From mboxrd@z Thu Jan 1 00:00:00 1970 Return-Path: Received: from smtp1.linuxfoundation.org (smtp1.linux-foundation.org [172.17.192.35]) by mail.linuxfoundation.org (Postfix) with ESMTPS id 67E2EACD for ; Thu, 23 May 2019 17:42:40 +0000 (UTC) X-Greylist: whitelisted by SQLgrey-1.7.6 Received: from mail-wr1-f53.google.com (mail-wr1-f53.google.com [209.85.221.53]) by smtp1.linuxfoundation.org (Postfix) with ESMTPS id 23BC883A for ; Thu, 23 May 2019 17:42:39 +0000 (UTC) Received: by mail-wr1-f53.google.com with SMTP id b18so7180167wrq.12 for ; Thu, 23 May 2019 10:42:38 -0700 (PDT) DKIM-Signature: v=1; a=rsa-sha256; c=relaxed/relaxed; d=gmail.com; s=20161025; h=from:content-transfer-encoding:mime-version:subject:date:references :to:in-reply-to:message-id; bh=gTo2OaqCN7rf9BkbdEtxmgDNmoekEqohO1wH/cf28CE=; b=ijFE2soGurYXlz7xPcYNR0jEIWJSpmSoA//yOvh+y39NXk6QxqNZCRIY+IC89JtW7M A0dJTL+L9f023IgMNDF3g2NsnjjfGN++r9nk201qkBREpvYepIWBhwfsmq5nGL/JgGwt GCZDEN3MN7Pj7jnpSoPJA6evaMt63ugtagfnVrip57HSB3lECFB8bDToXuiYsGYTRhFM DiAm3sys11bd8qQyXxii0E97iOoec5nkdmoVHrCaQxgoUH7VAQLN2eGX24BcqoTVs3bV lHh8iwqJAZRfwGk8LZ4CzprVp2pz+L9v+6hHHcr3rpe20pkB58MfodmQ7yoQ3aKxGFRX B6PQ== X-Google-DKIM-Signature: v=1; a=rsa-sha256; c=relaxed/relaxed; d=1e100.net; s=20161025; h=x-gm-message-state:from:content-transfer-encoding:mime-version :subject:date:references:to:in-reply-to:message-id; bh=gTo2OaqCN7rf9BkbdEtxmgDNmoekEqohO1wH/cf28CE=; b=el0MMii3beZCpONDR/JgDudcjONtk4iUY9PXhsVAGMWcn395ews+7ot+/nU8aTbDBI FJB3uku+yLcD6iUQTyIcTdyqRsl264K0OQflOec6oe8ItffQDeEvaTu7gxsGP+RQPoOV XFruAAYKIrtucZvkRKD3Y56MTq8ZwUybLoqtd1g9uiqczbXdAeYKgapO8xJjgl4W29K7 cJpNa+20v/gW5yRcwefzsl7QdV5QcNDDGyV8ipLf69P2ywfVJCth5zApZ+JMV31RUW0o NtnzqRjWFQbFIq7CDCZsWBbx8LPoWmP7Ewi7FdHGEGcU/QkLOoVa3pZk1iSJnoLVHl0M jang== X-Gm-Message-State: APjAAAWm9oHYmHfKVh71k6Xk0Qq4Gt9yZxgq5ozT7EFNacv6wWp7l2cB Du+3BG5p6GY3xdCzS5B5gz91FxoUL7w= X-Google-Smtp-Source: APXvYqzDOJmp+V45BHMqx/mYtXR66PeeoQGFxjOg5WGHHXjPujruv4UuTOgjKdiapQPpz9SoYUrrOQ== X-Received: by 2002:a5d:4f0b:: with SMTP id c11mr23071228wru.35.1558633357518; Thu, 23 May 2019 10:42:37 -0700 (PDT) Received: from p200300dd67196b11c120770d4d53396f.dip0.t-ipconnect.de (p200300DD67196B11C120770D4D53396F.dip0.t-ipconnect.de. [2003:dd:6719:6b11:c120:770d:4d53:396f]) by smtp.gmail.com with ESMTPSA id h8sm362961wmf.5.2019.05.23.10.42.36 for (version=TLS1_2 cipher=ECDHE-RSA-AES128-GCM-SHA256 bits=128/128); Thu, 23 May 2019 10:42:36 -0700 (PDT) From: Tamas Blummer Content-Type: text/plain; charset=utf-8 Content-Transfer-Encoding: quoted-printable Mime-Version: 1.0 (Mac OS X Mail 10.3 \(3273\)) Date: Thu, 23 May 2019 19:42:35 +0200 References: To: Bitcoin Protocol Discussion In-Reply-To: Message-Id: <42F53D61-BAAE-464F-BB0D-4D0CDC554D9A@gmail.com> X-Mailer: Apple Mail (2.3273) X-Spam-Status: No, score=-2.0 required=5.0 tests=BAYES_00,DKIM_SIGNED, DKIM_VALID, DKIM_VALID_AU, FREEMAIL_FROM, RCVD_IN_DNSWL_NONE autolearn=ham version=3.3.1 X-Spam-Checker-Version: SpamAssassin 3.3.1 (2010-03-16) on smtp1.linux-foundation.org X-Mailman-Approved-At: Thu, 23 May 2019 18:31:23 +0000 Subject: [bitcoin-dev] OP_DIFFICULTY to enable difficulty hedges (bets) without an oracle and 3rd party. X-BeenThere: bitcoin-dev@lists.linuxfoundation.org X-Mailman-Version: 2.1.12 Precedence: list List-Id: Bitcoin Protocol Discussion List-Unsubscribe: , List-Archive: List-Post: List-Help: List-Subscribe: , X-List-Received-Date: Thu, 23 May 2019 17:42:40 -0000 Difficulty change has profound impact on miner=E2=80=99s production = thereby introduce the biggest risk while considering an investment. Commodity markets offer futures and options to hedge risks on = traditional trading venues. Some might soon list difficulty futures. I think we could do much better than them natively within Bitcoin. A better solution could be a transaction that uses nLocktime denominated = in block height, such that it is valid after the difficulty adjusted = block in the future. A new OP_DIFFICULTY opcode would put onto stack the value of difficulty = for the block the transaction is included into.=20 The output script may then decide comparing that value with a strike = which key can spend it.=20 The input of the transaction would be a multi-sig escrow of those who = entered the bet.=20 The winner would broadcast.=20 Once signed by both the transaction would not carry any counterparty = risk and would not need an oracle to settle according to the bet. I plan to draft a BIP for this as I think this opcode would serve = significant economic interest of Bitcoin economy, and is compatible with = Bitcoin=E2=80=99s aim not to introduce 3rd party to do so. Do you see a fault in this proposal or want to contribute? Tamas Blummer=20