Re: [Bitcoin-development] F2Pool has enabled full replace-by-fee

[Chun Wang <1240902@gmail.com>]

Before F2Pool's launch, I performed probably the only successful
bitcoin double spend in the March 2013 fork without any mining power.
[ https://bitcointalk.org/index.php?topic=152348.0 ] I know how bad
the full RBF is. We are going to switch to FSS RBF in a few hours.
Sorry.

On Fri, Jun 19, 2015 at 9:44 PM, Peter Todd <pete@petertodd.org> wrote:
> On Fri, Jun 19, 2015 at 09:33:05AM -0400, Stephen Morse wrote:
>> It is disappointing that F2Pool would enable full RBF when the safe
>> alternative, first-seen-safe RBF, is also available, especially since the
>> fees they would gain by supporting full RBF over FSS RBF would likely be
>> negligible. Did they consider using FSS RBF instead?
>
> Specifically the following is what I told them:
>
>> We are
>> interested in the replace-by-fee patch, but I am not following the
>> development closely, more background info is needed, like what the
>> difference between standard and zeroconf versions? Thanks.
>
> Great!
>
> Basically both let you replace one transaction with another that pays a
> higher fee. First-seen-safe replace-by-fee adds the additional criteria
> that all outputs of the old transaction still need to be paid by the new
> transaction, with >= as many Bitcoins. Basically, it makes sure that if
> someone was paid by tx1, then tx2 will still pay them.
>
> I've written about how wallets can use RBF and FSS-RBF to more
> efficiently use the blockchain on the bitcoin-development mailing list:
>
> http://www.mail-archive.com/bitcoin-development@lists.sourceforge.net/msg07813.html
> http://www.mail-archive.com/bitcoin-development@lists.sourceforge.net/msg07829.html
>
> Basically, for the purpose of increasing fees, RBF is something like %50
> cheaper than CPFP, and FSS-RBF is something like %25 cheaper.
>
> In addition, for ease of implementation, my new FSS-RBF has a number of
> other restrictions. For instance, you can't replace multiple
> transactions with one, you can't replace a transaction whose outputs
> have already been spent, you can't replace a transaction with one that
> spends additional unconfirmed inputs, etc. These restrictions aren't
> "set in stone", but they do make the code simpler and less likely to
> have bugs.
>
> In comparison my previous standard RBF patch can replace multiple
> transactions with one, can replace long chains of transactions, etc.
> It's willing to do more computation before deciding if a transaction
> should be replaced, with more complex logic; it probably has a higher
> chance of having a bug or DoS attack.
>
> You've probably seen the huge controversy around zeroconf with regard to
> standard replace-by-fee. While FSS RBF doesn't make zeroconf any safer,
> it also doesn't make it any more dangerous, so politically with regard
> to zeroconf it makes no difference. You *can* still use it doublespend
> by taking advantage of how different transactions are accepted
> differently, but that's true of *every* change we've ever made to
> Bitcoin Core - by upgrading to v0.10 from v0.9 you've also "broken"
> zeroconf in the same way.
>
>
> Having said that... honestly, zeroconf is pretty broken already. Only
> with pretty heroic measures like connecting to a significant fraction of
> the Bitcoin network at once, as well as connecting to getblocktemplate
> supporting miners to figure out what transactions are being mined, are
> services having any hope of avoiding getting ripped off. For the average
> user their wallets do a terrible job of showing whether or not an
> unconfirmed transaction will go through. For example, Schildbach's
> Bitcoin wallet for Android has no code at all to detect double-spends
> until they get mined, and I've been able to trick it into showing
> completely invalid transactions. In fact, currently Bitcoin XT will
> relay invalid transactions that are doublepsends, and Schildbach's
> wallet displays them as valid, unconfirmed, payments. It's really no
> surprise to me that nearly no-one in the Bitcoin ecosystem accepts
> unconfirmed transactions without some kind of protection that doesn't
> rely on first-seen-safe mempool behavior. For instance, many ATM's these
> days know who their customers are due to AML requirements, so while you
> can deposit Bitcoins and get your funds instantly, the protection for
> the ATM operator is that they can go to the police if you rip them off;
> I've spoken to ATM operators who didn't do this who've lost hundreds or
> even thousands of dollars before giving up on zeroconf.
>
> My big worry with zeroconf is a service like Coinbase or Shapeshift
> coming to rely on it, and then attempting to secure it by gaining
> control of a majority of hashing power. For instance, if Coinbase had
> contracts with 80% of the Bitcoin hashing power to guarantee their
> transactions would get mined, but 20% of the hashing power didn't sign
> up, then the only way to guarantee their transactions could be for the
> 80% to not build on blocks containing doublespends by the 20%. There's
> no way in a decentralized network to come to consensus about what
> transactions are or are not valid without mining itself, so you could
> end up in a situation where unless you're part of one of the big pools
> you can't reliably mine at all because your blocks may get rejected for
> containing doublespends.
>
> One of my goal with standard replace-by-fee is to prevent this scenario
> by forcing merchants and others to implement ways of accepting zeroconf
> transactions safely that work in a decentralized environment regardless
> of what miners do; we have a stronger and safer Bitcoin ecosystem if
> we're relying on math rather than trust to secure our zeroconf
> transactions. We're also being more honest to users, who right now often
> have the very wrong impression that unconfirmed transactions are safe to
> accept - this does get people ripped off all too often!
>
>
> Anyway, sorry for the rant! FWIW I updated my FSS-RBF patch and am
> waiting to get some feedback:
>
>     https://github.com/bitcoin/bitcoin/pull/6176
>
> Suhas Daftuar did find a pretty serious bug in it, now fixed. I'm
> working on porting it to v0.10.2, and once that's done I'm going to put
> up a bounty for anyone who can find a DoS attack in the patch. If no-one
> claims the bounty after a week or two I think I'll start feeling
> confident about using it in production.
>
>
> --
> 'peter'[:-1]@petertodd.org
> 000000000000000003188926be14e5fbe2f8f9c63c9fb8e2ba4b14ab04f1c9ab
>
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