I find this to be the most valid question.
Hive is no different, except that we pay 20 nodes a lot of money instead of spreading that out to a ton of miners. We centralized our chain so that we could ensure high throughput.
What's the cost in ratio to amount being paid to block producer? Is so significant that block producer cannot easily afford to increase their capacity if need be?
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Running witness node only costs a few hundred dollars PER YEAR at present. An RPC node (a node that DApps make remote procedure calls to when they interact with the chain) costs a bit more.
A block is signed once every three seconds or 20 times a minute on Hive. A top 20 witness signs a block thus roughly once a minute. In a year, there are 60x24x365 = 525,600 minutes. The block reward is 0.261 HIVE at present. Thus a top 20 witness gets about 137,200 HIVE as block rewards. The price of HIVE is 0.115 USD at present. Thus a top 20 witness makes about 16,000 USD a year at present. Relative to the cost of running a witness server, witness rewards are plentiful.
Hive should be prepared for onboarding millions of users. But after all these years I would say that some attention to should be paid to how all those users should be onboarded.
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