
How Bitcoin wallets can handle real transaction fees - mwilcox
http://lists.linuxfoundation.org/pipermail/bitcoin-dev/2015-November/011685.html
======
contingencies
With fees, the network solves certain issues (incentives for miners) but
simultaneously causes others (chiefly incentivizing intra-exchange transfers
as an alternative to relatively expensive, time consuming and uncertain on-
blockchain transfers; also increasing secure and holistic implementation
complexity, raising the bar for newcomers thus acting against heterogeneity of
commercial exchanges or other automated systems, and thus overall network
health). The intra-exchange transfer incentivization is a serious issue as it
encourages real world average joe users, who have less capacity to recognize
the forfeited value of the public blockchain when requesting their exchange to
execute such internal maneuvers (consciously or otherwise). Ultimately fees
may decrease heterogeneity in the exchange market and create more central
points of vulnerability (regulatory, technical) for the network as a whole.
That's just how I see the situation: am I missing something? I wonder, how
long until large exchanges perform off-blockchain transfer and allocate mutual
credit (eg. via escrow deposit) to facilitate instant, fee-free, off-
blockchain clearance for their customers, thus coming full-circle from
conventional finance?

~~~
plonh
That sounds interesting but is way over the head of a non-bitcoin expert.

