From mboxrd@z Thu Jan 1 00:00:00 1970 Received: from sog-mx-4.v43.ch3.sourceforge.com ([172.29.43.194] helo=mx.sourceforge.net) by sfs-ml-1.v29.ch3.sourceforge.com with esmtp (Exim 4.76) (envelope-from ) id 1Xybnq-0000vf-SZ for bitcoin-development@lists.sourceforge.net; Wed, 10 Dec 2014 07:35:18 +0000 X-ACL-Warn: Received: from wp059.webpack.hosteurope.de ([80.237.132.66]) by sog-mx-4.v43.ch3.sourceforge.com with esmtps (TLSv1:AES256-SHA:256) (Exim 4.76) id 1Xybnp-0006zl-45 for bitcoin-development@lists.sourceforge.net; Wed, 10 Dec 2014 07:35:18 +0000 Received: from [37.143.74.116] (helo=[192.168.0.102]); authenticated by wp059.webpack.hosteurope.de running ExIM with esmtpsa (TLS1.0:RSA_AES_128_CBC_SHA1:16) id 1Xybni-0004FZ-GC; Wed, 10 Dec 2014 08:35:10 +0100 From: Tamas Blummer Content-Type: multipart/signed; boundary="Apple-Mail=_CA7AD12E-D992-453B-8206-F765A5ED620F"; protocol="application/pgp-signature"; micalg=pgp-sha512 Message-Id: <417518B4-1E4D-4467-BC87-95C9EAF0C599@bitsofproof.com> Mime-Version: 1.0 (Mac OS X Mail 7.3 \(1878.6\)) Date: Wed, 10 Dec 2014 08:35:01 +0100 References: <54876653.4020403@certimix.com> <548769FA.5040406@bluematt.me> To: Bitcoin Dev In-Reply-To: X-Mailer: Apple Mail (2.1878.6) X-bounce-key: webpack.hosteurope.de; tamas@bitsofproof.com; 1418196917; 7fd78ead; X-Spam-Score: 1.1 (+) X-Spam-Report: Spam Filtering performed by mx.sourceforge.net. See http://spamassassin.org/tag/ for more details. -0.0 RCVD_IN_DNSWL_NONE RBL: Sender listed at http://www.dnswl.org/, no trust [80.237.132.66 listed in list.dnswl.org] 1.1 TRACKER_ID BODY: Incorporates a tracking ID number X-Headers-End: 1Xybnp-0006zl-45 Subject: [Bitcoin-development] Merged mining a side chain with proof of burn on parent chain X-BeenThere: bitcoin-development@lists.sourceforge.net X-Mailman-Version: 2.1.9 Precedence: list List-Id: List-Unsubscribe: , List-Archive: List-Post: List-Help: List-Subscribe: , X-List-Received-Date: Wed, 10 Dec 2014 07:35:19 -0000 --Apple-Mail=_CA7AD12E-D992-453B-8206-F765A5ED620F Content-Transfer-Encoding: quoted-printable Content-Type: text/plain; charset=windows-1252 We spend scarce resources external to the digital realm to create = Bitcoin. Real world sacrifice is needed to avoid =93nothing at stake=94 = and sybil attacks. With Bitcoin we now have a scarce resource within the = digital realm, so it appeals my intuition to re-use it for sacrifice = instead of linking again an external, real world resource.=20 In following I outline a new mining algorithm for side chains, that burn = Bitcoins to secure them. The side chain block validity rules would require that a transaction on = the Bitcoin block chain provably destroys Bitcoins with an OP_RET = output, that contains the hash of the block header of the side chain. To = also introduce a lottery, the burn transaction=92s hash is required to = satisfy some function of the block hash it was included in on the = Bitcoin block chain. For example modulo m of the burn transaction hash = must match modulo m of the block hash, that is not known in advance. Those who want to mine the side chain will assemble side chain block = candidates that comply the rules of the side chain, then a Bitcoin = transaction burning to the hash of the block candidate and submit it to = the Bitcoin network. Should he burn transaction be included into the = Bitcoin block chain and the Bitcoin block=92s hash satisfy the lottery = criteria, then the block candidate can be submitted to extend the side = chain. A side chain block header sequence would be accepted as side chain trunk = if a sequence of Bitcoin SPV proofs for burn transactions prove, that = linked blocks have the highest cumulative burn, if compared to = alternative sequences.=20 The Bitcoin miner will include burn transactions because they offer = Bitcoin fees. Bitcoin miner can not selectively block side chains since = the hashes associated with the burn do not disclose which side chain or = other project they are for. Here you have a =93merged mining=94 that = does not need Bitcoin miner support or even consent. Mining difficulty of the side chain could be adjusted by stepping up the = required burn and/or hardening the criteria that links a burn proof = transaction with the bitcoin block hash it is included in. The difficulty to mine with burn would be dynamic and would also imply a = floating exchange rate between Bitcoin and the side coin. Tamas Blummer Bits of Proof 00000000000000001172380e63346e3e915b52fcbae838ba958948ac9aa85edd --Apple-Mail=_CA7AD12E-D992-453B-8206-F765A5ED620F Content-Transfer-Encoding: 7bit Content-Disposition: attachment; filename=signature.asc Content-Type: application/pgp-signature; name=signature.asc Content-Description: Message signed with OpenPGP using GPGMail -----BEGIN PGP SIGNATURE----- Comment: GPGTools - https://gpgtools.org iQEcBAEBCgAGBQJUh/elAAoJEPZykcUXcTkc+IMH/1rP8HyZn/0Z2MF+KZgfsX54 HV5FKXz004v9o9DwAl4pHVYFmVKqlXpQG0a3X7mBRxuTmgaLt48LM00H3krF9aqS COkmWsfk3Jc+yEWdDW7sL+/2xLHhCCtE4uLmaDESvD/76QVbETw7fX5mrj5vcomF 7Tq0HhNc3i72ne3QcUCMKfBFKpOmibl90IfahReQEUOeltNYZUhzTIvV0AcDMVbi GbSNj9uoaKDZaOy7m9AGiZQUlGKi9PTOR+quW4X3AIi1+acv5rimIHiJF99IUV2F XXFHhnLfyuHuyY8HWYKVuLFevSfBqRDyttM9xHP05G9FIMUz8JiDdfinzAjWnPk= =bn+Z -----END PGP SIGNATURE----- --Apple-Mail=_CA7AD12E-D992-453B-8206-F765A5ED620F--