📓Supporting Calculations

The security, growth and stability of a cryptocurrency network fundamentally rely on the mathematical underpinnings of its protocol.

In our revised Bitcoin system, where we have incorporated Solana NFTs into the mining process and modified the block time and halving schedule, the calculations for ensuring network security and efficiency take on new dimensions.

Security.

• 51% Attack Scenario: The most notable threat to any PoW blockchain is the 51% attack, where an entity gains control of the majority of the network's mining power. In our system, the distribution of mining power is regulated by the limited number of NFTs, each contributing a fixed amount of hash power. This setup inherently limits the potential for any single entity to dominate the mining process, thereby reducing the risk of a 51% attack.

• NFTs as a Stabilizing Factor: The fixed hash power contribution of each NFT introduces a stabilizing factor into the network. Unlike traditional mining setups where computational power can fluctuate significantly, the hash power in our system remains more consistent, making it easier to predict and manage the network's overall power.

Network Efficiency.

• Adjusting to Changing Network Conditions: With a block time of 5 minutes and a halving occurring every 42,000 blocks, the network must be efficient in adapting to changing conditions. The shorter block time allows for quicker adjustments and more responsive handling of transaction volumes and network participation changes.

• Impact of Faster Block Time on Mining: The faster block time also influences the mining strategy. Miners need to be more agile and responsive in their operations, adapting quickly to the changing network difficulty and the reduced window for block rewards.

Mathematical Model.

• Dynamic Difficulty Adjustment: The network's difficulty adjustment algorithm is a crucial element. It has been finely tuned to account for the faster block times and the limited, consistent hash power contributed by the NFTs.

• Economic Models: Developing accurate economic models is essential to predict how changes in block rewards, halving frequency, and network participation will impact the currency's value and the miners' behavior.

Halving and it's economic impact.

• Rapid Approach to Maximum Supply: With halving occurring more frequently, the maximum supply of bitcoins will be reached sooner than in the original protocol. This has significant implications for the currency's scarcity and potential value over time.

• Long-Term Security Post-Maximum Supply: Once the maximum supply is reached, transaction fees will become the primary incentive for miners. The system's design must ensure that these fees are sufficient to maintain network security and miner participation in the long term.