Tweetstorm: Why People Think Bitcoin Miners Are Not Intermediaries

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Tweetstorm: Bitcoin Miners Are Not Intermediaries

By Angela Walch

Posted July 18, 2019

These are reasons why people think #Bitcoin miners (including any of hashers, mining pool operators, cloud mining companies) are not intermediaries, from what I can tell. #crypto

What am I missing, and what do you think?

(1) miners donโ€™t know who the sender or recipient of a transaction is, so they canโ€™t discriminate amongst them other than based on the txn fee offered.

(2) the economic incentives built into the system deter miners from trying to cheat.

(3) a given miner only gets to censor or order txns in a block they actually win, so a particular miner only has power for a very short time.

(4) it is unknown which miner will actually win a particular block (hashpower only determines the odds of winning), so there is no particular, designated miner at the time a user proposes a transaction.

(5) miners perform purely ministerial tasks involving no discretion or judgement (just run code), so they are purely automata.

(6) there is not a single central miner that processes all txns (only have AN intermediary when there is ONLY one).

(7) related to the game theory, there an assumption that a majority of the miners/hashpower will follow the rules of the protocol and not attempt to exploit the system or its users.

(8) anyone can become a miner - there is no permission needed to begin or to stop.

(9) a miner canโ€™t include an invalid txn as full nodes wonโ€™t approve.

(10) Please note that in compiling this list, I am not endorsing any of these stmts as true, nor am I putting forth any legal consequences that should/shouldnโ€™t follow.

And I am using the most basic, lay defn of โ€˜intermediaryโ€™.

A middleman.

**To be clear, I think most of these claims are actually not strictly accurate.