* Re: [bitcoin-dev] A Proposed Compromise to the Block Size Limit @ 2015-06-28 5:34 Raystonn 2015-06-28 10:07 ` Adam Back 0 siblings, 1 reply; 43+ messages in thread From: Raystonn @ 2015-06-28 5:34 UTC (permalink / raw) To: Peter Todd; +Cc: bitcoin-dev [-- Attachment #1: Type: text/html, Size: 3157 bytes --] ^ permalink raw reply [flat|nested] 43+ messages in thread
* Re: [bitcoin-dev] A Proposed Compromise to the Block Size Limit 2015-06-28 5:34 [bitcoin-dev] A Proposed Compromise to the Block Size Limit Raystonn @ 2015-06-28 10:07 ` Adam Back 2015-06-28 10:29 ` Benjamin 2015-06-28 12:32 ` Milly Bitcoin 0 siblings, 2 replies; 43+ messages in thread From: Adam Back @ 2015-06-28 10:07 UTC (permalink / raw) To: Raystonn; +Cc: bitcoin-dev On 28 June 2015 at 07:34, Raystonn <raystonn@hotmail.com> wrote: > nodes are limited to 133 connections. This is 8 outgoing connections and > 125 incoming connections. [...] Once your full node reaches 133 connections, > it will see no further increase in load [...] Only transaction rate will affect the > load on your node. The total system cost is more relevant, or total cost per user. I think you are stuck on the O( t * m ) t = tx, m = nodes thinking. Total cost per user is increasing. That better scaling algorithms need to be found. That's why people are working on lightning-like systems. > fear larger blocks based on an assumption of exponential growth of work, which just > isn't the case. People have been explaining quadratic system level increase, which is not exponential, wrong assumption. > Decentralisation is planned to scale down once the 133 connection limit is > hit. Like it or not, this is the current state of the code. No people are not assuming decentralisation would decrease. They are assuming the number of economically dependent full nodes would increase, that's where the O( n^2 ) comes from! If we assume say c= 0.1% of users will run full nodes, and users make some small-world assumed number of transactions that doesnt increase greatly as more users are added to the network, then O( t * m ) => O( n^2 ). Seeing decentralisation failing isn't a useful direction as Bitcoin depends on decentralisation for most of it's useful security properties. People running around saying great lets centralise Bitcoin and scale it, are not working on Bitcoin. They may more usefully go work on competing systems without proof of work as that's where this line of reasoning ends up. There are companies working on such things. Some of them support Bitcoin IOUs. Some of them have job openings. We can improve decentralisation, and use bandwidth and relay improvements to get some increase in throughput. But starting a direction of simplistic thinking about an ever increasing block-size mode of thinking is destructive and not Bitcoin. If you want to do that, you need to do it in an offchain system. You cant build on sand so your offchain system wont be useful if Bitcoin doesnt have reasonable decentralisation to retain useful meaning. Hence lightning. There are existing layer 2 things that have on-chain netting. Go work on one of those. But people need to understand the constraints and stop arguing to break Bitcoin to "scale". It's too simplistic. Even Gavin's proposal is not trying to do that, hence reference to Nielsen's law. His parameters are too high for too long for basic safety or prudence, but the general idea to reclaim some throughput from network advances, is reasonable. Also decentralisation is key, and that is something we can improve with pooling protocols to phase out the artificial centralisation. We can also educate people to use fullnode they economically depend on to keep the full to SPV ratio reasonable which is also needed for security. Adam ^ permalink raw reply [flat|nested] 43+ messages in thread
* Re: [bitcoin-dev] A Proposed Compromise to the Block Size Limit 2015-06-28 10:07 ` Adam Back @ 2015-06-28 10:29 ` Benjamin 2015-06-28 12:37 ` Adam Back 2015-06-28 12:32 ` Milly Bitcoin 1 sibling, 1 reply; 43+ messages in thread From: Benjamin @ 2015-06-28 10:29 UTC (permalink / raw) To: Adam Back; +Cc: bitcoin-dev [-- Attachment #1: Type: text/plain, Size: 598 bytes --] I agree that naive scaling will likely lead to bad outcomes. They might have the advantage though, as this would mean not changing Bitcoin. Level2 and Lightning is not well defined. If you move money to a third party, even if it is within the constrained of a locked contract, then I don't think that will solve the issues. Blockchain does not know about offchain and moving between offchain and onchain requires liquidity and a pricing mechanism. That is exactly the problem with side-chains. If you have off-chain transactions on an exchange, they are ID'ed in their system, subject to KYC/AML. [-- Attachment #2: Type: text/html, Size: 694 bytes --] ^ permalink raw reply [flat|nested] 43+ messages in thread
* Re: [bitcoin-dev] A Proposed Compromise to the Block Size Limit 2015-06-28 10:29 ` Benjamin @ 2015-06-28 12:37 ` Adam Back 2015-06-28 16:32 ` Raystonn . 0 siblings, 1 reply; 43+ messages in thread From: Adam Back @ 2015-06-28 12:37 UTC (permalink / raw) To: Benjamin; +Cc: bitcoin-dev On 28 June 2015 at 12:29, Benjamin <benjamin.l.cordes@gmail.com> wrote: > I agree that naive scaling will likely lead to bad outcomes. They might have > the advantage though, as this would mean not changing Bitcoin. Sure we can work incrementally and carefully, and this is exactly what Bitcoin has been doing, and *must* do for safety and security for the last 5 years! That doesnt mean that useful serious improvements have not been made. > Level2 and Lightning is not well defined. If you move money to a third > party, even if it is within the constrained of a locked contract, then I > don't think that will solve the issues. I think you misunderstand how lightning works. Every lightning transaction *is* a valid bitcoin transaction that could be posted to the Bitcoin network to reclaim funds if a hub went permanently offline. It is just that while the hubs involved remain in service, there is no need to do so. This is why it has been described as a (write coalescing) write cache layer for Bitcoin.> I believe people expect lightning to be peer 2 peer like bitcoin. Adam ^ permalink raw reply [flat|nested] 43+ messages in thread
* Re: [bitcoin-dev] A Proposed Compromise to the Block Size Limit 2015-06-28 12:37 ` Adam Back @ 2015-06-28 16:32 ` Raystonn . 2015-06-28 17:12 ` Mark Friedenbach 0 siblings, 1 reply; 43+ messages in thread From: Raystonn . @ 2015-06-28 16:32 UTC (permalink / raw) To: Adam Back, Benjamin; +Cc: bitcoin-dev Write coalescing works fine when you have multiple writes headed to the same (contiguous) location. Will lightning be useful when we have more unique transactions being sent to different addresses, and not just multiple transactions between the same sender and address? I have doubts. -----Original Message----- From: Adam Back Sent: Sunday, June 28, 2015 5:37 AM To: Benjamin Cc: bitcoin-dev@lists.linuxfoundation.org Subject: Re: [bitcoin-dev] A Proposed Compromise to the Block Size Limit On 28 June 2015 at 12:29, Benjamin <benjamin.l.cordes@gmail.com> wrote: > I agree that naive scaling will likely lead to bad outcomes. They might > have > the advantage though, as this would mean not changing Bitcoin. Sure we can work incrementally and carefully, and this is exactly what Bitcoin has been doing, and *must* do for safety and security for the last 5 years! That doesnt mean that useful serious improvements have not been made. > Level2 and Lightning is not well defined. If you move money to a third > party, even if it is within the constrained of a locked contract, then I > don't think that will solve the issues. I think you misunderstand how lightning works. Every lightning transaction *is* a valid bitcoin transaction that could be posted to the Bitcoin network to reclaim funds if a hub went permanently offline. It is just that while the hubs involved remain in service, there is no need to do so. This is why it has been described as a (write coalescing) write cache layer for Bitcoin.> I believe people expect lightning to be peer 2 peer like bitcoin. Adam _______________________________________________ bitcoin-dev mailing list bitcoin-dev@lists.linuxfoundation.org https://lists.linuxfoundation.org/mailman/listinfo/bitcoin-dev ^ permalink raw reply [flat|nested] 43+ messages in thread
* Re: [bitcoin-dev] A Proposed Compromise to the Block Size Limit 2015-06-28 16:32 ` Raystonn . @ 2015-06-28 17:12 ` Mark Friedenbach 2015-06-28 17:18 ` Benjamin 2015-06-28 17:29 ` Gavin Andresen 0 siblings, 2 replies; 43+ messages in thread From: Mark Friedenbach @ 2015-06-28 17:12 UTC (permalink / raw) To: Raystonn .; +Cc: bitcoin-dev [-- Attachment #1: Type: text/plain, Size: 3840 bytes --] Think in terms of participants, not addresses. A participant in the lightning network has a couple of connections to various hubs, from which the participant is able to send or receive coin. The user is able to send coins to anyone connected to the lightning network by means of an atomic transaction through any path of the network. But the only payment from them that ever hits the chain is their settlement with the hub. Imagine there was a TCP/IP data chain and corresponding lightning network. Everyone connected to the network has an "IP" channel with their ISP. Through this channel they can send data to anywhere on the network, and a traceroute shows what hops the data would take. But when settlement actually occurs all the network sees is the net amount of data that has gone through each segment -- without any context. There's no record preserved on-chain of who sent data to whom, just that X bytes went through the pipe on the way to somewhere unspecified. So it is with lightning payment networks. You open a channel with a hub and through that channel send coins to anyone accessible to the network. Channels only close when a participant needs the funds for non-lightning reasons, or when hubs need to rebalance. And when they do, observers on the chain learn nothing more than how much net coin moved across that single link. They learn nothing about where that coin eventually ended up. So back to your original question, each channel can be considered to have a pseudonymous identity, and each new channel given a new identity. Channel closures can even be coinjoin'd when the other party is cooperating. But ultimately, lightning usefully solves a problem where participants have semi-long lived payment endpoints. On Sun, Jun 28, 2015 at 9:32 AM, Raystonn . <raystonn@hotmail.com> wrote: > Write coalescing works fine when you have multiple writes headed to the > same (contiguous) location. Will lightning be useful when we have more > unique transactions being sent to different addresses, and not just > multiple transactions between the same sender and address? I have doubts. > > > -----Original Message----- From: Adam Back > Sent: Sunday, June 28, 2015 5:37 AM > To: Benjamin > Cc: bitcoin-dev@lists.linuxfoundation.org > Subject: Re: [bitcoin-dev] A Proposed Compromise to the Block Size Limit > > > On 28 June 2015 at 12:29, Benjamin <benjamin.l.cordes@gmail.com> wrote: > >> I agree that naive scaling will likely lead to bad outcomes. They might >> have >> the advantage though, as this would mean not changing Bitcoin. >> > > Sure we can work incrementally and carefully, and this is exactly what > Bitcoin has been doing, and *must* do for safety and security for the > last 5 years! > That doesnt mean that useful serious improvements have not been made. > > Level2 and Lightning is not well defined. If you move money to a third >> party, even if it is within the constrained of a locked contract, then I >> don't think that will solve the issues. >> > > I think you misunderstand how lightning works. Every lightning > transaction *is* a valid bitcoin transaction that could be posted to > the Bitcoin network to reclaim funds if a hub went permanently > offline. It is just that while the hubs involved remain in service, > there is no need to do so. This is why it has been described as a > (write coalescing) write cache layer for Bitcoin.> > > I believe people expect lightning to be peer 2 peer like bitcoin. > > Adam > _______________________________________________ > bitcoin-dev mailing list > bitcoin-dev@lists.linuxfoundation.org > https://lists.linuxfoundation.org/mailman/listinfo/bitcoin-dev > _______________________________________________ > bitcoin-dev mailing list > bitcoin-dev@lists.linuxfoundation.org > https://lists.linuxfoundation.org/mailman/listinfo/bitcoin-dev > [-- Attachment #2: Type: text/html, Size: 5125 bytes --] ^ permalink raw reply [flat|nested] 43+ messages in thread
* Re: [bitcoin-dev] A Proposed Compromise to the Block Size Limit 2015-06-28 17:12 ` Mark Friedenbach @ 2015-06-28 17:18 ` Benjamin 2015-06-28 17:29 ` Gavin Andresen 1 sibling, 0 replies; 43+ messages in thread From: Benjamin @ 2015-06-28 17:18 UTC (permalink / raw) To: Mark Friedenbach; +Cc: bitcoin-dev [-- Attachment #1: Type: text/plain, Size: 4753 bytes --] "You open a channel with a hub and through that channel send coins to anyone accessible to the network." Define hub *precisely* and you will find there are some significant problems here. a) does everyone know each other in the network? In Bitcoin transacting parties exchange keys out of band. How do I know that Alice is owner of a pubkey? I don't, and if don't know Alice I'm out of luck and can't transact with here (or trust another PKI). b) hubs need incentives. There are not going to put up collateral just for nothing. c) how is complexity reduced? I would speculate that most transactions are one-time transactions in the time frame of days. LT is a very interesting idea, but far from actual implementation. On Sun, Jun 28, 2015 at 7:12 PM, Mark Friedenbach <mark@friedenbach.org> wrote: > Think in terms of participants, not addresses. A participant in the > lightning network has a couple of connections to various hubs, from which > the participant is able to send or receive coin. The user is able to send > coins to anyone connected to the lightning network by means of an atomic > transaction through any path of the network. But the only payment from them > that ever hits the chain is their settlement with the hub. > > Imagine there was a TCP/IP data chain and corresponding lightning network. > Everyone connected to the network has an "IP" channel with their ISP. > Through this channel they can send data to anywhere on the network, and a > traceroute shows what hops the data would take. But when settlement > actually occurs all the network sees is the net amount of data that has > gone through each segment -- without any context. There's no record > preserved on-chain of who sent data to whom, just that X bytes went through > the pipe on the way to somewhere unspecified. > > So it is with lightning payment networks. You open a channel with a hub > and through that channel send coins to anyone accessible to the network. > Channels only close when a participant needs the funds for non-lightning > reasons, or when hubs need to rebalance. And when they do, observers on the > chain learn nothing more than how much net coin moved across that single > link. They learn nothing about where that coin eventually ended up. > > So back to your original question, each channel can be considered to have > a pseudonymous identity, and each new channel given a new identity. Channel > closures can even be coinjoin'd when the other party is cooperating. But > ultimately, lightning usefully solves a problem where participants have > semi-long lived payment endpoints. > > On Sun, Jun 28, 2015 at 9:32 AM, Raystonn . <raystonn@hotmail.com> wrote: > >> Write coalescing works fine when you have multiple writes headed to the >> same (contiguous) location. Will lightning be useful when we have more >> unique transactions being sent to different addresses, and not just >> multiple transactions between the same sender and address? I have doubts. >> >> >> -----Original Message----- From: Adam Back >> Sent: Sunday, June 28, 2015 5:37 AM >> To: Benjamin >> Cc: bitcoin-dev@lists.linuxfoundation.org >> Subject: Re: [bitcoin-dev] A Proposed Compromise to the Block Size Limit >> >> >> On 28 June 2015 at 12:29, Benjamin <benjamin.l.cordes@gmail.com> wrote: >> >>> I agree that naive scaling will likely lead to bad outcomes. They might >>> have >>> the advantage though, as this would mean not changing Bitcoin. >>> >> >> Sure we can work incrementally and carefully, and this is exactly what >> Bitcoin has been doing, and *must* do for safety and security for the >> last 5 years! >> That doesnt mean that useful serious improvements have not been made. >> >> Level2 and Lightning is not well defined. If you move money to a third >>> party, even if it is within the constrained of a locked contract, then I >>> don't think that will solve the issues. >>> >> >> I think you misunderstand how lightning works. Every lightning >> transaction *is* a valid bitcoin transaction that could be posted to >> the Bitcoin network to reclaim funds if a hub went permanently >> offline. It is just that while the hubs involved remain in service, >> there is no need to do so. This is why it has been described as a >> (write coalescing) write cache layer for Bitcoin.> >> >> I believe people expect lightning to be peer 2 peer like bitcoin. >> >> Adam >> _______________________________________________ >> bitcoin-dev mailing list >> bitcoin-dev@lists.linuxfoundation.org >> https://lists.linuxfoundation.org/mailman/listinfo/bitcoin-dev >> _______________________________________________ >> bitcoin-dev mailing list >> bitcoin-dev@lists.linuxfoundation.org >> https://lists.linuxfoundation.org/mailman/listinfo/bitcoin-dev >> > > [-- Attachment #2: Type: text/html, Size: 6762 bytes --] ^ permalink raw reply [flat|nested] 43+ messages in thread
* Re: [bitcoin-dev] A Proposed Compromise to the Block Size Limit 2015-06-28 17:12 ` Mark Friedenbach 2015-06-28 17:18 ` Benjamin @ 2015-06-28 17:29 ` Gavin Andresen 2015-06-28 17:45 ` Mark Friedenbach ` (3 more replies) 1 sibling, 4 replies; 43+ messages in thread From: Gavin Andresen @ 2015-06-28 17:29 UTC (permalink / raw) To: Mark Friedenbach; +Cc: bitcoin-dev [-- Attachment #1: Type: text/plain, Size: 1454 bytes --] On Sun, Jun 28, 2015 at 1:12 PM, Mark Friedenbach <mark@friedenbach.org> wrote: > But ultimately, lightning usefully solves a problem where participants > have semi-long lived payment endpoints. Very few of my own personal Bitcoin transactions fit that use-case. In fact, very few of my own personal dollar transactions fit that use-case (I suppose if I was addicted to Starbucks I'd have one of their payment cards that I topped up every once in a while, which would map nicely onto a payment channel). I suppose I could setup a payment channel with the grocery store I shop at once a week, but that would be inconvenient (I'd have to pre-fund it) and bad for my privacy. I can see how payment channels would work between big financial institutions as a settlement layer, but isn't that exactly the centralization concern that is making a lot of people worried about increasing the max block size? And if there are only a dozen or two popular hubs, that's much worse centralization-wise compared to a few thousand fully-validating Bitcoin nodes. Don't get me wrong, I think the Lightning Network is a fantastic idea and a great experiment and will likely be used for all sorts of great payment innovations (micropayments for bandwidth maybe, or maybe paying workers by the hour instead of at the end of the month). But I don't think it is a scaling solution for the types of payments the Bitcoin network is handling today. -- -- Gavin Andresen [-- Attachment #2: Type: text/html, Size: 2076 bytes --] ^ permalink raw reply [flat|nested] 43+ messages in thread
* Re: [bitcoin-dev] A Proposed Compromise to the Block Size Limit 2015-06-28 17:29 ` Gavin Andresen @ 2015-06-28 17:45 ` Mark Friedenbach 2015-06-28 17:51 ` Adam Back ` (2 subsequent siblings) 3 siblings, 0 replies; 43+ messages in thread From: Mark Friedenbach @ 2015-06-28 17:45 UTC (permalink / raw) To: Gavin Andresen; +Cc: bitcoin-dev [-- Attachment #1: Type: text/plain, Size: 1644 bytes --] Gavin, do you use a debit card or credit card? Then you do fit that use case. When you buy a coffee at Starbucks, it is your bank that pays Starbuck's bank. So it is with micropayment hubs. On Sun, Jun 28, 2015 at 1:12 PM, Mark Friedenbach <mark@friedenbach.org> wrote: > But ultimately, lightning usefully solves a problem where participants > have semi-long lived payment endpoints. Very few of my own personal Bitcoin transactions fit that use-case. In fact, very few of my own personal dollar transactions fit that use-case (I suppose if I was addicted to Starbucks I'd have one of their payment cards that I topped up every once in a while, which would map nicely onto a payment channel). I suppose I could setup a payment channel with the grocery store I shop at once a week, but that would be inconvenient (I'd have to pre-fund it) and bad for my privacy. I can see how payment channels would work between big financial institutions as a settlement layer, but isn't that exactly the centralization concern that is making a lot of people worried about increasing the max block size? And if there are only a dozen or two popular hubs, that's much worse centralization-wise compared to a few thousand fully-validating Bitcoin nodes. Don't get me wrong, I think the Lightning Network is a fantastic idea and a great experiment and will likely be used for all sorts of great payment innovations (micropayments for bandwidth maybe, or maybe paying workers by the hour instead of at the end of the month). But I don't think it is a scaling solution for the types of payments the Bitcoin network is handling today. -- -- Gavin Andresen [-- Attachment #2: Type: text/html, Size: 2363 bytes --] ^ permalink raw reply [flat|nested] 43+ messages in thread
* Re: [bitcoin-dev] A Proposed Compromise to the Block Size Limit 2015-06-28 17:29 ` Gavin Andresen 2015-06-28 17:45 ` Mark Friedenbach @ 2015-06-28 17:51 ` Adam Back 2015-06-28 18:58 ` Adam Back 2015-06-28 17:53 ` Jorge Timón 2015-06-28 19:22 ` Andrew Lapp 3 siblings, 1 reply; 43+ messages in thread From: Adam Back @ 2015-06-28 17:51 UTC (permalink / raw) To: Gavin Andresen; +Cc: bitcoin-dev On Sun, Jun 28, 2015 at 1:12 PM, Mark Friedenbach <mark@friedenbach.org> wrote: > But ultimately, lightning usefully solves a problem where participants have semi-long lived payment endpoints. Recipients do benefit from keeping connections to hubs because if a hub goes away or a user abandons a hub that tends to generate new on-chain traffic for balance reclaim, and new channel establishment, as we understand the limits so far. On 28 June 2015 at 19:29, Gavin Andresen <gavinandresen@gmail.com> wrote: > Very few of my own personal Bitcoin transactions fit that use-case. I believe Mark is talking about the one hop (direct) connections benefits from being long-lived; the payment destination is not restricted in the same way. It's more like having a static IP address with your ISP, that doesnt stop you reaching anywhere on the internet. Say the Lightning Network has an average fan out of 10, now subject to capital and rebalancing flows in the network you can pay anyone of a billion people in 9 hops. Maybe the fanout is lumpy, with some bigger hubs - that just serves to reduce the number of hops. Maybe there are some capitalisation limits, that is dealt with by negative fees and recirculation (more on that below) or failing that recapitalisation on-chain. Some people assume that the hub will run out of capitalisation on a given channel, however if people and hubs retain redundant channels they can be paid to rebalance channels, and even users can be paid by other users if there is a net flow from some users, to a given business eg starbucks, where the users just buy new BTC for USD and spend and dont earn BTC. Rebalancing would work because the exchange where they buy new BTC would be incentivised to pay starbucks (or whoever has excess coins on a channel) to send the coins back to the users topping up by paying them negative fees, because the fees to do that should be less than using on-chain transactions. > But I don't think it is a scaling solution for the types of payments the Bitcoin > network is handling today. Actually I think it may well be able to do that very well. We dont know for sure how it will work until we see the balance and effectiveness of the network algorithms against usage (eg simulating from Bitcoin's historic usage say), but there's good reason to see that BTC can recirculate and rebalance due to the reversible non-expiring channels and capitalisation requirements can be lower than simple expectation due higher velocity and redistribution of fees to anyone with excess liquidity and connectivity heading in the right direction. Adam ^ permalink raw reply [flat|nested] 43+ messages in thread
* Re: [bitcoin-dev] A Proposed Compromise to the Block Size Limit 2015-06-28 17:51 ` Adam Back @ 2015-06-28 18:58 ` Adam Back 2015-06-28 21:05 ` Gavin Andresen 2015-07-10 2:55 ` Tom Harding 0 siblings, 2 replies; 43+ messages in thread From: Adam Back @ 2015-06-28 18:58 UTC (permalink / raw) To: Adam Back; +Cc: bitcoin-dev This is probably going to sound impolite, but I think it's pertinent. Gavin, on dwelling on the the fact that you appear to not understand the basics of the lightning network, I am a little alarmed about this, given your recent proposals to unilaterally push the network into quite dangerous areas of game theory, to lobby companies etc. People are super polite and respectful around here, but this is not looking good, if you don't mind me saying so. You can't make balanced or informed trade-offs on block-size schedules stretching into the future, if you don't understand work that is underway, and has been for months. Lightning is a major candidate approach the rest of the technical community sees for Bitcoin to scale. Lightning allows Bitcoin to scale even without a block-size increase, and therefore considerably impacts any calculation of how much block-size is required. In this light you appear to have been attempting to push through a change without even understanding the alternatives or greater ecosystem. Adam On 28 June 2015 at 19:51, Adam Back <adam@cypherspace.org> wrote: > On Sun, Jun 28, 2015 at 1:12 PM, Mark Friedenbach <mark@friedenbach.org> wrote: >> But ultimately, lightning usefully solves a problem where participants have semi-long lived payment endpoints. > > Recipients do benefit from keeping connections to hubs because if a > hub goes away or a user abandons a hub that tends to generate new > on-chain traffic for balance reclaim, and new channel establishment, > as we understand the limits so far. > > On 28 June 2015 at 19:29, Gavin Andresen <gavinandresen@gmail.com> wrote: >> Very few of my own personal Bitcoin transactions fit that use-case. > > I believe Mark is talking about the one hop (direct) connections > benefits from being long-lived; the payment destination is not > restricted in the same way. It's more like having a static IP address > with your ISP, that doesnt stop you reaching anywhere on the internet. > > Say the Lightning Network has an average fan out of 10, now subject to > capital and rebalancing flows in the network you can pay anyone of a > billion people in 9 hops. Maybe the fanout is lumpy, with some bigger > hubs - that just serves to reduce the number of hops. Maybe there are > some capitalisation limits, that is dealt with by negative fees and > recirculation (more on that below) or failing that recapitalisation > on-chain. Some people assume that the hub will run out of > capitalisation on a given channel, however if people and hubs retain > redundant channels they can be paid to rebalance channels, and even > users can be paid by other users if there is a net flow from some > users, to a given business eg starbucks, where the users just buy new > BTC for USD and spend and dont earn BTC. Rebalancing would work > because the exchange where they buy new BTC would be incentivised to > pay starbucks (or whoever has excess coins on a channel) to send the > coins back to the users topping up by paying them negative fees, > because the fees to do that should be less than using on-chain > transactions. > >> But I don't think it is a scaling solution for the types of payments the Bitcoin >> network is handling today. > > Actually I think it may well be able to do that very well. We dont > know for sure how it will work until we see the balance and > effectiveness of the network algorithms against usage (eg simulating > from Bitcoin's historic usage say), but there's good reason to see > that BTC can recirculate and rebalance due to the reversible > non-expiring channels and capitalisation requirements can be lower > than simple expectation due higher velocity and redistribution of fees > to anyone with excess liquidity and connectivity heading in the right > direction. > > Adam ^ permalink raw reply [flat|nested] 43+ messages in thread
* Re: [bitcoin-dev] A Proposed Compromise to the Block Size Limit 2015-06-28 18:58 ` Adam Back @ 2015-06-28 21:05 ` Gavin Andresen 2015-06-28 21:23 ` Michael Naber 2015-06-28 22:07 ` Adam Back 2015-07-10 2:55 ` Tom Harding 1 sibling, 2 replies; 43+ messages in thread From: Gavin Andresen @ 2015-06-28 21:05 UTC (permalink / raw) To: Adam Back; +Cc: bitcoin-dev [-- Attachment #1: Type: text/plain, Size: 972 bytes --] On Sun, Jun 28, 2015 at 2:58 PM, Adam Back <adam@cypherspace.org> wrote: > This is probably going to sound impolite, but I think it's pertinent. > > Gavin, on dwelling on the the fact that you appear to not understand > the basics of the lightning network, I am a little alarmed about this If I don't see how switching from using the thousands of fully-validating bitcoin nodes with (tens? hundreds?) of Lightning Network hubs is better in terms of decentralization (or security, in terms of Sybil/DoS attacks), then I doubt other people do, either. You need to do a better job of explaining it. But even if you could convince me that it WAS better from a security/decentralization point of view: a) Lightning Network is nothing but a whitepaper right now. We are a long way from a practical implementation supported by even one wallet. b) The Lightning Network paper itself says bigger blocks will be needed even if (especially if!) Lightning is wildly successful. [-- Attachment #2: Type: text/html, Size: 1403 bytes --] ^ permalink raw reply [flat|nested] 43+ messages in thread
* Re: [bitcoin-dev] A Proposed Compromise to the Block Size Limit 2015-06-28 21:05 ` Gavin Andresen @ 2015-06-28 21:23 ` Michael Naber 2015-06-28 22:07 ` Adam Back 1 sibling, 0 replies; 43+ messages in thread From: Michael Naber @ 2015-06-28 21:23 UTC (permalink / raw) To: Gavin Andresen, Peter Todd, Adam Back; +Cc: bitcoin-dev [-- Attachment #1: Type: text/plain, Size: 3232 bytes --] Bitcoin Core exists to solve the global consensus problem. Global network consensus means that there is global network recognition that a particular transaction has occurred and is irreversible. Systems like hub-and-spoke, payment channels, Lightning, etc. are useful, but they are not solutions to the global consensus problem, because they do not meet this definition of global consensus. Let us focus our efforts on the goal of making Bitcoin Core the best solution to the global consensus problem. Let us address Peter Todd’s requirements to raise the block size limit to 8MB: 1) Run a successful test-net with 8MB blocks and show that the network works and small miners are not unduly disadvantaged 2) Address Peter Todd's concern: “without scarcity of blockchain space there is no reason to think that transaction fees won’t fall to the marginal cost of including a transaction, which doesn’t leave anything to pay for proof-of-work security” Regarding 1: This is not done yet, though it seems reasonable enough to do. Regarding 2: It is a fallacy to believe that artificially constraining capacity of Bitcoin Core below the limits of technology will lead to increased fees and therefore lead to sufficient security in the far-future. Constraining capacity below the limits of technology will ultimately only drive users seeking global consensus to solutions other than Bitcoin Core, perhaps through a fork. Demand for user access to high-capacity global consensus is real, and the technology exists to deliver it; if we don't meet that demand in Bitcoin Core, it's inevitably going to get met through some other product. Let's not let that happen. Let's keep Bitcoin Core the best solution to the global consensus problem. Thoughts? Is there anything else not mentioned above which anyone would like done in order to raise the block size to a static 8 MB? On Sun, Jun 28, 2015 at 5:05 PM, Gavin Andresen <gavinandresen@gmail.com> wrote: > On Sun, Jun 28, 2015 at 2:58 PM, Adam Back <adam@cypherspace.org> wrote: > >> This is probably going to sound impolite, but I think it's pertinent. >> >> Gavin, on dwelling on the the fact that you appear to not understand >> the basics of the lightning network, I am a little alarmed about this > > > If I don't see how switching from using the thousands of fully-validating > bitcoin nodes with (tens? hundreds?) of Lightning Network hubs is better in > terms of decentralization (or security, in terms of Sybil/DoS attacks), > then I doubt other people do, either. You need to do a better job of > explaining it. > > But even if you could convince me that it WAS better from a > security/decentralization point of view: > > a) Lightning Network is nothing but a whitepaper right now. We are a long > way from a practical implementation supported by even one wallet. > > b) The Lightning Network paper itself says bigger blocks will be needed > even if (especially if!) Lightning is wildly successful. > > > > _______________________________________________ > bitcoin-dev mailing list > bitcoin-dev@lists.linuxfoundation.org > https://lists.linuxfoundation.org/mailman/listinfo/bitcoin-dev > > [-- Attachment #2: Type: text/html, Size: 4260 bytes --] ^ permalink raw reply [flat|nested] 43+ messages in thread
* Re: [bitcoin-dev] A Proposed Compromise to the Block Size Limit 2015-06-28 21:05 ` Gavin Andresen 2015-06-28 21:23 ` Michael Naber @ 2015-06-28 22:07 ` Adam Back 2015-06-29 0:59 ` Eric Lombrozo ` (3 more replies) 1 sibling, 4 replies; 43+ messages in thread From: Adam Back @ 2015-06-28 22:07 UTC (permalink / raw) To: Gavin Andresen; +Cc: bitcoin-dev On 28 June 2015 at 23:05, Gavin Andresen <gavinandresen@gmail.com> wrote: > On Sun, Jun 28, 2015 at 2:58 PM, Adam Back <adam@cypherspace.org> wrote: >> >> This is probably going to sound impolite, but I think it's pertinent. >> >> Gavin, on dwelling on the the fact that you appear to not understand >> the basics of the lightning network, I am a little alarmed about this > > If I don't see how switching from using the thousands of fully-validating > bitcoin nodes with (tens? hundreds?) of Lightning Network hubs is better in > terms of decentralization (or security, in terms of Sybil/DoS attacks), Its a source routed network, not a broadcast network. Fees are charged on channels so DoS is just a way to pay people a multiple of bandwidth cost. in terms of trustlessness Andrew Lapp explained it pretty well: > I don't mind a set of central authorities being part of an option IF the central authority > doesn't need to be trusted. On the blockchain, the larger miner is, the more you have > to trust them to not collude with anyone to reverse your payments or destroy the trust > in the system in some attack. On the Lightning network, a large hub can't steal my > money. > > I think most people share the sentiment that trustlessness is what matters and > decentralization is just a synonym for trustlessness when talking about the blockchain > and mining, however decentralization isn't necessarily synonymous with trustlessness > nor is centralization synonymous with trust-requiring when you're talking about > something else. Gavin wrote: > then I doubt other people do, either. You need to do a better job of explaining it. I gave it a go a couple of posts up. I didnt realise people here proposing mega-blocks were not paying attention to the whole lightning concept and detail. People said lots of things about how it's better to work on lightning, to scale algorithmically, rather than increasing block-size to dangerously centralising proportions. Did you think we were Gish Galloping you? We were completely serious. The paper is on http://lightning.network though it is not so clearly explained there, however Joseph is working on improving the paper as I understand it. Rusty wrote a high-level blog explainer: http://rusty.ozlabs.org/?p=450 though I don't recall that he got into recirculation, negative fees etc. A good question for the lightning-dev mailing list maybe. http://lists.linuxfoundation.org/pipermail/lightning-dev/ There are a couple of recorded presentation videos / podcasts from Joseph Poon. sf bitcoin dev presentation: https://www.youtube.com/watch?v=2QH5EV_Io0E epicenter bitcoin: https://www.youtube.com/watch?v=fBS_ieDwQ9k There's a related paper from Christian Decker "Duplex Micropayment Channels" http://www.tik.ee.ethz.ch/file/716b955c130e6c703fac336ea17b1670/duplex-micropayment-channels.pdf > But even if you could convince me that it WAS better from a > security/decentralization point of view: We don't need to convince people, we just have to code it and demonstrate it, which people are working on. But Lightning does need a decentralised and secure Bitcoin network for anchor and reclaim transactions, so take it easy with the mega-blocks in the mean-time. > a) Lightning Network is nothing but a whitepaper right now. We are a long > way from a practical implementation supported by even one wallet. maybe you want to check in on https://github.com/ElementsProject/lightning and help code it. I expect we can get something running inside a year. Which kind of obviates the burning "need" for a schedule into the far future rising to 8GB with unrealistic bandwidth growth assumptions that will surely cause centralisation problems. For block-size I think it would be better to have a 2-4 year or one off size bump with policy limits and then re-evaluate after we've seen what lightning can do. I have been saying the same thing ad-nauseam for weeks. > b) The Lightning Network paper itself says bigger blocks will be needed even > if (especially if!) Lightning is wildly successful. Not nearly as big as if you tried to put the transactions it would enable on the chain, that's for sure! We dont know what that limit is but people have been imagining 1,000 or 10,000 transactions per anchor transaction. If micro-payments get popular many more. Basically users would park Bitcoins a on a hub channel instead of the blockchain. The channel can stay up indefinitely, and the user has assurances analogous to greenaddress time-lock mechanism Flexcap maybe a better solution because that allows bursting block-size when economically rational. Note that the time-locks with lightning are assumed to be relative CTLV eg using the mechanism as Mark Friedenbach described in a post here, and as implemented in the elements sidechain, so there is not a huge rush to reclaim funds. They can be spread out in time. If you want to scale Bitcoin - like really scale it - work on lightning. Lightning + a decentralised and secure Bitcoin, scales further and is more trustless than Bitcoin forced into centralisation via premature mega-blocks. To my mind a shorter, more conservative block-size increase to give a few years room is enough for now. We'll be in a better position to know what the right next step is after lightning is running. Something to mention is you can elide transactions before reclaiming. So long as the balancing transaction is correct, someone online can swap it for you with an equal balance one with less hops of intermediate payment flows. It's pretty interesting what you can do already. I'm fairly confident we're not finished algorithmically optimising it either. It's surprising how much new territory there is just sitting there unexplored. Adam ^ permalink raw reply [flat|nested] 43+ messages in thread
* Re: [bitcoin-dev] A Proposed Compromise to the Block Size Limit 2015-06-28 22:07 ` Adam Back @ 2015-06-29 0:59 ` Eric Lombrozo 2015-06-29 1:13 ` Eric Lombrozo ` (2 subsequent siblings) 3 siblings, 0 replies; 43+ messages in thread From: Eric Lombrozo @ 2015-06-29 0:59 UTC (permalink / raw) To: Adam Back; +Cc: bitcoin-dev [-- Attachment #1: Type: text/plain, Size: 6691 bytes --] There’s no question that a flooding mesh network requiring global consensus for every transactions is not the way. It’s also clear that a routable protocol capable of compensating hubs is basically the holy grail. So what’s there to discuss? - Eric > On Jun 28, 2015, at 3:07 PM, Adam Back <adam@cypherspace.org> wrote: > > On 28 June 2015 at 23:05, Gavin Andresen <gavinandresen@gmail.com> wrote: >> On Sun, Jun 28, 2015 at 2:58 PM, Adam Back <adam@cypherspace.org> wrote: >>> >>> This is probably going to sound impolite, but I think it's pertinent. >>> >>> Gavin, on dwelling on the the fact that you appear to not understand >>> the basics of the lightning network, I am a little alarmed about this >> >> If I don't see how switching from using the thousands of fully-validating >> bitcoin nodes with (tens? hundreds?) of Lightning Network hubs is better in >> terms of decentralization (or security, in terms of Sybil/DoS attacks), > > Its a source routed network, not a broadcast network. Fees are > charged on channels so > DoS is just a way to pay people a multiple of bandwidth cost. > > in terms of trustlessness Andrew Lapp explained it pretty well: >> I don't mind a set of central authorities being part of an option IF the central authority >> doesn't need to be trusted. On the blockchain, the larger miner is, the more you have >> to trust them to not collude with anyone to reverse your payments or destroy the trust >> in the system in some attack. On the Lightning network, a large hub can't steal my >> money. >> >> I think most people share the sentiment that trustlessness is what matters and >> decentralization is just a synonym for trustlessness when talking about the blockchain >> and mining, however decentralization isn't necessarily synonymous with trustlessness >> nor is centralization synonymous with trust-requiring when you're talking about >> something else. > > Gavin wrote: >> then I doubt other people do, either. You need to do a better job of explaining it. > > I gave it a go a couple of posts up. I didnt realise people here > proposing mega-blocks were not paying attention to the whole lightning > concept and detail. > > People said lots of things about how it's better to work on lightning, > to scale algorithmically, rather than increasing block-size to > dangerously centralising proportions. > Did you think we were Gish Galloping you? We were completely serious. > > The paper is on http://lightning.network > > though it is not so clearly explained there, however Joseph is working > on improving the paper as I understand it. > > Rusty wrote a high-level blog explainer: http://rusty.ozlabs.org/?p=450 > > though I don't recall that he got into recirculation, negative fees > etc. A good question > for the lightning-dev mailing list maybe. > > http://lists.linuxfoundation.org/pipermail/lightning-dev/ > > There are a couple of recorded presentation videos / podcasts from Joseph Poon. > > sf bitcoin dev presentation: > > https://www.youtube.com/watch?v=2QH5EV_Io0E > > epicenter bitcoin: > > https://www.youtube.com/watch?v=fBS_ieDwQ9k > > There's a related paper from Christian Decker "Duplex Micropayment Channels" > > http://www.tik.ee.ethz.ch/file/716b955c130e6c703fac336ea17b1670/duplex-micropayment-channels.pdf > >> But even if you could convince me that it WAS better from a >> security/decentralization point of view: > > We don't need to convince people, we just have to code it and > demonstrate it, which people are working on. > > But Lightning does need a decentralised and secure Bitcoin network for > anchor and reclaim transactions, so take it easy with the mega-blocks > in the mean-time. > >> a) Lightning Network is nothing but a whitepaper right now. We are a long >> way from a practical implementation supported by even one wallet. > > maybe you want to check in on > > https://github.com/ElementsProject/lightning > > and help code it. > > I expect we can get something running inside a year. Which kind of > obviates the burning "need" for a schedule into the far future rising > to 8GB with unrealistic bandwidth growth assumptions that will surely > cause centralisation problems. > > For block-size I think it would be better to have a 2-4 year or one > off size bump with policy limits and then re-evaluate after we've seen > what lightning can do. > > I have been saying the same thing ad-nauseam for weeks. > >> b) The Lightning Network paper itself says bigger blocks will be needed even >> if (especially if!) Lightning is wildly successful. > > Not nearly as big as if you tried to put the transactions it would > enable on the chain, that's for sure! We dont know what that limit is > but people have been imagining 1,000 or 10,000 transactions per anchor > transaction. If micro-payments get popular many more. > > Basically users would park Bitcoins a on a hub channel instead of the > blockchain. The channel can stay up indefinitely, and the user has > assurances analogous to greenaddress time-lock mechanism > > Flexcap maybe a better solution because that allows bursting > block-size when economically rational. > > Note that the time-locks with lightning are assumed to be relative > CTLV eg using the mechanism as Mark Friedenbach described in a post > here, and as implemented in the elements sidechain, so there is not a > huge rush to reclaim funds. They can be spread out in time. > > If you want to scale Bitcoin - like really scale it - work on > lightning. Lightning + a decentralised and secure Bitcoin, scales > further and is more trustless than Bitcoin forced into centralisation > via premature mega-blocks. > > To my mind a shorter, more conservative block-size increase to give a > few years room is enough for now. We'll be in a better position to > know what the right next step is after lightning is running. > > Something to mention is you can elide transactions before reclaiming. > So long as the balancing transaction is correct, someone online can > swap it for you with an equal balance one with less hops of > intermediate payment flows. > > > It's pretty interesting what you can do already. I'm fairly confident > we're not finished algorithmically optimising it either. It's > surprising how much new territory there is just sitting there > unexplored. > > Adam > _______________________________________________ > bitcoin-dev mailing list > bitcoin-dev@lists.linuxfoundation.org > https://lists.linuxfoundation.org/mailman/listinfo/bitcoin-dev [-- Attachment #2: Message signed with OpenPGP using GPGMail --] [-- Type: application/pgp-signature, Size: 842 bytes --] ^ permalink raw reply [flat|nested] 43+ messages in thread
* Re: [bitcoin-dev] A Proposed Compromise to the Block Size Limit 2015-06-28 22:07 ` Adam Back 2015-06-29 0:59 ` Eric Lombrozo @ 2015-06-29 1:13 ` Eric Lombrozo 2015-06-29 1:45 ` Andy Schroder 2015-06-30 0:42 ` Tom Harding 3 siblings, 0 replies; 43+ messages in thread From: Eric Lombrozo @ 2015-06-29 1:13 UTC (permalink / raw) To: Adam Back; +Cc: bitcoin-dev [-- Attachment #1: Type: text/plain, Size: 7228 bytes --] The Lightning network is essentially a contract negotiation scheme that rewards cooperation. Defection amounts to either broadcasting early or not responding to signature requests. If done right, either of these situations incurs a bigger cost to the uncooperative party than cooperation. This is why I say blockchains are like a fix to the prisoner’s dilemma. The blockchain becomes essentially a dispute resolution mechanism and a way to anchor stuff. There’s no use case covered by the current method of “flood the entire network and confirm on blockchain” that can’t be covered by a method of “participate in a contract which guarantees me payment on the blockchain if anyone is uncooperative but which rarely requires touching the blockchain” methinks. - Eric Lombrozo > On Jun 28, 2015, at 3:07 PM, Adam Back <adam@cypherspace.org> wrote: > > On 28 June 2015 at 23:05, Gavin Andresen <gavinandresen@gmail.com> wrote: >> On Sun, Jun 28, 2015 at 2:58 PM, Adam Back <adam@cypherspace.org> wrote: >>> >>> This is probably going to sound impolite, but I think it's pertinent. >>> >>> Gavin, on dwelling on the the fact that you appear to not understand >>> the basics of the lightning network, I am a little alarmed about this >> >> If I don't see how switching from using the thousands of fully-validating >> bitcoin nodes with (tens? hundreds?) of Lightning Network hubs is better in >> terms of decentralization (or security, in terms of Sybil/DoS attacks), > > Its a source routed network, not a broadcast network. Fees are > charged on channels so > DoS is just a way to pay people a multiple of bandwidth cost. > > in terms of trustlessness Andrew Lapp explained it pretty well: >> I don't mind a set of central authorities being part of an option IF the central authority >> doesn't need to be trusted. On the blockchain, the larger miner is, the more you have >> to trust them to not collude with anyone to reverse your payments or destroy the trust >> in the system in some attack. On the Lightning network, a large hub can't steal my >> money. >> >> I think most people share the sentiment that trustlessness is what matters and >> decentralization is just a synonym for trustlessness when talking about the blockchain >> and mining, however decentralization isn't necessarily synonymous with trustlessness >> nor is centralization synonymous with trust-requiring when you're talking about >> something else. > > Gavin wrote: >> then I doubt other people do, either. You need to do a better job of explaining it. > > I gave it a go a couple of posts up. I didnt realise people here > proposing mega-blocks were not paying attention to the whole lightning > concept and detail. > > People said lots of things about how it's better to work on lightning, > to scale algorithmically, rather than increasing block-size to > dangerously centralising proportions. > Did you think we were Gish Galloping you? We were completely serious. > > The paper is on http://lightning.network > > though it is not so clearly explained there, however Joseph is working > on improving the paper as I understand it. > > Rusty wrote a high-level blog explainer: http://rusty.ozlabs.org/?p=450 > > though I don't recall that he got into recirculation, negative fees > etc. A good question > for the lightning-dev mailing list maybe. > > http://lists.linuxfoundation.org/pipermail/lightning-dev/ > > There are a couple of recorded presentation videos / podcasts from Joseph Poon. > > sf bitcoin dev presentation: > > https://www.youtube.com/watch?v=2QH5EV_Io0E > > epicenter bitcoin: > > https://www.youtube.com/watch?v=fBS_ieDwQ9k > > There's a related paper from Christian Decker "Duplex Micropayment Channels" > > http://www.tik.ee.ethz.ch/file/716b955c130e6c703fac336ea17b1670/duplex-micropayment-channels.pdf > >> But even if you could convince me that it WAS better from a >> security/decentralization point of view: > > We don't need to convince people, we just have to code it and > demonstrate it, which people are working on. > > But Lightning does need a decentralised and secure Bitcoin network for > anchor and reclaim transactions, so take it easy with the mega-blocks > in the mean-time. > >> a) Lightning Network is nothing but a whitepaper right now. We are a long >> way from a practical implementation supported by even one wallet. > > maybe you want to check in on > > https://github.com/ElementsProject/lightning > > and help code it. > > I expect we can get something running inside a year. Which kind of > obviates the burning "need" for a schedule into the far future rising > to 8GB with unrealistic bandwidth growth assumptions that will surely > cause centralisation problems. > > For block-size I think it would be better to have a 2-4 year or one > off size bump with policy limits and then re-evaluate after we've seen > what lightning can do. > > I have been saying the same thing ad-nauseam for weeks. > >> b) The Lightning Network paper itself says bigger blocks will be needed even >> if (especially if!) Lightning is wildly successful. > > Not nearly as big as if you tried to put the transactions it would > enable on the chain, that's for sure! We dont know what that limit is > but people have been imagining 1,000 or 10,000 transactions per anchor > transaction. If micro-payments get popular many more. > > Basically users would park Bitcoins a on a hub channel instead of the > blockchain. The channel can stay up indefinitely, and the user has > assurances analogous to greenaddress time-lock mechanism > > Flexcap maybe a better solution because that allows bursting > block-size when economically rational. > > Note that the time-locks with lightning are assumed to be relative > CTLV eg using the mechanism as Mark Friedenbach described in a post > here, and as implemented in the elements sidechain, so there is not a > huge rush to reclaim funds. They can be spread out in time. > > If you want to scale Bitcoin - like really scale it - work on > lightning. Lightning + a decentralised and secure Bitcoin, scales > further and is more trustless than Bitcoin forced into centralisation > via premature mega-blocks. > > To my mind a shorter, more conservative block-size increase to give a > few years room is enough for now. We'll be in a better position to > know what the right next step is after lightning is running. > > Something to mention is you can elide transactions before reclaiming. > So long as the balancing transaction is correct, someone online can > swap it for you with an equal balance one with less hops of > intermediate payment flows. > > > It's pretty interesting what you can do already. I'm fairly confident > we're not finished algorithmically optimising it either. It's > surprising how much new territory there is just sitting there > unexplored. > > Adam > _______________________________________________ > bitcoin-dev mailing list > bitcoin-dev@lists.linuxfoundation.org > https://lists.linuxfoundation.org/mailman/listinfo/bitcoin-dev [-- Attachment #2: Message signed with OpenPGP using GPGMail --] [-- Type: application/pgp-signature, Size: 842 bytes --] ^ permalink raw reply [flat|nested] 43+ messages in thread
* Re: [bitcoin-dev] A Proposed Compromise to the Block Size Limit 2015-06-28 22:07 ` Adam Back 2015-06-29 0:59 ` Eric Lombrozo 2015-06-29 1:13 ` Eric Lombrozo @ 2015-06-29 1:45 ` Andy Schroder 2015-06-30 0:42 ` Tom Harding 3 siblings, 0 replies; 43+ messages in thread From: Andy Schroder @ 2015-06-29 1:45 UTC (permalink / raw) To: Adam Back; +Cc: bitcoin-dev [-- Attachment #1: Type: text/plain, Size: 6690 bytes --] Regarding privacy and the lightening network. Has this been well addressed? I haven't seen much that leads me to believe there is. Only options I see are to have many open payment channels, but that is still limiting and inefficient, or require an extensive number of hops in your payment route, but this is also limiting. Andy Schroder On 06/28/2015 06:07 PM, Adam Back wrote: > On 28 June 2015 at 23:05, Gavin Andresen <gavinandresen@gmail.com> wrote: >> On Sun, Jun 28, 2015 at 2:58 PM, Adam Back <adam@cypherspace.org> wrote: >>> This is probably going to sound impolite, but I think it's pertinent. >>> >>> Gavin, on dwelling on the the fact that you appear to not understand >>> the basics of the lightning network, I am a little alarmed about this >> If I don't see how switching from using the thousands of fully-validating >> bitcoin nodes with (tens? hundreds?) of Lightning Network hubs is better in >> terms of decentralization (or security, in terms of Sybil/DoS attacks), > Its a source routed network, not a broadcast network. Fees are > charged on channels so > DoS is just a way to pay people a multiple of bandwidth cost. > > in terms of trustlessness Andrew Lapp explained it pretty well: >> I don't mind a set of central authorities being part of an option IF the central authority >> doesn't need to be trusted. On the blockchain, the larger miner is, the more you have >> to trust them to not collude with anyone to reverse your payments or destroy the trust >> in the system in some attack. On the Lightning network, a large hub can't steal my >> money. >> >> I think most people share the sentiment that trustlessness is what matters and >> decentralization is just a synonym for trustlessness when talking about the blockchain >> and mining, however decentralization isn't necessarily synonymous with trustlessness >> nor is centralization synonymous with trust-requiring when you're talking about >> something else. > Gavin wrote: >> then I doubt other people do, either. You need to do a better job of explaining it. > I gave it a go a couple of posts up. I didnt realise people here > proposing mega-blocks were not paying attention to the whole lightning > concept and detail. > > People said lots of things about how it's better to work on lightning, > to scale algorithmically, rather than increasing block-size to > dangerously centralising proportions. > Did you think we were Gish Galloping you? We were completely serious. > > The paper is on http://lightning.network > > though it is not so clearly explained there, however Joseph is working > on improving the paper as I understand it. > > Rusty wrote a high-level blog explainer: http://rusty.ozlabs.org/?p=450 > > though I don't recall that he got into recirculation, negative fees > etc. A good question > for the lightning-dev mailing list maybe. > > http://lists.linuxfoundation.org/pipermail/lightning-dev/ > > There are a couple of recorded presentation videos / podcasts from Joseph Poon. > > sf bitcoin dev presentation: > > https://www.youtube.com/watch?v=2QH5EV_Io0E > > epicenter bitcoin: > > https://www.youtube.com/watch?v=fBS_ieDwQ9k > > There's a related paper from Christian Decker "Duplex Micropayment Channels" > > http://www.tik.ee.ethz.ch/file/716b955c130e6c703fac336ea17b1670/duplex-micropayment-channels.pdf > >> But even if you could convince me that it WAS better from a >> security/decentralization point of view: > We don't need to convince people, we just have to code it and > demonstrate it, which people are working on. > > But Lightning does need a decentralised and secure Bitcoin network for > anchor and reclaim transactions, so take it easy with the mega-blocks > in the mean-time. > >> a) Lightning Network is nothing but a whitepaper right now. We are a long >> way from a practical implementation supported by even one wallet. > maybe you want to check in on > > https://github.com/ElementsProject/lightning > > and help code it. > > I expect we can get something running inside a year. Which kind of > obviates the burning "need" for a schedule into the far future rising > to 8GB with unrealistic bandwidth growth assumptions that will surely > cause centralisation problems. > > For block-size I think it would be better to have a 2-4 year or one > off size bump with policy limits and then re-evaluate after we've seen > what lightning can do. > > I have been saying the same thing ad-nauseam for weeks. > >> b) The Lightning Network paper itself says bigger blocks will be needed even >> if (especially if!) Lightning is wildly successful. > Not nearly as big as if you tried to put the transactions it would > enable on the chain, that's for sure! We dont know what that limit is > but people have been imagining 1,000 or 10,000 transactions per anchor > transaction. If micro-payments get popular many more. > > Basically users would park Bitcoins a on a hub channel instead of the > blockchain. The channel can stay up indefinitely, and the user has > assurances analogous to greenaddress time-lock mechanism > > Flexcap maybe a better solution because that allows bursting > block-size when economically rational. > > Note that the time-locks with lightning are assumed to be relative > CTLV eg using the mechanism as Mark Friedenbach described in a post > here, and as implemented in the elements sidechain, so there is not a > huge rush to reclaim funds. They can be spread out in time. > > If you want to scale Bitcoin - like really scale it - work on > lightning. Lightning + a decentralised and secure Bitcoin, scales > further and is more trustless than Bitcoin forced into centralisation > via premature mega-blocks. > > To my mind a shorter, more conservative block-size increase to give a > few years room is enough for now. We'll be in a better position to > know what the right next step is after lightning is running. > > Something to mention is you can elide transactions before reclaiming. > So long as the balancing transaction is correct, someone online can > swap it for you with an equal balance one with less hops of > intermediate payment flows. > > > It's pretty interesting what you can do already. I'm fairly confident > we're not finished algorithmically optimising it either. It's > surprising how much new territory there is just sitting there > unexplored. > > Adam > _______________________________________________ > bitcoin-dev mailing list > bitcoin-dev@lists.linuxfoundation.org > https://lists.linuxfoundation.org/mailman/listinfo/bitcoin-dev > > > [-- Attachment #2: OpenPGP digital signature --] [-- Type: application/pgp-signature, Size: 555 bytes --] ^ permalink raw reply [flat|nested] 43+ messages in thread
* Re: [bitcoin-dev] A Proposed Compromise to the Block Size Limit 2015-06-28 22:07 ` Adam Back ` (2 preceding siblings ...) 2015-06-29 1:45 ` Andy Schroder @ 2015-06-30 0:42 ` Tom Harding 3 siblings, 0 replies; 43+ messages in thread From: Tom Harding @ 2015-06-30 0:42 UTC (permalink / raw) To: Adam Back; +Cc: bitcoin-dev On 6/28/2015 3:07 PM, Adam Back wrote: > We dont know what that limit is but people have been imagining 1,000 > or 10,000 transactions per anchor transaction. Basically users would > park Bitcoins a on a hub channel instead of the blockchain. This re-introduces a solved problem (solved by bitcoin better than anything else) - worrying whether your "payment hub" actually connects to whom you wish to pay. There will be enormous network effects and centralization pressure in the payment-hub space. A few entities, maybe single entity, should be expected to quickly corner the market and own the whole thing. This concept is far too untested to justify amateur economic meddling in the bitcoin fee market by setting a restrictive hard cap below technical feasibility. I can guess exactly who would want to keep bitcoin from improving: *those who hope to be the future payment hub oligarchs*. ^ permalink raw reply [flat|nested] 43+ messages in thread
* Re: [bitcoin-dev] A Proposed Compromise to the Block Size Limit 2015-06-28 18:58 ` Adam Back 2015-06-28 21:05 ` Gavin Andresen @ 2015-07-10 2:55 ` Tom Harding 1 sibling, 0 replies; 43+ messages in thread From: Tom Harding @ 2015-07-10 2:55 UTC (permalink / raw) To: Adam Back; +Cc: bitcoin-dev >> On 6/28/2015 9:32 AM, Raystonn . wrote: >>> Write coalescing works fine when you have multiple writes headed to >>> the same (contiguous) location. Will lightning be useful when we >>> have more unique transactions being sent to different addresses, and >>> not just multiple transactions between the same sender and address? >>> I have doubts. > On 6/28/2015 10:29 AM, Gavin Andresen wrote: >> Don't get me wrong, I think the Lightning Network is a fantastic idea >> and a great experiment and will likely be used for all sorts of great >> payment innovations (micropayments for bandwidth maybe, or maybe >> paying workers by the hour instead of at the end of the month). But I >> don't think it is a scaling solution for the types of payments the >> Bitcoin network is handling today. On 6/28/2015 11:58 AM, Adam Back wrote: > Lightning allows Bitcoin to scale even without a block-size increase, > and therefore considerably impacts any calculation of how much > block-size is required. In this light you appear to have been > attempting to push through a change without even understanding the > alternatives or greater ecosystem. Lightning Network (LN) does not "allow Bitcoin to scale". LN is a bitcoin application. The properties of LN are dependent on bitcoin, but they are distinct from bitcoin. In particular, an under-appreciated aspect of LN is that in order for your interactions to be consolidated and consume less blockchain space, you must give up significant control of the money you send AND the money you receive. If either sender or receiver wants to record a transaction in the blockchain immediately, there is no space savings versus bitcoin. More blockchain space is actually, used, due to LN overhead. If both sender and receiver are willing to delay recording in the blockchain, then the situation is analogous to using banks. Sender's hub pays from sender channel, to receiver channel at receiver's hub. Neither side fully relinquishes custody of the money in their multisig payment hub channels -- this is an improvement on traditional bank accounts -- BUT... - Sender is required to lock funds under his hub's signature - this is well discussed - Less well discussed: *to achieve any consolidation at all, receiver must ALSO be willing to lock received funds under his hub's signature* I'll put it another way. LN only "solves" the scaling problem if receiver's hub has pre-commited sufficient funds to cover the receipts, AND if receiver endures for a period of time -- directly related to the scaling factor -- being unable to spend money received UNLESS his payment hub signs off on his spend instructions. ^ permalink raw reply [flat|nested] 43+ messages in thread
* Re: [bitcoin-dev] A Proposed Compromise to the Block Size Limit 2015-06-28 17:29 ` Gavin Andresen 2015-06-28 17:45 ` Mark Friedenbach 2015-06-28 17:51 ` Adam Back @ 2015-06-28 17:53 ` Jorge Timón 2015-06-28 19:22 ` Andrew Lapp 3 siblings, 0 replies; 43+ messages in thread From: Jorge Timón @ 2015-06-28 17:53 UTC (permalink / raw) To: Gavin Andresen; +Cc: bitcoin-dev On Sun, Jun 28, 2015 at 7:29 PM, Gavin Andresen <gavinandresen@gmail.com> wrote: > On Sun, Jun 28, 2015 at 1:12 PM, Mark Friedenbach <mark@friedenbach.org> > wrote: >> >> But ultimately, lightning usefully solves a problem where participants >> have semi-long lived payment endpoints. > > > Very few of my own personal Bitcoin transactions fit that use-case. > > In fact, very few of my own personal dollar transactions fit that use-case > (I suppose if I was addicted to Starbucks I'd have one of their payment > cards that I topped up every once in a while, which would map nicely onto a > payment channel). I suppose I could setup a payment channel with the grocery > store I shop at once a week, but that would be inconvenient (I'd have to > pre-fund it) and bad for my privacy. Unlike other payment channels designs, the lightning payment channel network allows you to pay to people that you haven't sent a pre-fund to. There's must be a path in the network from you to the payee. That's simpler with only a few hubs although too few hubs is bad for privacy. > I can see how payment channels would work between big financial institutions > as a settlement layer, but isn't that exactly the centralization concern > that is making a lot of people worried about increasing the max block size? Worried about financial institutions using Bitcoin? No. Who said that? > And if there are only a dozen or two popular hubs, that's much worse > centralization-wise compared to a few thousand fully-validating Bitcoin > nodes. Remember the hubs cannot steal any coins. > Don't get me wrong, I think the Lightning Network is a fantastic idea and a > great experiment and will likely be used for all sorts of great payment > innovations (micropayments for bandwidth maybe, or maybe paying workers by > the hour instead of at the end of the month). But I don't think it is a > scaling solution for the types of payments the Bitcoin network is handling > today. I don't see how people could pay coffees with bitcoin in the long term otherwise. Bitcoin IOUs from a third party (or federation) maybe, but not with real p2p btc. ^ permalink raw reply [flat|nested] 43+ messages in thread
* Re: [bitcoin-dev] A Proposed Compromise to the Block Size Limit 2015-06-28 17:29 ` Gavin Andresen ` (2 preceding siblings ...) 2015-06-28 17:53 ` Jorge Timón @ 2015-06-28 19:22 ` Andrew Lapp 2015-06-28 19:40 ` Benjamin 3 siblings, 1 reply; 43+ messages in thread From: Andrew Lapp @ 2015-06-28 19:22 UTC (permalink / raw) To: bitcoin-dev I don't mind a set of central authorities being part of an option IF the central authority doesn't need to be trusted. On the blockchain, the larger miner is, the more you have to trust them to not collude with anyone to reverse your payments or destroy the trust in the system in some attack. On the Lightning network, a large hub can't steal my money. I think most people share the sentiment that trustlessness is what matters and decentralization is just a synonym for trustlessness when talking about the blockchain and mining, however decentralization isn't necessarily synonymous with trustlessness nor is centralization synonymous with trust-requiring when you're talking about something else. -Andrew Lapp On 06/28/2015 01:29 PM, Gavin Andresen wrote: > I can see how payment channels would work between big financial > institutions as a settlement layer, but isn't that exactly the > centralization concern that is making a lot of people worried about > increasing the max block size? ^ permalink raw reply [flat|nested] 43+ messages in thread
* Re: [bitcoin-dev] A Proposed Compromise to the Block Size Limit 2015-06-28 19:22 ` Andrew Lapp @ 2015-06-28 19:40 ` Benjamin 0 siblings, 0 replies; 43+ messages in thread From: Benjamin @ 2015-06-28 19:40 UTC (permalink / raw) To: Andrew Lapp; +Cc: bitcoin-dev [-- Attachment #1: Type: text/plain, Size: 1690 bytes --] "On the Lightning network, a large hub can't steal my money." Malicious hubs could flood the network. The way it is discussed now it's not resistant to Sybil attack either. It's an interesting idea in a very early stage. Not at all a drop-in replacement for Bitcoin anytime soon, as some imply. Blockstream shouldn't make these issues into pitches of their own tech of their for-profit enterprise. On Sun, Jun 28, 2015 at 9:22 PM, Andrew Lapp <lapp0@purdue.edu> wrote: > I don't mind a set of central authorities being part of an option IF the > central authority doesn't need to be trusted. On the blockchain, the larger > miner is, the more you have to trust them to not collude with anyone to > reverse your payments or destroy the trust in the system in some attack. On > the Lightning network, a large hub can't steal my money. > > I think most people share the sentiment that trustlessness is what matters > and decentralization is just a synonym for trustlessness when talking about > the blockchain and mining, however decentralization isn't necessarily > synonymous with trustlessness nor is centralization synonymous with > trust-requiring when you're talking about something else. > > -Andrew Lapp > > On 06/28/2015 01:29 PM, Gavin Andresen wrote: > >> I can see how payment channels would work between big financial >> institutions as a settlement layer, but isn't that exactly the >> centralization concern that is making a lot of people worried about >> increasing the max block size? >> > > _______________________________________________ > bitcoin-dev mailing list > bitcoin-dev@lists.linuxfoundation.org > https://lists.linuxfoundation.org/mailman/listinfo/bitcoin-dev > [-- Attachment #2: Type: text/html, Size: 2535 bytes --] ^ permalink raw reply [flat|nested] 43+ messages in thread
* Re: [bitcoin-dev] A Proposed Compromise to the Block Size Limit 2015-06-28 10:07 ` Adam Back 2015-06-28 10:29 ` Benjamin @ 2015-06-28 12:32 ` Milly Bitcoin 1 sibling, 0 replies; 43+ messages in thread From: Milly Bitcoin @ 2015-06-28 12:32 UTC (permalink / raw) To: bitcoin-dev >Also decentralisation is key, and that is something we can improve with pooling protocols to phase out the artificial centralisation. So how is the level of decentralization measured? I see many claims on this list that such-and-such action will increase or decrease centralization and sometimes people talk in absolutes such as something being decentralized or centralized. Some of the arguments seem to make claims without providing any kind of analysis or explanation. Nothing is truly decentralized and decentralization is just an approximation of having a collection of centralized systems interact in some way. I would suggest coming up with some sort of metric so these discussions can start from a baseline when discussing changes. Russ ^ permalink raw reply [flat|nested] 43+ messages in thread
* [bitcoin-dev] A Proposed Compromise to the Block Size Limit @ 2015-06-27 14:39 Michael Naber 2015-06-27 15:21 ` Peter Todd 2015-06-27 15:33 ` Adam Back 0 siblings, 2 replies; 43+ messages in thread From: Michael Naber @ 2015-06-27 14:39 UTC (permalink / raw) To: bitcoin-dev [-- Attachment #1: Type: text/plain, Size: 1509 bytes --] Demand to participate in a low-fee global consensus network will likely continue to rise. Technology already exists to meet that rising demand using a blockchain with sufficient block size. Whether that blockchain is Bitcoin Core with an increased block size, or whether it is a fork, market forces make it almost certain that demand will be met by a blockchain with adequate capacity. These forces ensure that not only today’s block size will be increased, but also that future increases will occur should the demand arise. In order to survive, Bitcoin Core must remain the lowest-fee, highest-capacity, most secure, distributed, fastest, overall best solution possible to the global consensus problem. Attempting to artificially constrain the block size below the limits of technology for any reason is a conflict with this objective and a threat to the survival of Bitcoin Core. At the same time, scheduling large future increases or permitting unlimited dynamic scaling of the block size limit raises concerns over availability of future computing resources. Instead, we should manually increase the block size limit as demand occurs, except in the special case that increasing the limit would cause an undue burden upon users wishing to validate the integrity of the blockchain. Compromise: Can we agree that raising the block size to a static 8MB now with a plan to increase it further should demand necessitate except in the special case above is a reasonable path forward? [-- Attachment #2: Type: text/html, Size: 1570 bytes --] ^ permalink raw reply [flat|nested] 43+ messages in thread
* Re: [bitcoin-dev] A Proposed Compromise to the Block Size Limit 2015-06-27 14:39 Michael Naber @ 2015-06-27 15:21 ` Peter Todd 2015-06-27 15:29 ` Randi Joseph 2015-06-27 16:19 ` Michael Naber 2015-06-27 15:33 ` Adam Back 1 sibling, 2 replies; 43+ messages in thread From: Peter Todd @ 2015-06-27 15:21 UTC (permalink / raw) To: Michael Naber, bitcoin-dev -----BEGIN PGP SIGNED MESSAGE----- Hash: SHA256 On 27 June 2015 10:39:51 GMT-04:00, Michael Naber <mickeybob@gmail.com> wrote: >Compromise: Can we agree that raising the block size to a static 8MB >now >with a plan to increase it further should demand necessitate except in >the >special case above is a reasonable path forward? It's not a reasonable path forward right now given the lack of testing done with 8MB+ blocks, among many other problems. A way to help make that appear more reasonable would be to setup a 8MB testnet as I suggested, with two years or so of 8MB blocks in history as well as a large UTXO set to test performance characteristics. Of course, that'll be a 840GB download - if that's unreasonable you might want to ask why 8MB blocks are reasonable... -----BEGIN PGP SIGNATURE----- iQE9BAEBCAAnIBxQZXRlciBUb2RkIDxwZXRlQHBldGVydG9kZC5vcmc+BQJVjr9n AAoJEMCF8hzn9Lnc47AIAIIwu4maaJs4pAKpK00jQnhPNIQ8LPvijD/8vvyugA1z OLxlRrn8zs7JPFbxWOAzK2qzT1RksSd0gbXqWm/Saqk9CAG5LBp7Oq0HAVE23XYt 6BvyhjyhYaZjDrv+SZvlSjdl5xfpDNPMIXMi7XblKD9hm1GIUSVIYAOinOSVIy0B HlKyn/xc4MaO8DuzQcs0vsNMudVQFLMOLjMWz/7iv41NnB/Ujjzv/6845Z1g7Opf d5AfxhPHZixshqav/lF7ly7xQwSZZpoJCyFdtzCNG47EQmFYY9e22uy1KVzS7Zeo qYPi3KRx5+vFtHHJMDYG5EIMTwI4l/4+lY/Sd0CFWss= =0IOS -----END PGP SIGNATURE----- ^ permalink raw reply [flat|nested] 43+ messages in thread
* Re: [bitcoin-dev] A Proposed Compromise to the Block Size Limit 2015-06-27 15:21 ` Peter Todd @ 2015-06-27 15:29 ` Randi Joseph 2015-06-27 15:32 ` Peter Todd 2015-06-27 16:19 ` Michael Naber 1 sibling, 1 reply; 43+ messages in thread From: Randi Joseph @ 2015-06-27 15:29 UTC (permalink / raw) To: Peter Todd, Michael Naber, bitcoin-dev [-- Attachment #1: Type: text/plain, Size: 474 bytes --] I wish you were just as prudent when you were recommending full RBF to mining pools. On 6/27/15 11:21 AM, Peter Todd wrote: > It's not a reasonable path forward right now given the lack of testing done with 8MB+ blocks, among many other problems. A way to help make that appear more reasonable would be to setup a 8MB testnet as I suggested, with two years or so of 8MB blocks in history as well as a large UTXO set to test performance characteristics. -- Randi Joseph [-- Attachment #2: Type: text/html, Size: 1049 bytes --] ^ permalink raw reply [flat|nested] 43+ messages in thread
* Re: [bitcoin-dev] A Proposed Compromise to the Block Size Limit 2015-06-27 15:29 ` Randi Joseph @ 2015-06-27 15:32 ` Peter Todd 0 siblings, 0 replies; 43+ messages in thread From: Peter Todd @ 2015-06-27 15:32 UTC (permalink / raw) To: Randi Joseph, Michael Naber, bitcoin-dev -----BEGIN PGP SIGNED MESSAGE----- Hash: SHA256 On 27 June 2015 11:29:07 GMT-04:00, Randi Joseph <randi@codehalo.com> wrote: >I wish you were just as prudent when you were recommending full RBF to >mining pools. You know, if doing that is imprudent, then people are using Bitcoin in a recklessly dangerous way. -----BEGIN PGP SIGNATURE----- iQE9BAEBCAAnIBxQZXRlciBUb2RkIDxwZXRlQHBldGVydG9kZC5vcmc+BQJVjsHq AAoJEMCF8hzn9Lnc47AH/1Yzl2xJhikeRG7qUmfwIkeuoXWRo9+T30Qj59ii49WU Nsnpuo6X98p0qz1j8fUKOiY4PQZ6wZYbBg8mTB/EGM8O99Zr8JCPJW0f8l07aXfk J4NGcgJGzn0CI/E11e4IJICqiLmZgfDa9I1+dNPskQlMu1QsCtju7GQboMpsMv/x q+Z0dFh9KJnESn8G7ULcrA9ERqu9bGPWLWYOFPcQW0GZQxTLF19Rv0j4njkWbKu6 h2I2LQJcI2uEINRhP6FWFMqCdnaHcox1vtkpeUdVUT3IrjNqhFsXt+M43yUOZ4LU UsKEj04dfPTjfGpmz/DwTp694VxWCKFGfS4mxGDaxO0= =DFeN -----END PGP SIGNATURE----- ^ permalink raw reply [flat|nested] 43+ messages in thread
* Re: [bitcoin-dev] A Proposed Compromise to the Block Size Limit 2015-06-27 15:21 ` Peter Todd 2015-06-27 15:29 ` Randi Joseph @ 2015-06-27 16:19 ` Michael Naber 2015-06-27 17:20 ` Peter Todd 1 sibling, 1 reply; 43+ messages in thread From: Michael Naber @ 2015-06-27 16:19 UTC (permalink / raw) To: Peter Todd; +Cc: bitcoin-dev [-- Attachment #1: Type: text/plain, Size: 1644 bytes --] That test seems like a reasonable suggestion; 840GB is not prohibitive given today's computing costs. What other than the successful result of that test would you want to see before agreeing to increase the block size to 8MB? On Sat, Jun 27, 2015 at 11:21 AM, Peter Todd <pete@petertodd.org> wrote: > -----BEGIN PGP SIGNED MESSAGE----- > Hash: SHA256 > > > > On 27 June 2015 10:39:51 GMT-04:00, Michael Naber <mickeybob@gmail.com> > wrote: > >Compromise: Can we agree that raising the block size to a static 8MB > >now > >with a plan to increase it further should demand necessitate except in > >the > >special case above is a reasonable path forward? > > It's not a reasonable path forward right now given the lack of testing > done with 8MB+ blocks, among many other problems. A way to help make that > appear more reasonable would be to setup a 8MB testnet as I suggested, with > two years or so of 8MB blocks in history as well as a large UTXO set to > test performance characteristics. > > Of course, that'll be a 840GB download - if that's unreasonable you might > want to ask why 8MB blocks are reasonable... > -----BEGIN PGP SIGNATURE----- > > iQE9BAEBCAAnIBxQZXRlciBUb2RkIDxwZXRlQHBldGVydG9kZC5vcmc+BQJVjr9n > AAoJEMCF8hzn9Lnc47AIAIIwu4maaJs4pAKpK00jQnhPNIQ8LPvijD/8vvyugA1z > OLxlRrn8zs7JPFbxWOAzK2qzT1RksSd0gbXqWm/Saqk9CAG5LBp7Oq0HAVE23XYt > 6BvyhjyhYaZjDrv+SZvlSjdl5xfpDNPMIXMi7XblKD9hm1GIUSVIYAOinOSVIy0B > HlKyn/xc4MaO8DuzQcs0vsNMudVQFLMOLjMWz/7iv41NnB/Ujjzv/6845Z1g7Opf > d5AfxhPHZixshqav/lF7ly7xQwSZZpoJCyFdtzCNG47EQmFYY9e22uy1KVzS7Zeo > qYPi3KRx5+vFtHHJMDYG5EIMTwI4l/4+lY/Sd0CFWss= > =0IOS > -----END PGP SIGNATURE----- > > [-- Attachment #2: Type: text/html, Size: 2186 bytes --] ^ permalink raw reply [flat|nested] 43+ messages in thread
* Re: [bitcoin-dev] A Proposed Compromise to the Block Size Limit 2015-06-27 16:19 ` Michael Naber @ 2015-06-27 17:20 ` Peter Todd 2015-06-27 17:26 ` Benjamin 0 siblings, 1 reply; 43+ messages in thread From: Peter Todd @ 2015-06-27 17:20 UTC (permalink / raw) To: Michael Naber; +Cc: bitcoin-dev [-- Attachment #1: Type: text/plain, Size: 2224 bytes --] On Sat, Jun 27, 2015 at 12:19:04PM -0400, Michael Naber wrote: > That test seems like a reasonable suggestion; 840GB is not prohibitive > given today's computing costs. What other than the successful result of > that test would you want to see before agreeing to increase the block size > to 8MB? The two main things you need to show is: 1) Small, anonymous, miners remain approximately as profitable as large miners, regardless of whether they are in the world, and even when miners are under attack. Remember I'm talking about mining here, not just hashing - the process of selling your hashpower to someone else who is actually doing the mining. As for "approximately as profitable", based on a 10% profit margin, a 5% profitability difference between a negligable ~0% hashing power miner and a 50% hashing power miner is a good standard here. The hard part here is basically keeping orphan rates low, as the %5 profitability different on %10 profit margin implies an orphan rate of about 0.5% - roughly what we have right now if not actually a bit lower. That also implies blocks propagate across the network in just a few seconds in the worst case, where blocks are being generated with transactions in them that are not already in mempools - circumventing propagation optimization techniques. As we're talking about small miners, we can't assume the miners are directly conneted to each other. (which itself is dangerous from an attack point of view - if they're directly connected they can be DoS attacked) 2) Medium to long term plan to pay for hashing power. Without scarcity of blockchain space there is no reason to think that transaction fees won't fall to the marginal cost of including a transaction, which doesn't leave anything to pay for proof-of-work security. A proposal meeting this criteria will have to be clever if you don't keep the blocksize sufficiently limited that transaction fees are non-negligable. One possible approach - if probably politically non-viable - would be to change the inflation schedule so that the currency is inflated indefinitely. -- 'peter'[:-1]@petertodd.org 0000000000000000007fc13ce02072d9cb2a6d51fae41fefcde7b3b283803d24 [-- Attachment #2: Digital signature --] [-- Type: application/pgp-signature, Size: 650 bytes --] ^ permalink raw reply [flat|nested] 43+ messages in thread
* Re: [bitcoin-dev] A Proposed Compromise to the Block Size Limit 2015-06-27 17:20 ` Peter Todd @ 2015-06-27 17:26 ` Benjamin 2015-06-27 17:37 ` Peter Todd 0 siblings, 1 reply; 43+ messages in thread From: Benjamin @ 2015-06-27 17:26 UTC (permalink / raw) To: Peter Todd; +Cc: bitcoin-dev [-- Attachment #1: Type: text/plain, Size: 2920 bytes --] "Thus we have a fixed capacity system where access is mediated by supply and demand transaction fees." There is no supply and demand. That would mean users would be able to adapt fees and get different quality of service depending on current capacity. For example if peak load is 10x average load, then at those times fees would be higher and users would delay transactions to smooth out demand. On Sat, Jun 27, 2015 at 7:20 PM, Peter Todd <pete@petertodd.org> wrote: > On Sat, Jun 27, 2015 at 12:19:04PM -0400, Michael Naber wrote: > > That test seems like a reasonable suggestion; 840GB is not prohibitive > > given today's computing costs. What other than the successful result of > > that test would you want to see before agreeing to increase the block > size > > to 8MB? > > The two main things you need to show is: > > 1) Small, anonymous, miners remain approximately as profitable as large > miners, regardless of whether they are in the world, and even when > miners are under attack. Remember I'm talking about mining here, not > just hashing - the process of selling your hashpower to someone else who > is actually doing the mining. > > As for "approximately as profitable", based on a 10% profit margin, a 5% > profitability difference between a negligable ~0% hashing power miner > and a 50% hashing power miner is a good standard here. > > The hard part here is basically keeping orphan rates low, as the %5 > profitability different on %10 profit margin implies an orphan rate of > about 0.5% - roughly what we have right now if not actually a bit lower. > That also implies blocks propagate across the network in just a few > seconds in the worst case, where blocks are being generated with > transactions in them that are not already in mempools - circumventing > propagation optimization techniques. As we're talking about small > miners, we can't assume the miners are directly conneted to each other. > (which itself is dangerous from an attack point of view - if they're > directly connected they can be DoS attacked) > > 2) Medium to long term plan to pay for hashing power. Without scarcity > of blockchain space there is no reason to think that transaction fees > won't fall to the marginal cost of including a transaction, which > doesn't leave anything to pay for proof-of-work security. A proposal > meeting this criteria will have to be clever if you don't keep the > blocksize sufficiently limited that transaction fees are non-negligable. > One possible approach - if probably politically non-viable - would be to > change the inflation schedule so that the currency is inflated > indefinitely. > > -- > 'peter'[:-1]@petertodd.org > 0000000000000000007fc13ce02072d9cb2a6d51fae41fefcde7b3b283803d24 > > _______________________________________________ > bitcoin-dev mailing list > bitcoin-dev@lists.linuxfoundation.org > https://lists.linuxfoundation.org/mailman/listinfo/bitcoin-dev > > [-- Attachment #2: Type: text/html, Size: 4012 bytes --] ^ permalink raw reply [flat|nested] 43+ messages in thread
* Re: [bitcoin-dev] A Proposed Compromise to the Block Size Limit 2015-06-27 17:26 ` Benjamin @ 2015-06-27 17:37 ` Peter Todd 2015-06-27 17:46 ` Benjamin 0 siblings, 1 reply; 43+ messages in thread From: Peter Todd @ 2015-06-27 17:37 UTC (permalink / raw) To: Benjamin; +Cc: bitcoin-dev [-- Attachment #1: Type: text/plain, Size: 744 bytes --] On Sat, Jun 27, 2015 at 07:26:00PM +0200, Benjamin wrote: > "Thus we have a fixed capacity system where access is mediated by supply > and demand transaction fees." > > There is no supply and demand. That would mean users would be able to adapt > fees and get different quality of service depending on current capacity. > For example if peak load is 10x average load, then at those times fees > would be higher and users would delay transactions to smooth out demand. That's exactly how Bitcoin works already. See my article on how transaction fees work for more details: https://gist.github.com/petertodd/8e87c782bdf342ef18fb -- 'peter'[:-1]@petertodd.org 0000000000000000007fc13ce02072d9cb2a6d51fae41fefcde7b3b283803d24 [-- Attachment #2: Digital signature --] [-- Type: application/pgp-signature, Size: 650 bytes --] ^ permalink raw reply [flat|nested] 43+ messages in thread
* Re: [bitcoin-dev] A Proposed Compromise to the Block Size Limit 2015-06-27 17:37 ` Peter Todd @ 2015-06-27 17:46 ` Benjamin 2015-06-27 17:54 ` Peter Todd 0 siblings, 1 reply; 43+ messages in thread From: Benjamin @ 2015-06-27 17:46 UTC (permalink / raw) To: Peter Todd; +Cc: bitcoin-dev [-- Attachment #1: Type: text/plain, Size: 1233 bytes --] There is no ensured Quality of service, is there? If you "bid" higher, then you don't know what you are going to get. Also because you have no way of knowing what *others* are bidding. Only if you have auctions (increasing increments) you can establish a feedback loop to settle demand and supply. And the supply side doesn't adapt. Adapting supply would help resolve parts of the capacity problem. On Sat, Jun 27, 2015 at 7:37 PM, Peter Todd <pete@petertodd.org> wrote: > On Sat, Jun 27, 2015 at 07:26:00PM +0200, Benjamin wrote: > > "Thus we have a fixed capacity system where access is mediated by supply > > and demand transaction fees." > > > > There is no supply and demand. That would mean users would be able to > adapt > > fees and get different quality of service depending on current capacity. > > For example if peak load is 10x average load, then at those times fees > > would be higher and users would delay transactions to smooth out demand. > > That's exactly how Bitcoin works already. See my article on how > transaction fees work for more details: > > https://gist.github.com/petertodd/8e87c782bdf342ef18fb > > -- > 'peter'[:-1]@petertodd.org > 0000000000000000007fc13ce02072d9cb2a6d51fae41fefcde7b3b283803d24 > [-- Attachment #2: Type: text/html, Size: 1883 bytes --] ^ permalink raw reply [flat|nested] 43+ messages in thread
* Re: [bitcoin-dev] A Proposed Compromise to the Block Size Limit 2015-06-27 17:46 ` Benjamin @ 2015-06-27 17:54 ` Peter Todd 2015-06-27 17:58 ` Venzen Khaosan 2015-06-27 19:34 ` Benjamin 0 siblings, 2 replies; 43+ messages in thread From: Peter Todd @ 2015-06-27 17:54 UTC (permalink / raw) To: Benjamin; +Cc: bitcoin-dev [-- Attachment #1: Type: text/plain, Size: 1149 bytes --] On Sat, Jun 27, 2015 at 07:46:55PM +0200, Benjamin wrote: > There is no ensured Quality of service, is there? If you "bid" higher, then > you don't know what you are going to get. Also because you have no way of > knowing what *others* are bidding. Only if you have auctions (increasing > increments) you can establish a feedback loop to settle demand and supply. > And the supply side doesn't adapt. Adapting supply would help resolve parts > of the capacity problem. There's lots of markets where there is no assured quality of service, and where the bids others are making aren't known. Most financial markets work that way - there's only ever probabalistic guarantees that for a given amount of money you'll be able to buy a certain amount of gold at any given time for instance. Similarly for nearly all commodities the infrastructure required to mine those commodities has very little room for short, medium, or even long-term production increases, so whatever the production supply is at a given time is pretty much fixed. -- 'peter'[:-1]@petertodd.org 0000000000000000007fc13ce02072d9cb2a6d51fae41fefcde7b3b283803d24 [-- Attachment #2: Digital signature --] [-- Type: application/pgp-signature, Size: 650 bytes --] ^ permalink raw reply [flat|nested] 43+ messages in thread
* Re: [bitcoin-dev] A Proposed Compromise to the Block Size Limit 2015-06-27 17:54 ` Peter Todd @ 2015-06-27 17:58 ` Venzen Khaosan 2015-06-27 19:34 ` Benjamin 1 sibling, 0 replies; 43+ messages in thread From: Venzen Khaosan @ 2015-06-27 17:58 UTC (permalink / raw) To: bitcoin-dev -----BEGIN PGP SIGNED MESSAGE----- Hash: SHA1 Very interesting point and comparison. So the fee market is unknown, similar to a market maker's orderbook - except in the case of Bitcoin it is not being deliberately hidden from users, its just not knowable how miners are positioning at any given moment. On 06/28/2015 12:54 AM, Peter Todd wrote: > On Sat, Jun 27, 2015 at 07:46:55PM +0200, Benjamin wrote: >> There is no ensured Quality of service, is there? If you "bid" >> higher, then you don't know what you are going to get. Also >> because you have no way of knowing what *others* are bidding. >> Only if you have auctions (increasing increments) you can >> establish a feedback loop to settle demand and supply. And the >> supply side doesn't adapt. Adapting supply would help resolve >> parts of the capacity problem. > > There's lots of markets where there is no assured quality of > service, and where the bids others are making aren't known. Most > financial markets work that way - there's only ever probabalistic > guarantees that for a given amount of money you'll be able to buy a > certain amount of gold at any given time for instance. Similarly > for nearly all commodities the infrastructure required to mine > those commodities has very little room for short, medium, or even > long-term production increases, so whatever the production supply > is at a given time is pretty much fixed. > > > > _______________________________________________ bitcoin-dev mailing > list bitcoin-dev@lists.linuxfoundation.org > https://lists.linuxfoundation.org/mailman/listinfo/bitcoin-dev > -----BEGIN PGP SIGNATURE----- Version: GnuPG v1 iQEcBAEBAgAGBQJVjuRiAAoJEGwAhlQc8H1mjnwIAIiUSPf6agfMXsFgupoihsTV Pr1mJWHdLjrF5QadmdyooivYGPkY+zmfJ+N3fkr8l++PDGh03u0RgALf/gwJSSAQ qSeMmjSZb8ZEkyLlZAGVHT8Ph+lRda65CVxYspKu/54TolqEezOHVaon9uWYVjtB cSd8fWoqJMq05Pz25QPagxFUpXmtFX1KvxUWqeGkRsuqMgeWbCurQKpOhRXu48nH Si73iOIyDUT9i1WsPvlpOi0pSxDlGnkMQKaEyIN5JJfKo1imRAtKVRLZh43rXpSW jeZf8LMRwd49K4vnvHXZ0UbKWhpelh6XJari22citZ7yb5w5iENAcoP/cSGhLaY= =nfF5 -----END PGP SIGNATURE----- ^ permalink raw reply [flat|nested] 43+ messages in thread
* Re: [bitcoin-dev] A Proposed Compromise to the Block Size Limit 2015-06-27 17:54 ` Peter Todd 2015-06-27 17:58 ` Venzen Khaosan @ 2015-06-27 19:34 ` Benjamin 1 sibling, 0 replies; 43+ messages in thread From: Benjamin @ 2015-06-27 19:34 UTC (permalink / raw) To: Peter Todd; +Cc: bitcoin-dev [-- Attachment #1: Type: text/plain, Size: 1791 bytes --] On Sat, Jun 27, 2015 at 7:54 PM, Peter Todd <pete@petertodd.org> wrote: > On Sat, Jun 27, 2015 at 07:46:55PM +0200, Benjamin wrote: > > There is no ensured Quality of service, is there? If you "bid" higher, > then > > you don't know what you are going to get. Also because you have no way of > > knowing what *others* are bidding. Only if you have auctions (increasing > > increments) you can establish a feedback loop to settle demand and > supply. > > And the supply side doesn't adapt. Adapting supply would help resolve > parts > > of the capacity problem. > > There's lots of markets where there is no assured quality of service, > and where the bids others are making aren't known. Most financial > markets work that way - there's only ever probabalistic guarantees that > for a given amount of money you'll be able to buy a certain amount of > gold at any given time for instance. Similarly for nearly all > commodities the infrastructure required to mine those commodities has > very little room for short, medium, or even long-term production > increases, so whatever the production supply is at a given time is > pretty much fixed. > hmm? if the current ask for 1 ounce of gold is 100$, then you need to bid 100$ to get 1 ounce of gold. If tomorrow everyone agree 1ounce of gold should be worth 200$, then the bid moves accordingly. of course production changes based on prices. otherwise the economy would not function. if price of some stuff goes up, more people produce that stuff. in terms of a price for a transaction and the use of a blockchain, unfortunately there is not a way to just add computational supply. that's an inherent weakness of how blockchains are structured. ideally it would be as simple as demanding more resources as in scaling a webservices with AWS. [-- Attachment #2: Type: text/html, Size: 2327 bytes --] ^ permalink raw reply [flat|nested] 43+ messages in thread
* Re: [bitcoin-dev] A Proposed Compromise to the Block Size Limit 2015-06-27 14:39 Michael Naber 2015-06-27 15:21 ` Peter Todd @ 2015-06-27 15:33 ` Adam Back 2015-06-27 16:09 ` Michael Naber 1 sibling, 1 reply; 43+ messages in thread From: Adam Back @ 2015-06-27 15:33 UTC (permalink / raw) To: Michael Naber; +Cc: bitcoin-dev Michael Naber wrote: > Bitcoin Core must remain the lowest-fee, highest-capacity, most secure, distributed, fastest, overall best solution possible to the global consensus problem. Everyone here is excited about the potential of Bitcoin and would aspirationally like it to reach its full potential as fast as possible. But the block-size is not a free variable, half those parameters you listed are in conflict with each other. We're trying to improve both decentralisation and throughput short-term while people work on algorithmic improvements mid-term. If you are interested you can take a look through the proposals: http://lists.linuxfoundation.org/pipermail/bitcoin-dev/2015-June/008603.html Note that probably 99% of Bitcoin transactions already happen off-chain in exchanges, tipping services, hosted wallets etc. Maybe you're already using them, assuming you are a bitcoin user. They constitute an early stage layer 2, some of them even have on chain netting and scale faster than the block-chain. You can also read about layer 2, the lightning network paper and the duplex micropayment channel paper: http://lightning.network/lightning-network-paper-DRAFT-0.5.pdf http://www.tik.ee.ethz.ch/file/716b955c130e6c703fac336ea17b1670/duplex-micropayment-channels.pdf and read the development list and look at the code: http://lists.linuxfoundation.org/pipermail/lightning-dev/ https://github.com/ElementsProject/lightning Adam On 27 June 2015 at 16:39, Michael Naber <mickeybob@gmail.com> wrote: > Demand to participate in a low-fee global consensus network will likely > continue to rise. Technology already exists to meet that rising demand using > a blockchain with sufficient block size. Whether that blockchain is Bitcoin > Core with an increased block size, or whether it is a fork, market forces > make it almost certain that demand will be met by a blockchain with adequate > capacity. These forces ensure that not only today’s block size will be > increased, but also that future increases will occur should the demand > arise. > > In order to survive, Bitcoin Core must remain the lowest-fee, > highest-capacity, most secure, distributed, fastest, overall best solution > possible to the global consensus problem. Attempting to artificially > constrain the block size below the limits of technology for any reason is a > conflict with this objective and a threat to the survival of Bitcoin Core. > At the same time, scheduling large future increases or permitting unlimited > dynamic scaling of the block size limit raises concerns over availability of > future computing resources. Instead, we should manually increase the block > size limit as demand occurs, except in the special case that increasing the > limit would cause an undue burden upon users wishing to validate the > integrity of the blockchain. > > Compromise: Can we agree that raising the block size to a static 8MB now > with a plan to increase it further should demand necessitate except in the > special case above is a reasonable path forward? > > _______________________________________________ > bitcoin-dev mailing list > bitcoin-dev@lists.linuxfoundation.org > https://lists.linuxfoundation.org/mailman/listinfo/bitcoin-dev > ^ permalink raw reply [flat|nested] 43+ messages in thread
* Re: [bitcoin-dev] A Proposed Compromise to the Block Size Limit 2015-06-27 15:33 ` Adam Back @ 2015-06-27 16:09 ` Michael Naber 2015-06-27 16:28 ` Mark Friedenbach 2015-06-27 16:37 ` Peter Todd 0 siblings, 2 replies; 43+ messages in thread From: Michael Naber @ 2015-06-27 16:09 UTC (permalink / raw) To: Adam Back; +Cc: bitcoin-dev [-- Attachment #1: Type: text/plain, Size: 3904 bytes --] The goal of Bitcoin Core is to meet the demand for global consensus as effectively as possible. Please let's keep the conversation on how to best meet that goal. The off-chain solutions you enumerate are are useful solutions in their respective domains, but none of them solves the global consensus problem with any greater efficiency than Bitcoin does. On Sat, Jun 27, 2015 at 11:33 AM, Adam Back <adam@cypherspace.org> wrote: > Michael Naber wrote: > > Bitcoin Core must remain the lowest-fee, highest-capacity, most secure, > distributed, fastest, overall best solution possible to the global > consensus problem. > > Everyone here is excited about the potential of Bitcoin and would > aspirationally like it to reach its full potential as fast as > possible. But the block-size is not a free variable, half those > parameters you listed are in conflict with each other. We're trying > to improve both decentralisation and throughput short-term while > people work on algorithmic improvements mid-term. If you are > interested you can take a look through the proposals: > > > http://lists.linuxfoundation.org/pipermail/bitcoin-dev/2015-June/008603.html > > Note that probably 99% of Bitcoin transactions already happen > off-chain in exchanges, tipping services, hosted wallets etc. Maybe > you're already using them, assuming you are a bitcoin user. > They constitute an early stage layer 2, some of them even have on > chain netting and scale faster than the block-chain. > > You can also read about layer 2, the lightning network paper and the > duplex micropayment channel paper: > > http://lightning.network/lightning-network-paper-DRAFT-0.5.pdf > > http://www.tik.ee.ethz.ch/file/716b955c130e6c703fac336ea17b1670/duplex-micropayment-channels.pdf > > and read the development list and look at the code: > > http://lists.linuxfoundation.org/pipermail/lightning-dev/ > https://github.com/ElementsProject/lightning > > Adam > > > On 27 June 2015 at 16:39, Michael Naber <mickeybob@gmail.com> wrote: > > Demand to participate in a low-fee global consensus network will likely > > continue to rise. Technology already exists to meet that rising demand > using > > a blockchain with sufficient block size. Whether that blockchain is > Bitcoin > > Core with an increased block size, or whether it is a fork, market forces > > make it almost certain that demand will be met by a blockchain with > adequate > > capacity. These forces ensure that not only today’s block size will be > > increased, but also that future increases will occur should the demand > > arise. > > > > In order to survive, Bitcoin Core must remain the lowest-fee, > > highest-capacity, most secure, distributed, fastest, overall best > solution > > possible to the global consensus problem. Attempting to artificially > > constrain the block size below the limits of technology for any reason > is a > > conflict with this objective and a threat to the survival of Bitcoin > Core. > > At the same time, scheduling large future increases or permitting > unlimited > > dynamic scaling of the block size limit raises concerns over > availability of > > future computing resources. Instead, we should manually increase the > block > > size limit as demand occurs, except in the special case that increasing > the > > limit would cause an undue burden upon users wishing to validate the > > integrity of the blockchain. > > > > Compromise: Can we agree that raising the block size to a static 8MB now > > with a plan to increase it further should demand necessitate except in > the > > special case above is a reasonable path forward? > > > > _______________________________________________ > > bitcoin-dev mailing list > > bitcoin-dev@lists.linuxfoundation.org > > https://lists.linuxfoundation.org/mailman/listinfo/bitcoin-dev > > > [-- Attachment #2: Type: text/html, Size: 5279 bytes --] ^ permalink raw reply [flat|nested] 43+ messages in thread
* Re: [bitcoin-dev] A Proposed Compromise to the Block Size Limit 2015-06-27 16:09 ` Michael Naber @ 2015-06-27 16:28 ` Mark Friedenbach 2015-06-27 16:37 ` Peter Todd 1 sibling, 0 replies; 43+ messages in thread From: Mark Friedenbach @ 2015-06-27 16:28 UTC (permalink / raw) To: Michael Naber; +Cc: bitcoin-dev [-- Attachment #1: Type: text/plain, Size: 4666 bytes --] I really suggest you look into the layer2 systems Adam pointed to, as you appear to be misinformed about their properties. There are many proposals which really do achieve global consensus using the block chain, just in a delayed (and cached) fashion that is still 100% safe. It is possible to go off-chain without losing the trustlessness and security of the block chain. On Sat, Jun 27, 2015 at 9:09 AM, Michael Naber <mickeybob@gmail.com> wrote: > The goal of Bitcoin Core is to meet the demand for global consensus as > effectively as possible. Please let's keep the conversation on how to best > meet that goal. > > The off-chain solutions you enumerate are are useful solutions in their > respective domains, but none of them solves the global consensus problem > with any greater efficiency than Bitcoin does. > > > On Sat, Jun 27, 2015 at 11:33 AM, Adam Back <adam@cypherspace.org> wrote: > >> Michael Naber wrote: >> > Bitcoin Core must remain the lowest-fee, highest-capacity, most secure, >> distributed, fastest, overall best solution possible to the global >> consensus problem. >> >> Everyone here is excited about the potential of Bitcoin and would >> aspirationally like it to reach its full potential as fast as >> possible. But the block-size is not a free variable, half those >> parameters you listed are in conflict with each other. We're trying >> to improve both decentralisation and throughput short-term while >> people work on algorithmic improvements mid-term. If you are >> interested you can take a look through the proposals: >> >> >> http://lists.linuxfoundation.org/pipermail/bitcoin-dev/2015-June/008603.html >> >> Note that probably 99% of Bitcoin transactions already happen >> off-chain in exchanges, tipping services, hosted wallets etc. Maybe >> you're already using them, assuming you are a bitcoin user. >> They constitute an early stage layer 2, some of them even have on >> chain netting and scale faster than the block-chain. >> >> You can also read about layer 2, the lightning network paper and the >> duplex micropayment channel paper: >> >> http://lightning.network/lightning-network-paper-DRAFT-0.5.pdf >> >> http://www.tik.ee.ethz.ch/file/716b955c130e6c703fac336ea17b1670/duplex-micropayment-channels.pdf >> >> and read the development list and look at the code: >> >> http://lists.linuxfoundation.org/pipermail/lightning-dev/ >> https://github.com/ElementsProject/lightning >> >> Adam >> >> >> On 27 June 2015 at 16:39, Michael Naber <mickeybob@gmail.com> wrote: >> > Demand to participate in a low-fee global consensus network will likely >> > continue to rise. Technology already exists to meet that rising demand >> using >> > a blockchain with sufficient block size. Whether that blockchain is >> Bitcoin >> > Core with an increased block size, or whether it is a fork, market >> forces >> > make it almost certain that demand will be met by a blockchain with >> adequate >> > capacity. These forces ensure that not only today’s block size will be >> > increased, but also that future increases will occur should the demand >> > arise. >> > >> > In order to survive, Bitcoin Core must remain the lowest-fee, >> > highest-capacity, most secure, distributed, fastest, overall best >> solution >> > possible to the global consensus problem. Attempting to artificially >> > constrain the block size below the limits of technology for any reason >> is a >> > conflict with this objective and a threat to the survival of Bitcoin >> Core. >> > At the same time, scheduling large future increases or permitting >> unlimited >> > dynamic scaling of the block size limit raises concerns over >> availability of >> > future computing resources. Instead, we should manually increase the >> block >> > size limit as demand occurs, except in the special case that increasing >> the >> > limit would cause an undue burden upon users wishing to validate the >> > integrity of the blockchain. >> > >> > Compromise: Can we agree that raising the block size to a static 8MB now >> > with a plan to increase it further should demand necessitate except in >> the >> > special case above is a reasonable path forward? >> > >> > _______________________________________________ >> > bitcoin-dev mailing list >> > bitcoin-dev@lists.linuxfoundation.org >> > https://lists.linuxfoundation.org/mailman/listinfo/bitcoin-dev >> > >> > > > _______________________________________________ > bitcoin-dev mailing list > bitcoin-dev@lists.linuxfoundation.org > https://lists.linuxfoundation.org/mailman/listinfo/bitcoin-dev > > [-- Attachment #2: Type: text/html, Size: 6477 bytes --] ^ permalink raw reply [flat|nested] 43+ messages in thread
* Re: [bitcoin-dev] A Proposed Compromise to the Block Size Limit 2015-06-27 16:09 ` Michael Naber 2015-06-27 16:28 ` Mark Friedenbach @ 2015-06-27 16:37 ` Peter Todd 2015-06-27 17:25 ` Michael Naber 1 sibling, 1 reply; 43+ messages in thread From: Peter Todd @ 2015-06-27 16:37 UTC (permalink / raw) To: Michael Naber; +Cc: bitcoin-dev [-- Attachment #1: Type: text/plain, Size: 1375 bytes --] On Sat, Jun 27, 2015 at 12:09:16PM -0400, Michael Naber wrote: > The goal of Bitcoin Core is to meet the demand for global consensus as > effectively as possible. Please let's keep the conversation on how to best > meet that goal. Keep in mind that Andresen and Hearn both propose that the majority of Bitcoin users, even businesses, abandon the global consensus technology aspect of Bitcoin - running full nodes - and instead adopt trust technology instead - running SPV nodes. We're very much focused on meeting the demand for global consensus technology, but unfortunately global consensus is also has inherently O(n^2) scaling with current approaches available. Thus we have a fixed capacity system where access is mediated by supply and demand transaction fees. > The off-chain solutions you enumerate are are useful solutions in their > respective domains, but none of them solves the global consensus problem > with any greater efficiency than Bitcoin does. Solutions like (hub-and-spoke) payment channels, Lightning, etc. allow users of the global consensus technology in Bitcoin to use that technology in much more effcient ways, leveraging a relatively small amount of global consensus to do large numbers of transactions trustlessly. -- 'peter'[:-1]@petertodd.org 0000000000000000007fc13ce02072d9cb2a6d51fae41fefcde7b3b283803d24 [-- Attachment #2: Digital signature --] [-- Type: application/pgp-signature, Size: 650 bytes --] ^ permalink raw reply [flat|nested] 43+ messages in thread
* Re: [bitcoin-dev] A Proposed Compromise to the Block Size Limit 2015-06-27 16:37 ` Peter Todd @ 2015-06-27 17:25 ` Michael Naber 2015-06-27 17:34 ` Peter Todd 0 siblings, 1 reply; 43+ messages in thread From: Michael Naber @ 2015-06-27 17:25 UTC (permalink / raw) To: Peter Todd, Mark Friedenbach, Adam Back; +Cc: bitcoin-dev [-- Attachment #1: Type: text/plain, Size: 1920 bytes --] Global network consensus means that there is global network recognition that a particular transaction has occurred and is irreversible. The off-chain solutions you describe, while probably useful for other purposes, do not exhibit this characteristic and so they are not global network consensus networks. Bitcoin Core scales as O(N), where N is the number of transactions. Can we do better than this while still achieving global consensus? On Sat, Jun 27, 2015 at 12:37 PM, Peter Todd <pete@petertodd.org> wrote: > On Sat, Jun 27, 2015 at 12:09:16PM -0400, Michael Naber wrote: > > The goal of Bitcoin Core is to meet the demand for global consensus as > > effectively as possible. Please let's keep the conversation on how to > best > > meet that goal. > > Keep in mind that Andresen and Hearn both propose that the majority of > Bitcoin users, even businesses, abandon the global consensus technology > aspect of Bitcoin - running full nodes - and instead adopt trust > technology instead - running SPV nodes. > > We're very much focused on meeting the demand for global consensus > technology, but unfortunately global consensus is also has inherently > O(n^2) scaling with current approaches available. Thus we have a fixed > capacity system where access is mediated by supply and demand > transaction fees. > > > The off-chain solutions you enumerate are are useful solutions in their > > respective domains, but none of them solves the global consensus problem > > with any greater efficiency than Bitcoin does. > > Solutions like (hub-and-spoke) payment channels, Lightning, etc. allow > users of the global consensus technology in Bitcoin to use that > technology in much more effcient ways, leveraging a relatively small > amount of global consensus to do large numbers of transactions > trustlessly. > > -- > 'peter'[:-1]@petertodd.org > 0000000000000000007fc13ce02072d9cb2a6d51fae41fefcde7b3b283803d24 > [-- Attachment #2: Type: text/html, Size: 2557 bytes --] ^ permalink raw reply [flat|nested] 43+ messages in thread
* Re: [bitcoin-dev] A Proposed Compromise to the Block Size Limit 2015-06-27 17:25 ` Michael Naber @ 2015-06-27 17:34 ` Peter Todd 2015-06-27 18:02 ` Jameson Lopp 0 siblings, 1 reply; 43+ messages in thread From: Peter Todd @ 2015-06-27 17:34 UTC (permalink / raw) To: Michael Naber; +Cc: bitcoin-dev [-- Attachment #1: Type: text/plain, Size: 1758 bytes --] On Sat, Jun 27, 2015 at 01:25:14PM -0400, Michael Naber wrote: > Global network consensus means that there is global network recognition > that a particular transaction has occurred and is irreversible. The > off-chain solutions you describe, while probably useful for other purposes, > do not exhibit this characteristic and so they are not global network > consensus networks. Hub-and-spoke payment channels and the Lightning network are not off-chain solutions, they are ways to more efficiently use on-chain transactions to achive the goal of moving assets from point a to point b, resulting in more economic transactions being done with fewer - but not zero! - blockchain transactions. Off-chain transaction systems such as Changetip allow economic transactions to happen with no blockchain transactions at all. > Bitcoin Core scales as O(N), where N is the number of transactions. Can we > do better than this while still achieving global consensus? No, Bitcoin the network scales with O(n^2) with your above criteria, as each node creates k transactions, thus each node has to verify k*n transactions, resulting in O(n^2) total work. For Bitcoin to have O(n) scaling you have to assume that the number of validation nodes doesn't scale with the number of users, thus resulting in a system where users trust others to do validation for them. That is not a global consensus system; that's a trust-based system. There's nothing inherently wrong with that, but why change Bitcoin itself into a trust-based system, when you can preserve the global consensus functionality, and built a trust-based system on top of it? -- 'peter'[:-1]@petertodd.org 0000000000000000007fc13ce02072d9cb2a6d51fae41fefcde7b3b283803d24 [-- Attachment #2: Digital signature --] [-- Type: application/pgp-signature, Size: 650 bytes --] ^ permalink raw reply [flat|nested] 43+ messages in thread
* Re: [bitcoin-dev] A Proposed Compromise to the Block Size Limit 2015-06-27 17:34 ` Peter Todd @ 2015-06-27 18:02 ` Jameson Lopp 2015-06-27 18:47 ` Peter Todd 0 siblings, 1 reply; 43+ messages in thread From: Jameson Lopp @ 2015-06-27 18:02 UTC (permalink / raw) To: Peter Todd; +Cc: bitcoin-dev [-- Attachment #1: Type: text/plain, Size: 2460 bytes --] On Sat, Jun 27, 2015 at 1:34 PM, Peter Todd <pete@petertodd.org> wrote: > On Sat, Jun 27, 2015 at 01:25:14PM -0400, Michael Naber wrote: > > Global network consensus means that there is global network recognition > > that a particular transaction has occurred and is irreversible. The > > off-chain solutions you describe, while probably useful for other > purposes, > > do not exhibit this characteristic and so they are not global network > > consensus networks. > > Hub-and-spoke payment channels and the Lightning network are not > off-chain solutions, they are ways to more efficiently use on-chain > transactions to achive the goal of moving assets from point a to point > b, resulting in more economic transactions being done with fewer - but > not zero! - blockchain transactions. > > Off-chain transaction systems such as Changetip allow economic > transactions to happen with no blockchain transactions at all. > > > Bitcoin Core scales as O(N), where N is the number of transactions. Can > we > > do better than this while still achieving global consensus? > > No, Bitcoin the network scales with O(n^2) with your above criteria, as > each node creates k transactions, thus each node has to verify k*n > transactions, resulting in O(n^2) total work. > > For Bitcoin to have O(n) scaling you have to assume that the number of > validation nodes doesn't scale with the number of users, thus resulting > in a system where users trust others to do validation for them. That is > not a global consensus system; that's a trust-based system. > > Why does it matter what the "total work" of the network is? Anyone who is participating as a node on the network only cares about the resources required to run their own node, not the resources everyone else needs to run their nodes. Also, no assumption needed, it is quite clear that the number of nodes is not scaling along with the number of users. If anything it appears to be inversely proportional. > There's nothing inherently wrong with that, but why change Bitcoin > itself into a trust-based system, when you can preserve the global > consensus functionality, and built a trust-based system on top of it? > > -- > 'peter'[:-1]@petertodd.org > 0000000000000000007fc13ce02072d9cb2a6d51fae41fefcde7b3b283803d24 > > _______________________________________________ > bitcoin-dev mailing list > bitcoin-dev@lists.linuxfoundation.org > https://lists.linuxfoundation.org/mailman/listinfo/bitcoin-dev > > [-- Attachment #2: Type: text/html, Size: 3431 bytes --] ^ permalink raw reply [flat|nested] 43+ messages in thread
* Re: [bitcoin-dev] A Proposed Compromise to the Block Size Limit 2015-06-27 18:02 ` Jameson Lopp @ 2015-06-27 18:47 ` Peter Todd 0 siblings, 0 replies; 43+ messages in thread From: Peter Todd @ 2015-06-27 18:47 UTC (permalink / raw) To: Jameson Lopp; +Cc: bitcoin-dev [-- Attachment #1: Type: text/plain, Size: 1184 bytes --] On Sat, Jun 27, 2015 at 02:02:05PM -0400, Jameson Lopp wrote: > > For Bitcoin to have O(n) scaling you have to assume that the number of > > validation nodes doesn't scale with the number of users, thus resulting > > in a system where users trust others to do validation for them. That is > > not a global consensus system; that's a trust-based system. > > > > > Why does it matter what the "total work" of the network is? Anyone who is > participating as a node on the network only cares about the resources > required to run their own node, not the resources everyone else needs to > run their nodes. > > Also, no assumption needed, it is quite clear that the number of nodes is > not scaling along with the number of users. If anything it appears to be > inversely proportional. Which is a huge problem. Concretely, what O(n^2) scaling means is that the more Bitcoin is adopted, the harder it is to use in a decentralized way that doesn't trust others; the blocksize limit puts a cap on how centralized Bitcoin can get in a given technological landscape. -- 'peter'[:-1]@petertodd.org 0000000000000000007fc13ce02072d9cb2a6d51fae41fefcde7b3b283803d24 [-- Attachment #2: Digital signature --] [-- Type: application/pgp-signature, Size: 650 bytes --] ^ permalink raw reply [flat|nested] 43+ messages in thread
end of thread, other threads:[~2015-07-10 2:55 UTC | newest] Thread overview: 43+ messages (download: mbox.gz / follow: Atom feed) -- links below jump to the message on this page -- 2015-06-28 5:34 [bitcoin-dev] A Proposed Compromise to the Block Size Limit Raystonn 2015-06-28 10:07 ` Adam Back 2015-06-28 10:29 ` Benjamin 2015-06-28 12:37 ` Adam Back 2015-06-28 16:32 ` Raystonn . 2015-06-28 17:12 ` Mark Friedenbach 2015-06-28 17:18 ` Benjamin 2015-06-28 17:29 ` Gavin Andresen 2015-06-28 17:45 ` Mark Friedenbach 2015-06-28 17:51 ` Adam Back 2015-06-28 18:58 ` Adam Back 2015-06-28 21:05 ` Gavin Andresen 2015-06-28 21:23 ` Michael Naber 2015-06-28 22:07 ` Adam Back 2015-06-29 0:59 ` Eric Lombrozo 2015-06-29 1:13 ` Eric Lombrozo 2015-06-29 1:45 ` Andy Schroder 2015-06-30 0:42 ` Tom Harding 2015-07-10 2:55 ` Tom Harding 2015-06-28 17:53 ` Jorge Timón 2015-06-28 19:22 ` Andrew Lapp 2015-06-28 19:40 ` Benjamin 2015-06-28 12:32 ` Milly Bitcoin -- strict thread matches above, loose matches on Subject: below -- 2015-06-27 14:39 Michael Naber 2015-06-27 15:21 ` Peter Todd 2015-06-27 15:29 ` Randi Joseph 2015-06-27 15:32 ` Peter Todd 2015-06-27 16:19 ` Michael Naber 2015-06-27 17:20 ` Peter Todd 2015-06-27 17:26 ` Benjamin 2015-06-27 17:37 ` Peter Todd 2015-06-27 17:46 ` Benjamin 2015-06-27 17:54 ` Peter Todd 2015-06-27 17:58 ` Venzen Khaosan 2015-06-27 19:34 ` Benjamin 2015-06-27 15:33 ` Adam Back 2015-06-27 16:09 ` Michael Naber 2015-06-27 16:28 ` Mark Friedenbach 2015-06-27 16:37 ` Peter Todd 2015-06-27 17:25 ` Michael Naber 2015-06-27 17:34 ` Peter Todd 2015-06-27 18:02 ` Jameson Lopp 2015-06-27 18:47 ` Peter Todd
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