[bitcoin-dev] Solving the Scalability Problem Part II - Adam Shem-Tov

[Adam Tamir Shem-Tov <tshachaf@gmail.com>]

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<B>Solving the Scalability Problem Part II</B>
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<BR>
In the previous post I showed a way to minimize the blocks on the block
chain, to lower the amount of space it takes on the hard drive, without
losing any relevant information.
I added a note, saying that the transaction chain needs to be rewritten,
but I did not give much detail to it.<BR>
Here is how that would work:<BR>
<B>The Genesis Account:</B>
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The problem with changing the transaction and block chain, is that it
cannot be done without knowing the private key of the sender of the of the
funds for each account. There is however a way to circumvent that problem.
That is to create a special account called the “Genesis Account”, this
account’s Private Key and Public Key will be available to everyone.<BR>
But this account will not be able to send or receive any funds in a normal
block, it will be blocked--blacklisted. So no one can intentionally use it.
The only time this account will be used is in the pruning block, a.k.a
Exodus Block.<BR>
When creating the new pruned block chain and transaction chain, all the
funds that are now in accounts must be legitimate, and it would be
difficult to legitimize them unless they were sent from a legitimate
account, with a public key, and a private key which can be verified. That
is where the Genesis account comes in. All funds in the Exodus Block will
show as though they originated and were sent from the Genesis Account using
its privatekey to generate each transaction.<BR>
The funds which are sent, must match exactly the funds existing in the most
updated ledger in block 1000 (the last block as stated in my previous
post).<BR>
In this way the Exodus Block can be verified, and the Genesis Account
cannot give free money to anyway, because if someone tried to, it would
fail verification.<BR>

<BR>
Now the next problem is that the number of Bitcoins keeps expanding and so
the funds in the Genesis Account need to expand as well. That can be done
by showing as though this account is the account which is mining the coins,
and it will be the only account in the Exodus Block which “mines” the
coins, and receives the mining bonus. In the Exodus Block all coins mined
by the real miners will show as though they were mined by Genesis and sent
to the miners through a regular transaction.

<BR>

Adam Shem-Tov

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