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Subject: Re: [bitcoin-dev] Introducing a POW through a soft-fork
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Just going to throw in my support for a POW change, not any particular =
implementation, but the idea.

Bitcoin is technically owned by China now. That's not acceptable.

- Greg

--
Please do not email me anything that you are not comfortable also =
sharing with the NSA.

> On Oct 31, 2017, at 10:48 PM, Devrandom via bitcoin-dev =
<bitcoin-dev@lists.linuxfoundation.org =
<mailto:bitcoin-dev@lists.linuxfoundation.org>> wrote:
>=20
> Hi all,
>=20
> Feedback is welcome on the draft below.  In particular, I want to see =
if there is interest in further development of the idea and also =
interested in any attack vectors or undesirable dynamics.
>=20
> (Formatted version available here: =
https://github.com/devrandom/btc-papers/blob/master/aux-pow.md =
<https://github.com/devrandom/btc-papers/blob/master/aux-pow.md> )
>=20
> # Soft-fork Introduction of a New POW
>=20
> ## Motivation:
>=20
> - Mitigate mining centralization pressures by introducing a POW that =
does not have economies of scale
> - Introduce an intermediary confirmation point, reducing the impact of =
mining power fluctuations
>=20
> Note however that choice of a suitable POW will require deep analysis. =
 Some pitfalls include: botnet mining, POWs that seem ASIC resistant but =
are not, unexpected/covert optimization.
>=20
> In particular, unexpected/covert optimizations, such as ASCIBOOST, =
present a potential centralizing and destabilizing force.
>=20
> ## Design
>=20
> ### Aux POW intermediate block
>=20
> Auxiliary POW blocks are introduced between normal blocks - i.e. the =
chain alternates between the two POWs.
> Each aux-POW block points to the previous normal block and contains =
transactions just like a normal block.
> Each normal block points to the previous aux-POW block and must =
contain all transactions from the aux-POW block.
> Block space is not increased.
>=20
> The new intermediate block and the pointers are introduced via a =
soft-fork restriction.
>=20
> ### Reward for aux POW miners
>=20
> The reward for the aux POW smoothly increases from zero to a target =
value (e.g. 1/2 of the total reward) over time.
> The reward is transferred via a soft-fork restriction requiring a =
coinbase output to an address published in the
> aux-POW block.
>=20
> ### Aux POW difficulty adjustment
>=20
> Difficulty adjustments remain independent for the two POWs.
>=20
> The difficulty of the aux POW is adjusted based on the average time =
between normal block found
> to aux block found.
>=20
> Further details are dependent on the specific POW.
>=20
> ### Heaviest chain rule change
>=20
> This is a semi-hard change, because non-upgraded nodes can get on the =
wrong chain in case of attack.  However,
> it might be possible to construct an alert system that notifies =
non-upgraded nodes of an upcoming rule change.
> All blocks are still valid, so this is not a hardforking change.
>=20
> The heaviest chain definition changes from sum of `difficulty` to sum =
of:
>=20
>     mainDifficulty ^ x * auxDifficulty ^ y
>=20
> where we start at:
>=20
>     x =3D 1; y =3D 0
>=20
> and end at values of x and y that are related to the target relative =
rewards.  For example, if the target rewards
> are equally distributed, we will want ot end up at:
>=20
>     x =3D 1/2; y =3D 1/2
>=20
> so that both POWs have equal weight.  If the aux POW is to become =
dominant, x should end small relative to y.
>=20
>=20
> ## Questions and Answers
>=20
> - What should be the parameters if we want the aux POW to have equal =
weight? A: 1/2 of the reward should be transferred
> to aux miners and x =3D 1/2, y =3D 1/2.
>=20
> - What should be the parameters if we want to deprecate the main POW?  =
A: most of the reward should be transferred to
> aux miners and x =3D 0, y =3D 1.  The main difficulty will tend to =
zero, and aux miners will just trivially generate the
> main block immediately after finding an aux block, with identical =
content.
>=20
> - Wasted bandwidth to transfer transactions twice?  A: this can be =
optimized by skipping transactions already
> transferred.
>=20
> - Why would miners agree to soft-fork away some of their reward?  A: =
they would agree if they believe that
> the coins will increase in value due to improved security properties.
>=20
> ## Open Questions
>=20
> - After a block of one type is found, we can naively assume that POW =
will become idle while a block of the other type is being mined.  In =
practice, the spare capacity can be used to find alternative =
("attacking") blocks or mine other coins.  Is that a problem?
> - Is selfish mining amplified by this scheme for miners that have both =
types of hardware?
>=20
> ## POW candidates
>=20
> - SHA256 (i.e. use same POW, but introduce an intermediate block for =
faster confirmation)
> - Proof of Space and Time (Bram Cohen)
> - Equihash
> - Ethash
>=20
> ## Next Steps
>=20
> - evaluate POW candidates
> - evaluate difficulty adjustment rules
> - simulate miner behavior to identify if there are incentives for =
detrimental behavior patterns (e.g. block withholding / selfish mining)
> - Protocol details
>=20
> ## Credits
>=20
> Bram Cohen came up with a similar idea back in March:
> =
https://lists.linuxfoundation.org/pipermail/bitcoin-dev/2017-March/013744.=
html =
<https://lists.linuxfoundation.org/pipermail/bitcoin-dev/2017-March/013744=
.html>_______________________________________________
> bitcoin-dev mailing list
> bitcoin-dev@lists.linuxfoundation.org =
<mailto:bitcoin-dev@lists.linuxfoundation.org>
> https://lists.linuxfoundation.org/mailman/listinfo/bitcoin-dev


--Apple-Mail=_7FB1C43F-2CD8-4630-A50B-99FFB29C12DE
Content-Transfer-Encoding: quoted-printable
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	charset=us-ascii

<html><head><meta http-equiv=3D"Content-Type" content=3D"text/html =
charset=3Dus-ascii"><meta http-equiv=3D"Content-Type" content=3D"text/html=
 charset=3Dus-ascii"></head><body style=3D"word-wrap: break-word; =
-webkit-nbsp-mode: space; -webkit-line-break: after-white-space;" =
class=3D"">Just going to throw in my support for a POW change, not any =
particular implementation, but the idea.<div class=3D""><br =
class=3D""></div><div class=3D"">Bitcoin is technically owned by China =
now. That's not acceptable.</div><div class=3D""><br class=3D""></div><div=
 class=3D"">- Greg<br class=3D""><div class=3D"">
<span style=3D"color: rgb(0, 0, 0); font-family: Helvetica; font-size: =
14px; font-style: normal; font-variant-caps: normal; font-weight: =
normal; letter-spacing: normal; text-align: start; text-indent: 0px; =
text-transform: none; white-space: normal; word-spacing: 0px; =
-webkit-text-stroke-width: 0px; font-variant-ligatures: normal; =
font-variant-position: normal; font-variant-numeric: normal; =
font-variant-alternates: normal; font-variant-east-asian: normal; =
line-height: normal; orphans: 2; widows: 2;" class=3D""><br =
class=3D"Apple-interchange-newline">--</span><br style=3D"color: rgb(0, =
0, 0); font-family: Helvetica; font-size: 14px; font-style: normal; =
font-variant-caps: normal; font-weight: normal; letter-spacing: normal; =
text-align: start; text-indent: 0px; text-transform: none; white-space: =
normal; word-spacing: 0px; -webkit-text-stroke-width: 0px; =
font-variant-ligatures: normal; font-variant-position: normal; =
font-variant-numeric: normal; font-variant-alternates: normal; =
font-variant-east-asian: normal; line-height: normal; orphans: 2; =
widows: 2;" class=3D""><span style=3D"color: rgb(0, 0, 0); font-family: =
Helvetica; font-size: 14px; font-style: normal; font-variant-caps: =
normal; font-weight: normal; letter-spacing: normal; text-align: start; =
text-indent: 0px; text-transform: none; white-space: normal; =
word-spacing: 0px; -webkit-text-stroke-width: 0px; =
font-variant-ligatures: normal; font-variant-position: normal; =
font-variant-numeric: normal; font-variant-alternates: normal; =
font-variant-east-asian: normal; line-height: normal; orphans: 2; =
widows: 2;" class=3D"">Please do not email me anything that you are not =
comfortable also sharing</span><span style=3D"color: rgb(0, 0, 0); =
font-family: Helvetica; font-size: 14px; font-style: normal; =
font-variant-caps: normal; font-weight: normal; letter-spacing: normal; =
text-align: start; text-indent: 0px; text-transform: none; white-space: =
normal; word-spacing: 0px; -webkit-text-stroke-width: 0px; =
font-variant-ligatures: normal; font-variant-position: normal; =
font-variant-numeric: normal; font-variant-alternates: normal; =
font-variant-east-asian: normal; line-height: normal; orphans: 2; =
widows: 2;" class=3D"">&nbsp;with the NSA.</span>
</div>
<br class=3D""><div><blockquote type=3D"cite" class=3D""><div =
class=3D"">On Oct 31, 2017, at 10:48 PM, Devrandom via bitcoin-dev =
&lt;<a href=3D"mailto:bitcoin-dev@lists.linuxfoundation.org" =
class=3D"">bitcoin-dev@lists.linuxfoundation.org</a>&gt; wrote:</div><br =
class=3D"Apple-interchange-newline"><div class=3D""><div dir=3D"ltr" =
class=3D""><span style=3D"color:rgb(33,33,33);font-size:13px" =
class=3D"">Hi all,</span><div style=3D"color:rgb(33,33,33);font-size:13px"=
 class=3D""><br class=3D""></div><div =
style=3D"color:rgb(33,33,33);font-size:13px" class=3D"">Feedback is =
welcome on the draft below.&nbsp; In particular, I want to see if there =
is interest in further development of the idea and also interested in =
any attack vectors or undesirable dynamics.</div><div =
style=3D"color:rgb(33,33,33);font-size:13px" class=3D""><br =
class=3D""></div><div style=3D"color:rgb(33,33,33);font-size:13px" =
class=3D"">(Formatted version available here:&nbsp;<a =
href=3D"https://github.com/devrandom/btc-papers/blob/master/aux-pow.md" =
class=3D"">https://github.com/devrandom/btc-papers/blob/master/aux-pow.md<=
/a> )</div><div style=3D"color:rgb(33,33,33);font-size:13px" =
class=3D""><br class=3D""></div><div =
style=3D"color:rgb(33,33,33);font-size:13px" class=3D""><div class=3D""># =
Soft-fork Introduction of a New POW</div><div class=3D""><br =
class=3D""></div><div class=3D"">## Motivation:<br class=3D""></div><div =
class=3D""><br class=3D""></div><div class=3D"">- Mitigate mining =
centralization pressures by introducing a POW that does not have =
economies of scale</div><div class=3D"">- Introduce an intermediary =
confirmation point, reducing the impact of mining power =
fluctuations</div><div class=3D""><br class=3D""></div><div =
class=3D"">Note however that choice of a suitable POW will require deep =
analysis.&nbsp; Some pitfalls include: botnet mining, POWs that seem =
ASIC resistant but are not, unexpected/covert optimization.</div><div =
class=3D""><br class=3D""></div><div class=3D"">In particular, =
unexpected/covert optimizations, such as ASCIBOOST, present a potential =
centralizing and destabilizing force.</div><div class=3D""><br =
class=3D""></div><div class=3D"">## Design</div><div class=3D""><br =
class=3D""></div><div class=3D"">### Aux POW intermediate =
block</div><div class=3D""><br class=3D""></div><div class=3D"">Auxiliary =
POW blocks are introduced between normal blocks - i.e. the chain =
alternates between the two POWs.</div><div class=3D"">Each aux-POW block =
points to the previous normal block and contains transactions just like =
a normal block.</div><div class=3D"">Each normal block points to the =
previous aux-POW block and must contain all transactions from the =
aux-POW block.</div><div class=3D"">Block space is not =
increased.</div><div class=3D""><br class=3D""></div><div class=3D"">The =
new intermediate block and the pointers are introduced via a soft-fork =
restriction.</div><div class=3D""><br class=3D""></div><div class=3D"">###=
 Reward for aux POW miners</div><div class=3D""><br class=3D""></div><div =
class=3D"">The reward for the aux POW smoothly increases from zero to a =
target value (e.g. 1/2 of the total reward) over time.</div><div =
class=3D"">The reward is transferred via a soft-fork restriction =
requiring a coinbase output to an address published in the</div><div =
class=3D"">aux-POW block.</div><div class=3D""><br class=3D""></div><div =
class=3D"">### Aux POW difficulty adjustment</div><div class=3D""><br =
class=3D""></div><div class=3D"">Difficulty adjustments remain =
independent for the two POWs.</div><div class=3D""><br =
class=3D""></div><div class=3D"">The difficulty of the aux POW is =
adjusted based on the average time between normal block found</div><div =
class=3D"">to aux block found.</div><div class=3D""><br =
class=3D""></div><div class=3D"">Further details are dependent on the =
specific POW.</div><div class=3D""><br class=3D""></div><div =
class=3D"">### Heaviest chain rule change</div><div class=3D""><br =
class=3D""></div><div class=3D"">This is a semi-hard change, because =
non-upgraded nodes can get on the wrong chain in case of attack.&nbsp; =
However,</div><div class=3D"">it might be possible to construct an alert =
system that notifies non-upgraded nodes of an upcoming rule =
change.</div><div class=3D"">All blocks are still valid, so this is not =
a hardforking change.</div><div class=3D""><br class=3D""></div><div =
class=3D"">The heaviest chain definition changes from sum of =
`difficulty` to sum of:</div><div class=3D""><br class=3D""></div><div =
class=3D"">&nbsp; &nbsp; mainDifficulty ^ x * auxDifficulty ^ =
y</div><div class=3D""><br class=3D""></div><div class=3D"">where we =
start at:</div><div class=3D""><br class=3D""></div><div class=3D"">&nbsp;=
 &nbsp; x =3D 1; y =3D 0</div><div class=3D""><br class=3D""></div><div =
class=3D"">and end at values of x and y that are related to the target =
relative rewards.&nbsp; For example, if the target rewards</div><div =
class=3D"">are equally distributed, we will want ot end up at:</div><div =
class=3D""><br class=3D""></div><div class=3D"">&nbsp; &nbsp; x =3D 1/2; =
y =3D 1/2</div><div class=3D""><br class=3D""></div><div class=3D"">so =
that both POWs have equal weight.&nbsp; If the aux POW is to become =
dominant, x should end small relative to y.</div><div class=3D""><br =
class=3D""></div><div class=3D""><br class=3D""></div><div class=3D"">## =
Questions and Answers</div><div class=3D""><br class=3D""></div><div =
class=3D"">- What should be the parameters if we want the aux POW to =
have equal weight? A: 1/2 of the reward should be transferred</div><div =
class=3D"">to aux miners and x =3D 1/2, y =3D 1/2.</div><div =
class=3D""><br class=3D""></div><div class=3D"">- What should be the =
parameters if we want to deprecate the main POW?&nbsp; A: most of the =
reward should be transferred to</div><div class=3D"">aux miners and x =3D =
0, y =3D 1.&nbsp; The main difficulty will tend to zero, and aux miners =
will just trivially generate the</div><div class=3D"">main block =
immediately after finding an aux block, with identical =
content.</div><div class=3D""><br class=3D""></div><div class=3D"">- =
Wasted bandwidth to transfer transactions twice?&nbsp; A: this can be =
optimized by skipping transactions already</div><div =
class=3D"">transferred.</div><div class=3D""><br class=3D""></div><div =
class=3D"">- Why would miners agree to soft-fork away some of their =
reward?&nbsp; A: they would agree if they believe that</div><div =
class=3D"">the coins will increase in value due to improved security =
properties.</div><div class=3D""><br class=3D""></div><div class=3D"">## =
Open Questions</div><div class=3D""><br class=3D""></div><div class=3D"">-=
 After a block of one type is found, we can naively assume that POW will =
become idle while a block of the other type is being mined.&nbsp; In =
practice, the spare capacity can be used to find alternative =
("attacking") blocks or mine other coins.&nbsp; Is that a =
problem?</div><div class=3D"">- Is selfish mining amplified by this =
scheme for miners that have both types of hardware?</div><div =
class=3D""><br class=3D""></div><div class=3D"">## POW =
candidates</div><div class=3D""><br class=3D""></div><div class=3D"">- =
SHA256 (i.e. use same POW, but introduce an intermediate block for =
faster confirmation)</div><div class=3D"">- Proof of Space and Time =
(Bram Cohen)</div><div class=3D"">- Equihash</div><div class=3D"">- =
Ethash</div><div class=3D""><br class=3D""></div><div class=3D"">## Next =
Steps</div><div class=3D""><br class=3D""></div><div class=3D"">- =
evaluate POW candidates</div><div class=3D"">- evaluate difficulty =
adjustment rules</div><div class=3D"">- simulate miner behavior to =
identify if there are incentives for detrimental behavior patterns (e.g. =
block withholding / selfish mining)</div><div class=3D"">- Protocol =
details</div><div class=3D""><br class=3D""></div><div class=3D"">## =
Credits</div><div class=3D""><br class=3D""></div><div class=3D"">Bram =
Cohen came up with a similar idea back in March:</div><div class=3D""><a =
href=3D"https://lists.linuxfoundation.org/pipermail/bitcoin-dev/2017-March=
/013744.html" target=3D"_blank" =
class=3D"">https://lists.linuxfoundation.org/pipermail/bitcoin-dev/2017-Ma=
rch/013744.html</a></div></div></div>
_______________________________________________<br class=3D"">bitcoin-dev =
mailing list<br class=3D""><a =
href=3D"mailto:bitcoin-dev@lists.linuxfoundation.org" =
class=3D"">bitcoin-dev@lists.linuxfoundation.org</a><br class=3D""><a =
href=3D"https://lists.linuxfoundation.org/mailman/listinfo/bitcoin-dev" =
class=3D"">https://lists.linuxfoundation.org/mailman/listinfo/bitcoin-dev<=
/a><br class=3D""></div></blockquote></div><br =
class=3D""></div></body></html>=

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