTXOs which they would need to clean up, every single block. Network throughput would drop significantly.\n\nWith standard bitcoin fee subsidy, all miner fees are automatically consolidated in the coinbase transaction: No dust to clean up.\n\nNot to mention the fact that this approach doesn't necessarily require the miners to use green energy to mine the TX - it just incentivizes a particular arbitrary set of miners to mine the TX. Those miners could pay off a different non-green miner to mine the TX, because it is still consensus-valid.\n\nPaypal's idea is just a roundabout way of reinventing the same open fee market which already exists, but with a lame attempt at green-washing.",
"sig": "3f8fec78d3978e048fac3251592006e2cd818bb51951e74814fe7360259cc347d45dcec498e8a778c458299cf064b5a02407c79e22eef344735044f15484f21c"
}