Some of the benefits include:
- Can be made incredibly fast, imposing negligible overhead to the CPU while removing network/storage overheads.
- Autonomous - based on entropy rather than political agenda.
- Need not (and should not) be implemented at the base protocol, rather right at the edges of the node software. It is entirely opt-in.
- It can easily be made SPV compatible.
- It is not necessarily antithetical to developer governance rather supplementary.
- It can be used to supplement pricing heuristics.
- Speaks to the fidelity problem - if a company wants to build and build big the network will learn to accommodate for it.
Very basic model:
(If it goes down it's because my server has caught on fire - it'll be up again soon)
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source https://www.reddit.com/r/btc/comments/a3b0nr/encoding_adjustment_algorithm_a_market_driven/
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