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The Difficulty Adjustment in Bitcoin
There's a difficulty adjustment in this game. As blocks are getting mined, you're constantly adjusting this after each turn. The only time I've seen it different than that is it depends on who you're playing with. And if you have someone that's going to take five minutes of turn, like I don't know, maybe get a time route or something.
One of the most important topics in Bitcoin is this idea of game theory and the mutually reinforcing incentives to keep the entire network balanced and beneficial to all participants. Preston Pysh and Scott Lindberg cover all sorts of interesting ideas around Bitcoin’s overall game theory on today's episode.
IN THIS EPISODE, YOU’LL LEARN:
00:00 - Intro
02:30 - An overview of Game Theory.
12:53 - The critical difference between infinite and finite games.
23:21 - What Satoshi had to consider when designing Bitcoin from the start.
38:04 - What are some of Scott's favorite game theory aspects found in Bitcoin?
42:51 - How Scott designed a playable game around Bitcoin.
46:27 - The iteration process for designing games that are playable and balanced.
56:19 - How game designers account for skilled players playing a game with unskilled players.
01:03:28 - What Volatility does to a games design.
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