Doesn’t Bitcoin Transaction Verification Require Mining?

My understanding of the block structure that verifies Bitcoin transactions is that it is verified by the mining infrastructure, which essentially signs transaction blocks, including transactions. If the rate of mining decreases to the point where it is highly unprofitable, then who will be generating bitcoin blocks in the future?

Most likely we will see blocks increasingly generated by commercial high-speed transaction processing services, and not as much by miners.


About Dave

I have been into financial cryptography and alternative electronic currencies since the mid 1990s. I have attended the Financial Cryptography conference, and have invented patents in the fields of cryptography and security. I've built systems for Visa, the US Federal Reserve, NASD, and hundreds of banks around the world.

Posted on August 18, 2011, in Uncategorized. Bookmark the permalink. Leave a comment.

Leave a Reply

Fill in your details below or click an icon to log in: Logo

You are commenting using your account. Log Out /  Change )

Google+ photo

You are commenting using your Google+ account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )


Connecting to %s

%d bloggers like this: