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FEE FILLED BLOCKS

In this email exchange on the metzdowd Cryptography Mailing List, Satoshi Nakamoto discusses the potential for transaction fees in the Bitcoin system. This conversation is a response to concerns about the sustainability of Bitcoin’s economic model, particularly in relation to inflation.

Nakamoto proposes a simple solution: make the output value from any transaction 1 cent less than the input value. This difference would act as a transaction fee, providing an incentive for nodes to participate in the network. The fees collected in a block could then be used as the reward for finding a proof-of-work for that block.

This email provides a glimpse into the early discussions about Bitcoin’s economic model. It shows Nakamoto’s willingness to adapt and refine the system in response to feedback and potential issues. It also introduces the concept of transaction fees, which have since become a fundamental part of the Bitcoin system.