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charset="Windows-1252" Content-Transfer-Encoding: quoted-printable > By doing this you're significantly changing the economic incentives behin= d bitcoin mining. How can you reliably invest in hardware if you have no id= ea when or if your profitability is going to be cut by 50-75% based on a wh= im? Of course, that's why this is a last resort, successfully activated only in= response to a contentious hard fork. If it succeeds just once it should he= lp prevent the same situation occurring in the future. > You may also inadvertently create an entirely new attack vector if 50-75%= of the SHA256 hardware is taken offline and purchased by an entity who int= ends to do harm to the network. How so? If you have four proof of work methods, that 50-75% of SHA256 hashp= ower would equate to 13-18% of total hashpower. If you can harm the network= with this much hashpower bitcoin was DOA. ________________________________ From: Andrew Johnson Sent: Monday, March 20, 2017 3:38:01 PM To: Bitcoin Protocol Discussion; John Hardy Subject: Re: [bitcoin-dev] Malice Reactive Proof of Work Additions (MR POWA= ): Protecting Bitcoin from malicious miners By doing this you're significantly changing the economic incentives behind = bitcoin mining. How can you reliably invest in hardware if you have no idea= when or if your profitability is going to be cut by 50-75% based on a whim= ? You may also inadvertently create an entirely new attack vector if 50-75% o= f the SHA256 hardware is taken offline and purchased by an entity who inten= ds to do harm to the network. Bitcoin only works if most miners are honest, this has been known since the= beginning. On Mon, Mar 20, 2017 at 9:50 AM John Hardy via bitcoin-dev > wrote= : I=92m very worried about the state of miner centralisation in Bitcoin. I always felt the centralising effects of ASIC manufacturing would resolve = themselves once the first mover advantage had been exhausted and the indust= ry had the opportunity to mature. I had always assumed initial centralisation would be harmless since miners = have no incentive to harm the network. This does not consider the risk of a= single entity with sufficient power and either poor, malicious or coerced = decision making. I now believe that such centralisation poses a huge risk t= o the security of Bitcoin and preemptive action needs to be taken to protec= t the network from malicious actions by any party able to exert influence o= ver a substantial portion of SHA256 hardware. Inspired by UASF, I believe we should implement a Malicious miner Reactive = Proof of Work Additions (MR POWA). This would be a hard fork activated in response to a malicious attempt by a= hashpower majority to introduce a contentious hard fork. The activation would occur once a fork was detected violating protocol (lik= ely oversize blocks) with a majority of hashpower. The threshold and durati= on for activation would need to be carefully considered. I don=92t think we should eliminate SHA256 as a hashing method and change P= OW entirely. That would be throwing the baby out with the bathwater and hur= t the non-malicious miners who have invested in hardware, making it harder = to gain their support. Instead I believe we should introduce multiple new proofs of work that are = already established and proven within existing altcoin implementations. As = an example we could add Scrypt, Ethash and Equihash. Much of the code and m= ining infrastructure already exists. Diversification of hardware (a mix of = CPU and memory intensive methods) would also be positive for decentralisati= on. Initial difficulty could simply be an estimated portion of existing inf= rastructure. This example would mean 4 proofs of work with 40 minute block target diffic= ulty for each. There could also be a rule that two different proofs of work= must find a block before a method can start hashing again. This means ther= e would only be 50% of hardware hashing at a time, and a sudden gain or dro= p in hashpower from a particular method does not dramatically impact the fu= nctioning of the network between difficulty adjustments. This also adds pro= tection from attacks by the malicious SHA256 hashpower which could even be = required to wait until all other methods have found a block before being al= lowed to hash again. 50% hashing time would mean that the cost of electricity in relation to har= dware would fall by 50%, reducing some of the centralising impact of subsid= ised or inexpensive electricity in some regions over others. Such a hard fork could also, counter-intuitively, introduce a block size in= crease since while we=92re hard forking it makes sense to minimise the numb= er of future hard forks where possible. It could also activate SegWit if it= hasn=92t already. The beauty of this method is that it creates a huge risk to any malicious a= ctor trying to abuse their position. Ideally, MR POWA would just serve as a= deterrent and never activate. If consensus were to form around a hard fork in the future nodes would be a= ble to upgrade and MR POWA, while automatically activating on non-upgraded = nodes, would be of no economic significance: a vestigial chain immediately = abandoned with no miner incentive. I think this would be a great way to help prevent malicious use of hashpowe= r to harm the network. This is the beauty of Bitcoin: for any road block th= at emerges the economic majority can always find a way around. _______________________________________________ bitcoin-dev mailing list bitcoin-dev@lists.linuxfoundation.org https://lists.linuxfoundation.org/mailman/listinfo/bitcoin-dev -- Andrew Johnson --_000_BL2PR03MB435F8B16B15BA7E0992DCA5EE3A0BL2PR03MB435namprd_ Content-Type: text/html; charset="Windows-1252" Content-Transfer-Encoding: quoted-printable

By do= ing this you're significantly changing the economic incentives behind bitco= in mining. How can you reliably invest in hardware if you have no idea when= or if your profitability is going to be cut by 50-75% based on a whim?


Of course, that= 's why this is a last resort, successfully activated only in response to a = contentious hard fork. If it succeeds just once it should help prevent the = same situation occurring in the future.


You may also inadverten= tly create an entirely new attack vector if 50-75% of the SHA256 hardware i= s taken offline and purchased by an entity who intends to do harm to the network. 

How so? If you have four proof of work methods, that 50-75% of SHA256 hashp= ower would equate to 13-18% of total hashpower. If you can harm the network= with this much hashpower bitcoin was DOA.


From: Andrew Johnson <an= drew.johnson83@gmail.com>
Sent: Monday, March 20, 2017 3:38:01 PM
To: Bitcoin Protocol Discussion; John Hardy
Subject: Re: [bitcoin-dev] Malice Reactive Proof of Work Additions (= MR POWA): Protecting Bitcoin from malicious miners
 
By doing this you're significantly changing the economic incentives be= hind bitcoin mining. How can you reliably invest in hardware if you have no= idea when or if your profitability is going to be cut by 50-75% based on a= whim?

You may also inadvertently create an entirely new attack vector if 50-= 75% of the SHA256 hardware is taken offline and purchased by an entity who = intends to do harm to the network. 

Bitcoin only works if most miners are honest, this has been known sinc= e the beginning. 

On Mon, Mar 20, 2017 at 9:50 AM John Hardy via bitcoin-dev <bitcoin-dev@lists.linuxfo= undation.org> wrote:

I=92m very worried about the state of miner centra= lisation in Bitcoin.

I always felt the centralising effects of ASIC man= ufacturing would resolve themselves once the first mover advantage had been= exhausted and the industry had the opportunity to mature.

I had always assumed initial centralisation would = be harmless since miners have no incentive to harm the network. This does n= ot consider the risk of a single entity with sufficient power and either po= or, malicious or coerced decision making. I now believe that such centralisation poses a huge risk to the se= curity of Bitcoin and preemptive action needs to be taken to protect the ne= twork from malicious actions by any party able to exert influence over a su= bstantial portion of SHA256 hardware.

Inspired by UASF, I believe we should implement a = Malicious miner Reactive Proof of Work Additions (MR POWA).

This would be a hard fork activated in response to= a malicious attempt by a hashpower majority to introduce a contentious har= d fork.

The activation would occur once a fork was detecte= d violating protocol (likely oversize blocks) with a majority of hashpower.= The threshold and duration for activation would need to be carefully consi= dered.

I don=92t think we should eliminate SHA256 as a ha= shing method and change POW entirely. That would be throwing the baby out w= ith the bathwater and hurt the non-malicious miners who have invested in ha= rdware, making it harder to gain their support.

Instead I believe we should introduce multiple new= proofs of work that are already established and proven within existing alt= coin implementations. As an example we could add Scrypt, Ethash and Equihas= h. Much of the code and mining infrastructure already exists. Diversification of hardware (a mix of CPU and memory inten= sive methods) would also be positive for decentralisation. Initial difficul= ty could simply be an estimated portion of existing infrastructure.

This example would mean 4 proofs of work with 40 m= inute block target difficulty for each. There could also be a rule that two= different proofs of work must find a block before a method can start hashi= ng again. This means there would only be 50% of hardware hashing at a time, and a sudden gain or drop in hashpow= er from a particular method does not dramatically impact the functioning of= the network between difficulty adjustments. This also adds protection from= attacks by the malicious SHA256 hashpower which could even be required to wait until all other methods hav= e found a block before being allowed to hash again.

50% hashing time would mean that the cost of elect= ricity in relation to hardware would fall by 50%, reducing some of the cent= ralising impact of subsidised or inexpensive electricity in some regions ov= er others.

Such a hard fork could also, counter-intuitively, = introduce a block size increase since while we=92re hard forking it makes s= ense to minimise the number of future hard forks where possible. It could a= lso activate SegWit if it hasn=92t already.

The beauty of this method is that it creates a hug= e risk to any malicious actor trying to abuse their position. Ideally, MR P= OWA would just serve as a deterrent and never activate.

If consensus were to form around a hard fork in th= e future nodes would be able to upgrade and MR POWA, while automatically ac= tivating on non-upgraded nodes, would be of no economic significance: a ves= tigial chain immediately abandoned with no miner incentive.

I think this would be a great way to help prevent = malicious use of hashpower to harm the network. This is the beauty of Bitco= in: for any road block that emerges the economic majority can always find a= way around.

_______________________________________________
bitcoin-dev mailing list
bitcoin-dev@lists.linuxfoundation.org
https://lists.linu= xfoundation.org/mailman/listinfo/bitcoin-dev
--
Andrew Johnson

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