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authorBob McElrath <bob_bitcoin@mcelrath.org>2015-12-19 19:30:45 +0000
committerbitcoindev <bitcoindev@gnusha.org>2015-12-19 19:30:47 +0000
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treec1bd1b33e997f6610ff07618a4d330f3a1e214c1
parent79efc763dea869e69bd8c0448153ab683197e271 (diff)
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Re: [bitcoin-dev] We need to fix the block withholding attack
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+Date: Sat, 19 Dec 2015 19:30:45 +0000
+From: Bob McElrath <bob_bitcoin@mcelrath.org>
+To: Peter Todd <pete@petertodd.org>
+Message-ID: <20151219193045.GP20063@mcelrath.org>
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+Subject: Re: [bitcoin-dev] We need to fix the block withholding attack
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+
+Peter Todd via bitcoin-dev [bitcoin-dev@lists.linuxfoundation.org] wrote:
+> One of the issues raised by the pools present was block withholding
+> attacks, which they said are a real issue for them. In particular, pools
+> are receiving legitimate threats by bad actors threatening to use block
+> withholding attacks against them.
+
+The only possible other bad actors are other miners. So who are the "bad actor"
+miners? It's a short list of candidates.
+
+> P2Pool is often brought up as a replacement for pools, but it itself is still
+> relatively vulnerable to block withholding, and in any case has many other
+> vulnerabilities and technical issues that has prevented widespread adoption of
+> P2Pool.
+
+I've been trying to understand this source of "vulnerabilities and technical
+issues" with p2pool and have received a lot of contradictory information. Can
+someone in the know summarize what the problems with p2pool are?
+
+The economic situation where miners can be deprived of profit due to the lack of
+synchronicity in block updates is a physics problem due to the size of the Earth
+and will never be removed. This is a design flaw in Bitcoin. Therefore a
+different, more comprehensive solution is called for.
+
+My solution to this is somewhat longer term and needs more simulation but
+fundamentally removes the source of contention and fixes the design flaw, while
+remaining as close "in spirit" to bitcoin as possible:
+ https://scalingbitcoin.org/hongkong2015/presentations/DAY2/2_breaking_the_chain_1_mcelrath.pdf
+Not only does block withholding simply not work to deny other miners income due
+to the absence of orphans, but I explicitly added a dis-incentive against
+withholding blocks in terms of the "cohort difficulty". Other graph-theoretic
+quantities are in general possible in the reward function to better align the
+incentives of miners with the correct operation of the system. Also by lowering
+the target difficulty and increasing the block (bead) rate, one lowers the
+variance of miner income.
+
+Part of the reason I ask is that there has been some interest in testing my
+ideas in p2pool itself (or a new similar share pool), but I'm failing to
+understand the source of all the complaints about p2pool.
+
+--
+Cheers, Bob McElrath
+
+"For every complex problem, there is a solution that is simple, neat, and wrong."
+ -- H. L. Mencken
+
+