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From: Ittay <ittay.eyal@cornell.edu>
Date: Mon, 5 May 2014 16:27:08 -0400
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Cc: bitcoin-research@lists.cs.princeton.edu,
	"bitcoin-development@lists.sourceforge.net"
	<bitcoin-development@lists.sourceforge.net>,
	Joseph Bonneau <jbonneau@princeton.edu>,
	=?UTF-8?Q?Emin_G=C3=BCn_Sirer?= <egs@systems.cs.cornell.edu>,
	Ittay Eyal <ittay.eyal@cornell.edu>
Subject: Re: [Bitcoin-development] Block collision resolution using the
 DECOR protocol and Bonneau's Kickbacks problem
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As far as I understand, the incentives Sergio suggests would work. So
we can assume that the pruned uncle blocks would still win their creators
at least partial revenue.

As for selfish mining - I'm not sure how GHOST affects it. I don't think it
does. The selfish miners just care about heaviest subtree rather than
longest chain. DECOR changes revenue collection significantly, so it
certainly affects selfish mining. I believe it changes the threshold at
which
selfish mining is profitable, but doesn't deter selfish mining completely:
Selfish miners can still cause others to reduce their revenue by having
them work on older blocks.

Ittay



On Mon, May 5, 2014 at 3:45 PM, Sergio Lerner <sergiolerner@certimix.com>wrote:

>
> On 02/05/2014 10:56 a.m., Joseph Bonneau wrote:
> > This is an interesting idea Sergio. I have two concerns:
> >
> > You mention "50% of the block reward" going to the uncle block. Does
> > this mean the parent gets 1, and the uncle 0.5, or both get 0.5? In
> > the first interpretation (which I assumed was the design), mining is
> > no longer a zero-sum game and this could have lots of unforeseen
> > implications. For example, selfish mining might be more profitable,
> > since you're less disincentivized to avoid conflicts.
> The second interpretation is the correct one.
> > In the second interpretation, there's pressure to have the next miner
> > ignore the uncle to not share the reward. This would encourage
> > kickback-style attacks and advantage large mining pools because they
> > can mine on their own blocks and ignore colliding uncles.
> Including an uncle can be done at any time before a coinbase matures
> (100 blocks) (of course the term "uncle" is misleading in those cases) .
> So, for example, the uncle can be included 50 blocks afterward. So it's
> very difficult that a miner prevents other miners from including the
> uncle and taking the reward given by uncle inclusion.
>
> Same ineffective attack:
> A big miner could try to bribe all other miners not to include the
> uncle, but this would be terribly costly. Suppose that I mine a block
> ignoring an uncle Z and then I publish this message: "Every miner from
> block number X to block number Y that does not include this uncle Z will
> be given Q Bitcoins". How much would Q be? Since by including the uncle
> the miner gets 5 BTC of reward (in the example case where block reward
> is 50 BTC), then each bribery payment would have to be higher than 5
> BTC, totaling 500 BTC ! much more than the 25 BTC the miner will loose
> by including the uncle.
>
> Just by sending a transaction with a lot of fees that depends on my
> block does not prevent subsequent miners from including the supposedly
> banned uncle.
>
> Then, I think there are no kickback-style attacks.
>
> >
> > Also, I think this came up in the Princeton meet-up, but it's not
> > ideal to just hash the blocks to decide the "winner" because this lets
> > you know in advance your block's likelihood of winning a collision by
> > looking at how high or low its hash is, in which case you can publish
> > a weak block right away or withhold a strong one and do selfish
> > mining. A better approach to break ties between blocks A and B is to
> > see if H(A||B) < H(B||A). That way neither block holder can find out
> > in advance if their block is likely to win a collision.
> >
> In the DECOR protocol, I think selfish miners cannot get any advantage,
> because the blocks that loose the latency race will come back as uncles
> and get their reward share anyway. Maybe Ittay Eyal and Emin Gun Sirer
> can say more about this...
>
> Best regards, Sergio.
>

--089e01493df6cf2daa04f8acf550
Content-Type: text/html; charset=UTF-8
Content-Transfer-Encoding: quoted-printable

<div dir=3D"ltr">As far as I understand, the incentives Sergio suggests wou=
ld work. So=C2=A0<div>we can assume that the pruned uncle blocks would stil=
l win their creators=C2=A0</div><div>at least partial revenue.=C2=A0</div><=
div><br></div>

<div>As for selfish mining - I&#39;m not sure how GHOST affects it. I don&#=
39;t think it=C2=A0</div><div>does. The selfish miners just care about heav=
iest subtree rather than=C2=A0</div><div>longest chain. DECOR changes reven=
ue collection significantly, so it=C2=A0</div>

<div>certainly affects selfish mining. I believe it changes the threshold a=
t which=C2=A0</div><div>selfish mining is profitable, but doesn&#39;t deter=
 selfish mining completely:=C2=A0</div><div>Selfish miners can still cause =
others to reduce their revenue by having=C2=A0</div>

<div>them work on older blocks.=C2=A0</div><div><br></div><div>Ittay=C2=A0<=
/div><div><br></div></div><div class=3D"gmail_extra"><br><br><div class=3D"=
gmail_quote">On Mon, May 5, 2014 at 3:45 PM, Sergio Lerner <span dir=3D"ltr=
">&lt;<a href=3D"mailto:sergiolerner@certimix.com" target=3D"_blank">sergio=
lerner@certimix.com</a>&gt;</span> wrote:<br>

<blockquote class=3D"gmail_quote" style=3D"margin:0 0 0 .8ex;border-left:1p=
x #ccc solid;padding-left:1ex"><div class=3D""><br>
On 02/05/2014 10:56 a.m., Joseph Bonneau wrote:<br>
&gt; This is an interesting idea Sergio. I have two concerns:<br>
&gt;<br>
&gt; You mention &quot;50% of the block reward&quot; going to the uncle blo=
ck. Does<br>
&gt; this mean the parent gets 1, and the uncle 0.5, or both get 0.5? In<br=
>
&gt; the first interpretation (which I assumed was the design), mining is<b=
r>
&gt; no longer a zero-sum game and this could have lots of unforeseen<br>
&gt; implications. For example, selfish mining might be more profitable,<br=
>
&gt; since you&#39;re less disincentivized to avoid conflicts.<br>
</div>The second interpretation is the correct one.<br>
<div class=3D"">&gt; In the second interpretation, there&#39;s pressure to =
have the next miner<br>
&gt; ignore the uncle to not share the reward. This would encourage<br>
&gt; kickback-style attacks and advantage large mining pools because they<b=
r>
&gt; can mine on their own blocks and ignore colliding uncles.<br>
</div>Including an uncle can be done at any time before a coinbase matures<=
br>
(100 blocks) (of course the term &quot;uncle&quot; is misleading in those c=
ases) .<br>
So, for example, the uncle can be included 50 blocks afterward. So it&#39;s=
<br>
very difficult that a miner prevents other miners from including the<br>
uncle and taking the reward given by uncle inclusion.<br>
<br>
Same ineffective attack:<br>
A big miner could try to bribe all other miners not to include the<br>
uncle, but this would be terribly costly. Suppose that I mine a block<br>
ignoring an uncle Z and then I publish this message: &quot;Every miner from=
<br>
block number X to block number Y that does not include this uncle Z will<br=
>
be given Q Bitcoins&quot;. How much would Q be? Since by including the uncl=
e<br>
the miner gets 5 BTC of reward (in the example case where block reward<br>
is 50 BTC), then each bribery payment would have to be higher than 5<br>
BTC, totaling 500 BTC ! much more than the 25 BTC the miner will loose<br>
by including the uncle.<br>
<br>
Just by sending a transaction with a lot of fees that depends on my<br>
block does not prevent subsequent miners from including the supposedly<br>
banned uncle.<br>
<br>
Then, I think there are no kickback-style attacks.<br>
<div class=3D""><br>
&gt;<br>
&gt; Also, I think this came up in the Princeton meet-up, but it&#39;s not<=
br>
&gt; ideal to just hash the blocks to decide the &quot;winner&quot; because=
 this lets<br>
&gt; you know in advance your block&#39;s likelihood of winning a collision=
 by<br>
&gt; looking at how high or low its hash is, in which case you can publish<=
br>
&gt; a weak block right away or withhold a strong one and do selfish<br>
&gt; mining. A better approach to break ties between blocks A and B is to<b=
r>
&gt; see if H(A||B) &lt; H(B||A). That way neither block holder can find ou=
t<br>
&gt; in advance if their block is likely to win a collision.<br>
&gt;<br>
</div>In the DECOR protocol, I think selfish miners cannot get any advantag=
e,<br>
because the blocks that loose the latency race will come back as uncles<br>
and get their reward share anyway. Maybe Ittay Eyal and Emin Gun Sirer<br>
can say more about this...<br>
<br>
Best regards, Sergio.<br>
</blockquote></div><br></div>

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