Leo Zhang (Alkimiya) on creating a market for Bitcoin blockspace (EP.542)
On The Brink with Castle Island
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Analyzing Bitcoin Transaction Fee Averaging Markets and Miners' Influence
This chapter dives deep into the concept of a contract linked to the average transaction fee in Bitcoin blocks, explaining the use of median and average for stability. It explores how contracts settle in or out of the money and the manipulation of block-based markets by Bitcoin miners. Additionally, it delves into creating a market for Bitcoin blockspace, using Ethereum as a base and discussing the interest from Layer 2 solutions and miners taking the short side to hedge against increasing transaction fees.
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