[bitcoin-dev] A compromise between BIP101 and Pieter's proposal

[bitcoin-dev] A compromise between BIP101 and Pieter's proposal

[jl2012]

There is a summary of the proposals in my previous mail at  
https://lists.linuxfoundation.org/pipermail/bitcoin-dev/2015-July/009808.html

I think there could be a compromise between Gavin's BIP101 and  
Pieter's proposal (called "BIP103" here). Below I'm trying to play  
with the parameters, which reasons:

1. Initiation: BIP34 style voting, with support of 750 out of the last  
1000 blocks. The "hardfork bit" mechanism might be used:  
http://lists.linuxfoundation.org/pipermail/bitcoin-dev/2015-July/009576.html

Rationale: This follows BIP101, to make sure the new chain is secure.  
Also, no miner would like to be the first one to mine a large block if  
they don't know how many others would accept it.

2. Starting date: 30 days after 75% miner support, but not before  
2016-01-12 00:00 UTC

Rationale: A 30-day grace period is given to make sure everyone has  
enough time to follow. This is a compromise between 14 day in BIP101  
and 1 year in BIP103. I tend to agree with BIP101. Even 1 year is  
given, people will just do it on the 364th day if they opt to  
procrastinate.

2016-01-12 00:00 UTC is Monday evening in US and Tuesday morning in  
China. Most pool operators and devs should be back from new year  
holiday and not sleeping. (If the initiation is delayed, we may  
require that it must be UTC Tuesday midnight)

3. The block size at 2016-01-12 will be 1,414,213 bytes, and  
multiplied by 1.414213 by every 2^23 seconds (97 days) until exactly  
8MB is reached on 2017-05-11.

Rationale: Instead of jumping to 8MB, I suggest to increase it  
gradually to 8MB in 16 months. 8MB should not be particularly painful  
to run even with current equipment (you may see my earlier post on  
bitctointalk: https://bitcointalk.org/index.php?topic=1054482.0). 8MB  
is also agreed by Chinese miners, who control >60% of the network.

4. After 8MB is reached, the block size will be increased by 6.714%  
every 97 days, which is equivalent to exactly octuple (8x) every 8.5  
years, or double every 2.9 years, or +27.67% per year. Stop growth at  
4096MB on 2042-11-17.

Rationale: This is a compromise between 17.7% p.a. of BIP103 and 41.4%  
p.a. of BIP101. This will take us almost 8 years from now just to go  
back to the original 32MB size (4 years for BIP101 and 22 years for  
BIP103)

SSD price is expected to drop by >50%/year in the coming years. In  
2020, we will only need to pay 2% of current price for SSD. 98% price  
reduction is enough for 40 years of 27.67% growth.
Source: http://wikibon.org/wiki/v/Evolution_of_All-Flash_Array_Architectures

Global bandwidth is expected to grow by 37%/year until 2021 so 27.67%  
should be safe at least for the coming 10 years.
Source:  
https://www.telegeography.com/research-services/global-bandwidth-forecast-service/

The final cap is a compromise between 8192MB@2036 of BIP101 and  
2048MB@2063 of BIP103


-----------------------------------

Generally speaking, I think we need to have a faster growth in the  
beginning, just to normalize the block size to a more reasonable one.  
After all, the 1MB cap was introduced when Bitcoin was practically  
worthless and with inefficient design. We need to decide a new  
"optimal" size based on current adoption and technology.

About "fee market": I do agree we need a fee market, but the fee  
pressure must not be too high at this moment when block reward is  
still miner's main income source. We already have a fee market: miners  
will avoid building big blocks with low fee because that will increase  
the orphan risk for nothing.

About "secondary layer": I respect everyone building secondary layer  
over the blockchain. However, while the SWIFT settlement network is  
processing 300tps, Bitcoin's current 7tps is just nothing more than an  
experiment. If the underlying settlement system does not have enough  
capacity, any secondary layer built on it will also fall apart. For  
example, people may DoS attack a Lightening network by provoking a  
huge amount of settlement request which some may not be confirmed on  
time. Ultimately, this will increase the risk of running a LN service  
and increase the tx fee inside LN. After all, the value of secondary  
layer primarily comes from instant confirmation, not scarcity of the  
block space.

Re: [bitcoin-dev] A compromise between BIP101 and Pieter's proposal

[Adam Back]

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I think trust the data-center logic obviously fails, and I was talking
about this scenario in the post you are replying to.  You are trusting the
data-center operator period.  If one could trust data-centers to run
verified code, to not get hacked, filter traffic, respond to court orders
without notifying you etc that would be great but that's unfortunately not
what happens.

Data-center operators are bound to follow laws, including NSLs and gag
orders.  They also get hacked, employ humans who can be corrupt,
blackmailed, and themselves centralisation points for policy attack.
Snowden related disclosures and keeping aware of security show this is very
real.

This isn't much about bitcoin even, its just security reality for hosting
anything intended to be secure via decentralisation, or just hosting in
general while at risk of political or policy attack.

Adam
On Jul 31, 2015 10:39, "jl2012 via bitcoin-dev" <
bitcoin-dev@lists.linuxfoundation.org> wrote:

> There is a summary of the proposals in my previous mail at
> https://lists.linuxfoundation.org/pipermail/bitcoin-dev/2015-July/009808.html
>
> I think there could be a compromise between Gavin's BIP101 and Pieter's
> proposal (called "BIP103" here). Below I'm trying to play with the
> parameters, which reasons:
>
> 1. Initiation: BIP34 style voting, with support of 750 out of the last
> 1000 blocks. The "hardfork bit" mechanism might be used:
> http://lists.linuxfoundation.org/pipermail/bitcoin-dev/2015-July/009576.html
>
> Rationale: This follows BIP101, to make sure the new chain is secure.
> Also, no miner would like to be the first one to mine a large block if they
> don't know how many others would accept it.
>
> 2. Starting date: 30 days after 75% miner support, but not before
> 2016-01-12 00:00 UTC
>
> Rationale: A 30-day grace period is given to make sure everyone has enough
> time to follow. This is a compromise between 14 day in BIP101 and 1 year in
> BIP103. I tend to agree with BIP101. Even 1 year is given, people will just
> do it on the 364th day if they opt to procrastinate.
>
> 2016-01-12 00:00 UTC is Monday evening in US and Tuesday morning in China.
> Most pool operators and devs should be back from new year holiday and not
> sleeping. (If the initiation is delayed, we may require that it must be UTC
> Tuesday midnight)
>
> 3. The block size at 2016-01-12 will be 1,414,213 bytes, and multiplied by
> 1.414213 by every 2^23 seconds (97 days) until exactly 8MB is reached on
> 2017-05-11.
>
> Rationale: Instead of jumping to 8MB, I suggest to increase it gradually
> to 8MB in 16 months. 8MB should not be particularly painful to run even
> with current equipment (you may see my earlier post on bitctointalk:
> https://bitcointalk.org/index.php?topic=1054482.0). 8MB is also agreed by
> Chinese miners, who control >60% of the network.
>
> 4. After 8MB is reached, the block size will be increased by 6.714% every
> 97 days, which is equivalent to exactly octuple (8x) every 8.5 years, or
> double every 2.9 years, or +27.67% per year. Stop growth at 4096MB on
> 2042-11-17.
>
> Rationale: This is a compromise between 17.7% p.a. of BIP103 and 41.4%
> p.a. of BIP101. This will take us almost 8 years from now just to go back
> to the original 32MB size (4 years for BIP101 and 22 years for BIP103)
>
> SSD price is expected to drop by >50%/year in the coming years. In 2020,
> we will only need to pay 2% of current price for SSD. 98% price reduction
> is enough for 40 years of 27.67% growth.
> Source:
> http://wikibon.org/wiki/v/Evolution_of_All-Flash_Array_Architectures
>
> Global bandwidth is expected to grow by 37%/year until 2021 so 27.67%
> should be safe at least for the coming 10 years.
> Source:
> https://www.telegeography.com/research-services/global-bandwidth-forecast-service/
>
> The final cap is a compromise between 8192MB@2036 of BIP101 and
> 2048MB@2063 of BIP103
>
>
> -----------------------------------
>
> Generally speaking, I think we need to have a faster growth in the
> beginning, just to normalize the block size to a more reasonable one. After
> all, the 1MB cap was introduced when Bitcoin was practically worthless and
> with inefficient design. We need to decide a new "optimal" size based on
> current adoption and technology.
>
> About "fee market": I do agree we need a fee market, but the fee pressure
> must not be too high at this moment when block reward is still miner's main
> income source. We already have a fee market: miners will avoid building big
> blocks with low fee because that will increase the orphan risk for nothing.
>
> About "secondary layer": I respect everyone building secondary layer over
> the blockchain. However, while the SWIFT settlement network is processing
> 300tps, Bitcoin's current 7tps is just nothing more than an experiment. If
> the underlying settlement system does not have enough capacity, any
> secondary layer built on it will also fall apart. For example, people may
> DoS attack a Lightening network by provoking a huge amount of settlement
> request which some may not be confirmed on time. Ultimately, this will
> increase the risk of running a LN service and increase the tx fee inside
> LN. After all, the value of secondary layer primarily comes from instant
> confirmation, not scarcity of the block space.
>
> _______________________________________________
> bitcoin-dev mailing list
> bitcoin-dev@lists.linuxfoundation.org
> https://lists.linuxfoundation.org/mailman/listinfo/bitcoin-dev
>

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Re: [bitcoin-dev] A compromise between BIP101 and Pieter's proposal

[jl2012]

Yes, data-center operators are bound to follow laws, including NSLs  
and gag orders. How about your ISP? Is it bound to follow laws,  
including NSLs and gag orders?
https://edri.org/irish_isp_introduces_blocking/

Do you think everyone should run a full node behind TOR? No way, your  
repressive government could just block TOR:
http://www.technologyreview.com/view/427413/how-china-blocks-the-tor-anonymity-network/

Or they could raid your home and seize your Raspberry Pi if they  
couldn't read your encrypted internet traffic. You will have a hard  
time proving you are not using TOR for child porn or cocaine.
https://en.wikipedia.org/wiki/Encryption_ban_proposal_in_the_United_Kingdom

If you are living in a country like this, running Bitcoin in an  
offshore VPS could be much easier. Anyway, Bitcoin shouldn't be your  
first thing to worry about. Revolution is probably your only choice.

Data-centers would get hacked. How about your Raspberry Pi?

Corrupt data-center employee is probably the only valid concern.  
However, there is nothing (except cost) to stop you from establishing  
multiple full nodes all over the world. If your Raspberry Pi at home  
could no longer fully validate the chain, it could become a  
header-only node to make sure your VPS full nodes are following the  
correct chaintip. You may even buy hourly charged cloud hosting in  
different countries to run header-only nodes at negligible cost.

There is no single point of failure in a decentralized network. Having  
multiple nodes will also save you from Sybil attack and geopolitical  
risks. Again, if all data-centres and governments in the world are  
turning against Bitcoin, it is delusional to think we could fight  
against them without using any real weapon.

By the way, I'm quite confident that my current full node at home are  
capable of running at 8MB blocks.


Quoting Adam Back <adam@cypherspace.org>:

> I think trust the data-center logic obviously fails, and I was talking
> about this scenario in the post you are replying to.  You are trusting the
> data-center operator period.  If one could trust data-centers to run
> verified code, to not get hacked, filter traffic, respond to court orders
> without notifying you etc that would be great but that's unfortunately not
> what happens.
>
> Data-center operators are bound to follow laws, including NSLs and gag
> orders.  They also get hacked, employ humans who can be corrupt,
> blackmailed, and themselves centralisation points for policy attack.
> Snowden related disclosures and keeping aware of security show this is very
> real.
>
> This isn't much about bitcoin even, its just security reality for hosting
> anything intended to be secure via decentralisation, or just hosting in
> general while at risk of political or policy attack.
>
> Adam

Re: [bitcoin-dev] A compromise between BIP101 and Pieter's proposal

[Adam Back]

That's all well and fine.  But the pattern of your argument I would
say is "arguing security down" ie saying something is not secure
anyway, nothing is secure, everything could be hacked, so lets forget
that and give up, so that what is left is basically no
decentralisation security.

It is not paranoid to take decentralisation security seriously, it is
necessary because it is critical to Bitcoin.  Security in depth
meaning take what security you can get from available defences.

Adam

On 31 July 2015 at 15:07,  <jl2012@xbt.hk> wrote:
> Yes, data-center operators are bound to follow laws, including NSLs and gag
> orders. How about your ISP? Is it bound to follow laws, including NSLs and
> gag orders?
> https://edri.org/irish_isp_introduces_blocking/
>
> Do you think everyone should run a full node behind TOR? No way, your
> repressive government could just block TOR:
> http://www.technologyreview.com/view/427413/how-china-blocks-the-tor-anonymity-network/
>
> Or they could raid your home and seize your Raspberry Pi if they couldn't
> read your encrypted internet traffic. You will have a hard time proving you
> are not using TOR for child porn or cocaine.
> https://en.wikipedia.org/wiki/Encryption_ban_proposal_in_the_United_Kingdom
>
> If you are living in a country like this, running Bitcoin in an offshore VPS
> could be much easier. Anyway, Bitcoin shouldn't be your first thing to worry
> about. Revolution is probably your only choice.
>
> Data-centers would get hacked. How about your Raspberry Pi?
>
> Corrupt data-center employee is probably the only valid concern. However,
> there is nothing (except cost) to stop you from establishing multiple full
> nodes all over the world. If your Raspberry Pi at home could no longer fully
> validate the chain, it could become a header-only node to make sure your VPS
> full nodes are following the correct chaintip. You may even buy hourly
> charged cloud hosting in different countries to run header-only nodes at
> negligible cost.
>
> There is no single point of failure in a decentralized network. Having
> multiple nodes will also save you from Sybil attack and geopolitical risks.
> Again, if all data-centres and governments in the world are turning against
> Bitcoin, it is delusional to think we could fight against them without using
> any real weapon.
>
> By the way, I'm quite confident that my current full node at home are
> capable of running at 8MB blocks.
>
>
>
> Quoting Adam Back <adam@cypherspace.org>:
>
>> I think trust the data-center logic obviously fails, and I was talking
>> about this scenario in the post you are replying to.  You are trusting the
>> data-center operator period.  If one could trust data-centers to run
>> verified code, to not get hacked, filter traffic, respond to court orders
>> without notifying you etc that would be great but that's unfortunately not
>> what happens.
>>
>> Data-center operators are bound to follow laws, including NSLs and gag
>> orders.  They also get hacked, employ humans who can be corrupt,
>> blackmailed, and themselves centralisation points for policy attack.
>> Snowden related disclosures and keeping aware of security show this is
>> very
>> real.
>>
>> This isn't much about bitcoin even, its just security reality for hosting
>> anything intended to be secure via decentralisation, or just hosting in
>> general while at risk of political or policy attack.
>>
>> Adam
>
>
>

Re: [bitcoin-dev] A compromise between BIP101 and Pieter's proposal

[Dave Scotese]

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Here are some books that will help more people understand why Adam's
concern is important:
Kicking the Dragon (by Larken Rose)
The State (by Franz Oppenheimer)

Like he said, it isn't much about bitcoin.  Our crypto is just one of the
defenses we've created, and understanding what it defends will help us
maintain its value.

Dave

On Fri, Jul 31, 2015 at 6:16 AM, Adam Back via bitcoin-dev <
> bitcoin-dev@lists.linuxfoundation.org> wrote:
>
> I think trust the data-center logic obviously fails, and I was talking
> about this scenario in the post you are replying to.  You are trusting the
> data-center operator period.  If one could trust data-centers to run
> verified code, to not get hacked, filter traffic, respond to court orders
> without notifying you etc that would be great but that's unfortunately not
> what happens.
>
> Data-center operators are bound to follow laws, including NSLs and gag
> orders.  They also get hacked, employ humans who can be corrupt,
> blackmailed, and themselves centralisation points for policy attack.
> Snowden related disclosures and keeping aware of security show this is very
> real.
>
> This isn't much about bitcoin even, its just security reality for hosting
> anything intended to be secure via decentralisation, or just hosting in
> general while at risk of political or policy attack.
>

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Re: [bitcoin-dev] A compromise between BIP101 and Pieter's proposal

[G. Andrew Stone]

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There's a large array of solutions that are bigger than the cheapest home
broadband, but smaller then renting hardware in a data center.  Every
company with internet service to their location purchases one of these
options.  If Bitcoin full node bandwidth requirements ever exceed a
hobbyist's reach, s/he can always pool resources with other individuals to
purchase one of these solutions, and a 1-room office.

How many of you have connected to multiple ISPs and are routing internet
traffic between them?  But TCP is still permissionless.

Bitcoin node requirements will grow beyond a hobbyist reach (but not that
of the garage entrepreneur).   The truth is that as technologies grow and
mature, the hobbyists move on but anyone who has a real reason to continue
using it stays.  This fact does not destroy its decentralization.

I do not think that reasonable scaling will significantly affect full node
quantity (historical downtrends are conflated with the simultaneous
transition from hobbyist to professional).

At the same time the ability to create an independent full node is a
tremendous force keeping existing full nodes honest -- this potential is
more powerful then the fact.

Which would you choose, a 10 thousand node strong bankCoin, or a 1000 node
open source permissionless Bitcoin?


On Fri, Jul 31, 2015 at 12:22 PM, Dave Scotese via bitcoin-dev <
bitcoin-dev@lists.linuxfoundation.org> wrote:

> Here are some books that will help more people understand why Adam's
> concern is important:
> Kicking the Dragon (by Larken Rose)
> The State (by Franz Oppenheimer)
>
> Like he said, it isn't much about bitcoin.  Our crypto is just one of the
> defenses we've created, and understanding what it defends will help us
> maintain its value.
>
> Dave
>
> On Fri, Jul 31, 2015 at 6:16 AM, Adam Back via bitcoin-dev <
>> bitcoin-dev@lists.linuxfoundation.org> wrote:
>>
>> I think trust the data-center logic obviously fails, and I was talking
>> about this scenario in the post you are replying to.  You are trusting the
>> data-center operator period.  If one could trust data-centers to run
>> verified code, to not get hacked, filter traffic, respond to court orders
>> without notifying you etc that would be great but that's unfortunately not
>> what happens.
>>
>> Data-center operators are bound to follow laws, including NSLs and gag
>> orders.  They also get hacked, employ humans who can be corrupt,
>> blackmailed, and themselves centralisation points for policy attack.
>> Snowden related disclosures and keeping aware of security show this is very
>> real.
>>
>> This isn't much about bitcoin even, its just security reality for hosting
>> anything intended to be secure via decentralisation, or just hosting in
>> general while at risk of political or policy attack.
>>
>
>
> _______________________________________________
> bitcoin-dev mailing list
> bitcoin-dev@lists.linuxfoundation.org
> https://lists.linuxfoundation.org/mailman/listinfo/bitcoin-dev
>
>

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Re: [bitcoin-dev] A compromise between BIP101 and Pieter's proposal

[Ivan Brightly]

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   1. Data centers are not some uniform group of businesses with identical
   policies nor firms with identical laws applied. The ability to get a search
   warrant at a Swedish hosting provider will be dramatically different than a
   Singaporean business. Similar to the decentralized nature of bitcoin, these
   businesses are independent and varied - it would be difficult for
   authorities to conduct a widescale attack on nodes worldwide, especially
   given current laws. It would also be ineffective since any hacked/seized
   host can be replaced quickly with a competitor service in a different
   jurisdiction.
   2. Personal residences and non-data center businesses are not immune to
   theft, blackmail, seizure, hacking, etc. Depending upon the adversary and
   method of attack, many users would be no worse off with their nodes not
   located on premise. As alluded to above, it's a lot easier and less costly
   to spin up a new 3rd party host than it is to replace a stolen laptop.

There is nothing inherently wrong with data centers/hosting providers
playing a significant (but not central) role in decentralized services.
Users who choose to use a VPS are not contributing to bitcoin in some sort
of inferior capacity. I'll posit that 3rd party providers are not an ideal
place to hold private keys, but that is off topic.



On Fri, Jul 31, 2015 at 6:16 AM, Adam Back via bitcoin-dev <
bitcoin-dev@lists.linuxfoundation.org> wrote:

> I think trust the data-center logic obviously fails, and I was talking
> about this scenario in the post you are replying to.  You are trusting the
> data-center operator period.  If one could trust data-centers to run
> verified code, to not get hacked, filter traffic, respond to court orders
> without notifying you etc that would be great but that's unfortunately not
> what happens.
>
> Data-center operators are bound to follow laws, including NSLs and gag
> orders.  They also get hacked, employ humans who can be corrupt,
> blackmailed, and themselves centralisation points for policy attack.
> Snowden related disclosures and keeping aware of security show this is very
> real.
>
> This isn't much about bitcoin even, its just security reality for hosting
> anything intended to be secure via decentralisation, or just hosting in
> general while at risk of political or policy attack.
>
> Adam
> On Jul 31, 2015 10:39, "jl2012 via bitcoin-dev" <
> bitcoin-dev@lists.linuxfoundation.org> wrote:
>
>> There is a summary of the proposals in my previous mail at
>> https://lists.linuxfoundation.org/pipermail/bitcoin-dev/2015-July/009808.html
>>
>> I think there could be a compromise between Gavin's BIP101 and Pieter's
>> proposal (called "BIP103" here). Below I'm trying to play with the
>> parameters, which reasons:
>>
>> 1. Initiation: BIP34 style voting, with support of 750 out of the last
>> 1000 blocks. The "hardfork bit" mechanism might be used:
>> http://lists.linuxfoundation.org/pipermail/bitcoin-dev/2015-July/009576.html
>>
>> Rationale: This follows BIP101, to make sure the new chain is secure.
>> Also, no miner would like to be the first one to mine a large block if they
>> don't know how many others would accept it.
>>
>> 2. Starting date: 30 days after 75% miner support, but not before
>> 2016-01-12 00:00 UTC
>>
>> Rationale: A 30-day grace period is given to make sure everyone has
>> enough time to follow. This is a compromise between 14 day in BIP101 and 1
>> year in BIP103. I tend to agree with BIP101. Even 1 year is given, people
>> will just do it on the 364th day if they opt to procrastinate.
>>
>> 2016-01-12 00:00 UTC is Monday evening in US and Tuesday morning in
>> China. Most pool operators and devs should be back from new year holiday
>> and not sleeping. (If the initiation is delayed, we may require that it
>> must be UTC Tuesday midnight)
>>
>> 3. The block size at 2016-01-12 will be 1,414,213 bytes, and multiplied
>> by 1.414213 by every 2^23 seconds (97 days) until exactly 8MB is reached on
>> 2017-05-11.
>>
>> Rationale: Instead of jumping to 8MB, I suggest to increase it gradually
>> to 8MB in 16 months. 8MB should not be particularly painful to run even
>> with current equipment (you may see my earlier post on bitctointalk:
>> https://bitcointalk.org/index.php?topic=1054482.0). 8MB is also agreed
>> by Chinese miners, who control >60% of the network.
>>
>> 4. After 8MB is reached, the block size will be increased by 6.714% every
>> 97 days, which is equivalent to exactly octuple (8x) every 8.5 years, or
>> double every 2.9 years, or +27.67% per year. Stop growth at 4096MB on
>> 2042-11-17.
>>
>> Rationale: This is a compromise between 17.7% p.a. of BIP103 and 41.4%
>> p.a. of BIP101. This will take us almost 8 years from now just to go back
>> to the original 32MB size (4 years for BIP101 and 22 years for BIP103)
>>
>> SSD price is expected to drop by >50%/year in the coming years. In 2020,
>> we will only need to pay 2% of current price for SSD. 98% price reduction
>> is enough for 40 years of 27.67% growth.
>> Source:
>> http://wikibon.org/wiki/v/Evolution_of_All-Flash_Array_Architectures
>>
>> Global bandwidth is expected to grow by 37%/year until 2021 so 27.67%
>> should be safe at least for the coming 10 years.
>> Source:
>> https://www.telegeography.com/research-services/global-bandwidth-forecast-service/
>>
>> The final cap is a compromise between 8192MB@2036 of BIP101 and
>> 2048MB@2063 of BIP103
>>
>>
>> -----------------------------------
>>
>> Generally speaking, I think we need to have a faster growth in the
>> beginning, just to normalize the block size to a more reasonable one. After
>> all, the 1MB cap was introduced when Bitcoin was practically worthless and
>> with inefficient design. We need to decide a new "optimal" size based on
>> current adoption and technology.
>>
>> About "fee market": I do agree we need a fee market, but the fee pressure
>> must not be too high at this moment when block reward is still miner's main
>> income source. We already have a fee market: miners will avoid building big
>> blocks with low fee because that will increase the orphan risk for nothing.
>>
>> About "secondary layer": I respect everyone building secondary layer over
>> the blockchain. However, while the SWIFT settlement network is processing
>> 300tps, Bitcoin's current 7tps is just nothing more than an experiment. If
>> the underlying settlement system does not have enough capacity, any
>> secondary layer built on it will also fall apart. For example, people may
>> DoS attack a Lightening network by provoking a huge amount of settlement
>> request which some may not be confirmed on time. Ultimately, this will
>> increase the risk of running a LN service and increase the tx fee inside
>> LN. After all, the value of secondary layer primarily comes from instant
>> confirmation, not scarcity of the block space.
>>
>> _______________________________________________
>> 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
>
>

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Re: [bitcoin-dev] A compromise between BIP101 and Pieter's proposal

[Pieter Wuille]

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On Fri, Jul 31, 2015 at 10:39 AM, jl2012 via bitcoin-dev <
bitcoin-dev@lists.linuxfoundation.org> wrote:

> There is a summary of the proposals in my previous mail at
> https://lists.linuxfoundation.org/pipermail/bitcoin-dev/2015-July/009808.html
> 1. Initiation: BIP34 style voting, with support of 750 out of the last
> 1000 blocks. The "hardfork bit" mechanism might be used:
> http://lists.linuxfoundation.org/pipermail/bitcoin-dev/2015-July/009576.html
>

This is fine, I think. I believe we shouldn't proceed with a hardfork
without having reasonable expectation that it will be deployed by everyone
in time, while we can only measure miner acceptance. Still, as a
belt-and-suspenders this won't hurt.


> 2. Starting date: 30 days after 75% miner support, but not before
> 2016-01-12 00:00 UTC
>
> Rationale: A 30-day grace period is given to make sure everyone has enough
> time to follow. This is a compromise between 14 day in BIP101 and 1 year in
> BIP103. I tend to agree with BIP101. Even 1 year is given, people will just
> do it on the 364th day if they opt to procrastinate.
>

Given the time recent softforks have taken to deploy, I think that's too
soon.

2016-01-12 00:00 UTC is Monday evening in US and Tuesday morning in China.
> Most pool operators and devs should be back from new year holiday and not
> sleeping. (If the initiation is delayed, we may require that it must be UTC
> Tuesday midnight).
>

That's an interesting thing to take into account.


> 3. The block size at 2016-01-12 will be 1,414,213 bytes, and multiplied by
> 1.414213 by every 2^23 seconds (97 days) until exactly 8MB is reached on
> 2017-05-11.
>
> Rationale: Instead of jumping to 8MB, I suggest to increase it gradually
> to 8MB in 16 months. 8MB should not be particularly painful to run even
> with current equipment (you may see my earlier post on bitctointalk:
> https://bitcointalk.org/index.php?topic=1054482.0). 8MB is also agreed by
> Chinese miners, who control >60% of the network.
>

I have considered suggesting a faster ramp-up in the beginning, but I don't
think there is indisputable evidence that we can currently deal with
significantly larger blocks. I don't think "painful" is the right criterion
either; I'm sure my equipment can "handle" 20 MB blocks too, but with a
huge impact on network propagation speed, and even more people choosing the
outsource their full nodes.

Regarding "reasonable", I have a theory. What if we would have had 8 MB
blocks from the start? My guess is that some more people would have decided
to run their high-transaction-rate use cases on chain, that we'd regularly
see 4-6 MB blocks, there would be more complaints about low full node
counts, maybe 90% instead of 60% of the hash rate would be have SPV mining
agreements with each other, we'd somehow have accepted that even worse
reality, but people would still be complaining about the measly 25
transactions per second that Bitcoin could handle on-chain, and be
demanding a faster rampup to a more "reasonable" 64 MB block size as well.

>
> 4. After 8MB is reached, the block size will be increased by 6.714% every
> 97 days, which is equivalent to exactly octuple (8x) every 8.5 years, or
> double every 2.9 years, or +27.67% per year. Stop growth at 4096MB on
> 2042-11-17.
>
> Rationale: This is a compromise between 17.7% p.a. of BIP103 and 41.4%
> p.a. of BIP101. This will take us almost 8 years from now just to go back
> to the original 32MB size (4 years for BIP101 and 22 years for BIP103)
>
> SSD price is expected to drop by >50%/year in the coming years. In 2020,
> we will only need to pay 2% of current price for SSD. 98% price reduction
> is enough for 40 years of 27.67% growth.
> Source:
> http://wikibon.org/wiki/v/Evolution_of_All-Flash_Array_Architectures
>

I know many technologies have had faster growth, but I believe that global
bandwidth accessibility is the bottleneck, so the growth rate in my
proposal is based on that.


> Global bandwidth is expected to grow by 37%/year until 2021 so 27.67%
> should be safe at least for the coming 10 years.
> Source:
> https://www.telegeography.com/research-services/global-bandwidth-forecast-service/
>

I'd rather be conservative here. My primary purpose is trying to create an
uncontroversial proposal that introduces an expectation of growth with
technology.

-- 
Pieter

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Re: [bitcoin-dev] A compromise between BIP101 and Pieter's proposal

[Tom Harding]

On 8/1/2015 1:45 PM, Pieter Wuille via bitcoin-dev wrote:
>
> Regarding "reasonable", I have a theory. What if we would have had 8
> MB blocks from the start? My guess is that some more people would have
> decided to run their high-transaction-rate use cases on chain, that
> we'd regularly see 4-6 MB blocks,

You've proposed scaling the cap based on technology growth.  There's
still a cap to stop bad things from happening.

Once that is done, why worry so much about whether the uses are
efficient?  Let people work in the space created.  Let them figure out
how to make good things happen in the application space.

Re: [bitcoin-dev] A compromise between BIP101 and Pieter's proposal

[jl2012]

Pieter Wuille 於 2015-08-01 16:45 寫到:
> On Fri, Jul 31, 2015 at 10:39 AM, jl2012 via bitcoin-dev
> <bitcoin-dev@lists.linuxfoundation.org> wrote:

>> 2. Starting date: 30 days after 75% miner support, but not before
>> 2016-01-12 00:00 UTC
>> 
>> Rationale: A 30-day grace period is given to make sure everyone has
>> enough time to follow. This is a compromise between 14 day in BIP101
>> and 1 year in BIP103. I tend to agree with BIP101. Even 1 year is
>> given, people will just do it on the 364th day if they opt to
>> procrastinate.
> 
> Given the time recent softforks have taken to deploy, I think that's
> too soon.

Since I'm using "30 days after 75% miner support", the actual deployment 
period will be longer than 30 days. Anyway, if all major exchanges and 
merchants agree to upgrade, people are forced to upgrade immediately or 
they will follow a worthless chain.


> 
>> 3. The block size at 2016-01-12 will be 1,414,213 bytes, and
>> multiplied by 1.414213 by every 2^23 seconds (97 days) until exactly
>> 8MB is reached on 2017-05-11.
>> 
>> Rationale: Instead of jumping to 8MB, I suggest to increase it
>> gradually to 8MB in 16 months. 8MB should not be particularly
>> painful to run even with current equipment (you may see my earlier
>> post on bitctointalk:
>> https://bitcointalk.org/index.php?topic=1054482.0 ). 8MB is also
>> agreed by Chinese miners, who control >60% of the network.
> 
> I have considered suggesting a faster ramp-up in the beginning, but I
> don't think there is indisputable evidence that we can currently deal
> with significantly larger blocks. I don't think "painful" is the right
> criterion either; I'm sure my equipment can "handle" 20 MB blocks too,
> but with a huge impact on network propagation speed, and even more
> people choosing the outsource their full nodes.
> 
> Regarding "reasonable", I have a theory. What if we would have had 8
> MB blocks from the start? My guess is that some more people would have
> decided to run their high-transaction-rate use cases on chain, that
> we'd regularly see 4-6 MB blocks, there would be more complaints about
> low full node counts, maybe 90% instead of 60% of the hash rate would
> be have SPV mining agreements with each other, we'd somehow have
> accepted that even worse reality, but people would still be
> complaining about the measly 25 transactions per second that Bitcoin
> could handle on-chain, and be demanding a faster rampup to a more
> "reasonable" 64 MB block size as well.

Since the block reward is miners' major income source, no rational miner 
would create mega blocks unless the fee could cover the extra orphaning 
risk. Blocks were not constantly full until recent months, and many 
miners are still keeping the 750kB soft limit. This strongly suggests 
that we won't have 4MB blocks now even Satoshi set a 8MB limit.

I don't have the data now but I believe the Satoshi Dice model failed 
not primarily due to the 1MB cap, but the raise in BTC/USD rate. Since 
minting reward is a fixed value in BTC, the tx fee must also be valued 
in BTC as it is primarily for compensating the extra orphaning risk. As 
the BTC/USD rate increases, the tx fee measured in USD would also 
increase, making micro-payment (measured in USD) unsustainable.

We might have less full nodes, but it was Satoshi's original plan: "At 
first, most users would run network nodes, but as the network grows 
beyond a certain point, it would be left more and more to specialists 
with server farms of specialized hardware. A server farm would only need 
to have one node on the network and the rest of the LAN connects with 
that one node." Theoretically, we only require one honest full node to 
prove wrongdoing on the blockchain and tell every SPV nodes to blacklist 
the invalid chain.

I think SPV mining exists long before the 1MB block became full, and I 
don't think we could stop this trend by artificially suppressing the 
block size. Miners should just do it properly, e.g. stop mining until 
the grandparent block is verified, which would make sure an invalid fork 
won't grow beyond 2 blocks.



>> Global bandwidth is expected to grow by 37%/year until 2021 so
>> 27.67% should be safe at least for the coming 10 years.
>> Source:
>> 
> https://www.telegeography.com/research-services/global-bandwidth-forecast-service/

> 
> I'd rather be conservative here. My primary purpose is trying to
> create an uncontroversial proposal that introduces an expectation of
> growth with technology.

If we could have a longer initial ramp up period, we may adopt a slower 
long term parameter. I think we should at least restore the original 
32MB limit in a reasonable time frame, say 6-8 years, instead of 20 
years in your proposal. If you believe Bitcoin should become a global 
settlement network, 32MB would be the very minimum as that is only 75% 
of current SWIFT traffic.

Re: [bitcoin-dev] A compromise between BIP101 and Pieter's proposal

[odinn]

-----BEGIN PGP SIGNED MESSAGE-----
Hash: SHA1

I am in favor of a more gradual (longer) period and a softforking
solution... that is, more than 30 days of grace period (some period
between 60 days and a year), ...

... and given the number of valid softforking proposals out there it
seems to me that it would be rather simple to see one or more (e.g.
Cameron Garnham's dynamic block size adjustment (needing soft fork
only)) in a BIP.

It is also worthwhile to add that some of the softforking proposals,
and I believe Garnham's to be one of them, are not incompatible with
proposals such as Jeff Garzik's BIP 100, that is to say, there is
nothing keeping you from doing the Garnham dynamic block size
adjustment (softfork) right now today, examining its progress and
effect, while also preparing for a Garzik (BIP 100) for example.

- - Odinn

On 08/02/2015 12:16 AM, jl2012 via bitcoin-dev wrote:
> Pieter Wuille 於 2015-08-01 16:45 寫到:
>> On Fri, Jul 31, 2015 at 10:39 AM, jl2012 via bitcoin-dev 
>> <bitcoin-dev@lists.linuxfoundation.org> wrote:
> 
>>> 2. Starting date: 30 days after 75% miner support, but not
>>> before 2016-01-12 00:00 UTC
>>> 
>>> Rationale: A 30-day grace period is given to make sure everyone
>>> has enough time to follow. This is a compromise between 14 day
>>> in BIP101 and 1 year in BIP103. I tend to agree with BIP101.
>>> Even 1 year is given, people will just do it on the 364th day
>>> if they opt to procrastinate.
>> 
>> Given the time recent softforks have taken to deploy, I think
>> that's too soon.
> 
> Since I'm using "30 days after 75% miner support", the actual
> deployment period will be longer than 30 days. Anyway, if all major
> exchanges and merchants agree to upgrade, people are forced to
> upgrade immediately or they will follow a worthless chain.
> 
> 
>> 
>>> 3. The block size at 2016-01-12 will be 1,414,213 bytes, and 
>>> multiplied by 1.414213 by every 2^23 seconds (97 days) until
>>> exactly 8MB is reached on 2017-05-11.
>>> 
>>> Rationale: Instead of jumping to 8MB, I suggest to increase it 
>>> gradually to 8MB in 16 months. 8MB should not be particularly 
>>> painful to run even with current equipment (you may see my
>>> earlier post on bitctointalk: 
>>> https://bitcointalk.org/index.php?topic=1054482.0 ). 8MB is
>>> also agreed by Chinese miners, who control >60% of the
>>> network.
>> 
>> I have considered suggesting a faster ramp-up in the beginning,
>> but I don't think there is indisputable evidence that we can
>> currently deal with significantly larger blocks. I don't think
>> "painful" is the right criterion either; I'm sure my equipment
>> can "handle" 20 MB blocks too, but with a huge impact on network
>> propagation speed, and even more people choosing the outsource
>> their full nodes.
>> 
>> Regarding "reasonable", I have a theory. What if we would have
>> had 8 MB blocks from the start? My guess is that some more people
>> would have decided to run their high-transaction-rate use cases
>> on chain, that we'd regularly see 4-6 MB blocks, there would be
>> more complaints about low full node counts, maybe 90% instead of
>> 60% of the hash rate would be have SPV mining agreements with
>> each other, we'd somehow have accepted that even worse reality,
>> but people would still be complaining about the measly 25
>> transactions per second that Bitcoin could handle on-chain, and
>> be demanding a faster rampup to a more "reasonable" 64 MB block
>> size as well.
> 
> Since the block reward is miners' major income source, no rational
> miner would create mega blocks unless the fee could cover the extra
> orphaning risk. Blocks were not constantly full until recent
> months, and many miners are still keeping the 750kB soft limit.
> This strongly suggests that we won't have 4MB blocks now even
> Satoshi set a 8MB limit.
> 
> I don't have the data now but I believe the Satoshi Dice model
> failed not primarily due to the 1MB cap, but the raise in BTC/USD
> rate. Since minting reward is a fixed value in BTC, the tx fee must
> also be valued in BTC as it is primarily for compensating the extra
> orphaning risk. As the BTC/USD rate increases, the tx fee measured
> in USD would also increase, making micro-payment (measured in USD)
> unsustainable.
> 
> We might have less full nodes, but it was Satoshi's original plan:
> "At first, most users would run network nodes, but as the network
> grows beyond a certain point, it would be left more and more to
> specialists with server farms of specialized hardware. A server
> farm would only need to have one node on the network and the rest
> of the LAN connects with that one node." Theoretically, we only
> require one honest full node to prove wrongdoing on the blockchain
> and tell every SPV nodes to blacklist the invalid chain.
> 
> I think SPV mining exists long before the 1MB block became full,
> and I don't think we could stop this trend by artificially
> suppressing the block size. Miners should just do it properly, e.g.
> stop mining until the grandparent block is verified, which would
> make sure an invalid fork won't grow beyond 2 blocks.
> 
> 
> 
>>> Global bandwidth is expected to grow by 37%/year until 2021 so 
>>> 27.67% should be safe at least for the coming 10 years. 
>>> Source:
>>> 
>> https://www.telegeography.com/research-services/global-bandwidth-fore
cast-service/
>>
>
>> 
>> 
>> I'd rather be conservative here. My primary purpose is trying to 
>> create an uncontroversial proposal that introduces an expectation
>> of growth with technology.
> 
> If we could have a longer initial ramp up period, we may adopt a
> slower long term parameter. I think we should at least restore the
> original 32MB limit in a reasonable time frame, say 6-8 years,
> instead of 20 years in your proposal. If you believe Bitcoin should
> become a global settlement network, 32MB would be the very minimum
> as that is only 75% of current SWIFT traffic. 
> _______________________________________________ bitcoin-dev mailing
> list bitcoin-dev@lists.linuxfoundation.org 
> https://lists.linuxfoundation.org/mailman/listinfo/bitcoin-dev

- -- 
http://abis.io ~
"a protocol concept to enable decentralization
and expansion of a giving economy, and a new social good"
https://keybase.io/odinn
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Re: [bitcoin-dev] A compromise between BIP101 and Pieter's proposal

[Pieter Wuille]

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>>> 2. Starting date: 30 days after 75% miner support, but not before
>>> 2016-01-12 00:00 UTC
>>>
>>> Rationale: A 30-day grace period is given to make sure everyone has
>>> enough time to follow. This is a compromise between 14 day in BIP101
>>> and 1 year in BIP103. I tend to agree with BIP101. Even 1 year is
>>> given, people will just do it on the 364th day if they opt to
>>> procrastinate.
>>
>>
>> Given the time recent softforks have taken to deploy, I think that's
>> too soon.
>
>
> Since I'm using "30 days after 75% miner support", the actual deployment
period will be longer than 30 days. Anyway, if all major exchanges and
merchants agree to upgrade, people are forced to upgrade immediately or
they will follow a worthless chain.

If we don't want it to go fast, why let them? A hardfork is a means for the
community to agree on the rules that different parties have to obey.

>>> 3. The block size at 2016-01-12 will be 1,414,213 bytes, and
>>> multiplied by 1.414213 by every 2^23 seconds (97 days) until exactly
>>> 8MB is reached on 2017-05-11.
>>>
>>> Rationale: Instead of jumping to 8MB, I suggest to increase it
>>> gradually to 8MB in 16 months. 8MB should not be particularly
>>> painful to run even with current equipment (you may see my earlier
>>> post on bitctointalk:
>>> https://bitcointalk.org/index.php?topic=1054482.0 ). 8MB is also
>>>
>>> agreed by Chinese miners, who control >60% of the network.
>>
>>
>> I have considered suggesting a faster ramp-up in the beginning, but I
>> don't think there is indisputable evidence that we can currently deal
>> with significantly larger blocks. I don't think "painful" is the right
>> criterion either; I'm sure my equipment can "handle" 20 MB blocks too,
>> but with a huge impact on network propagation speed, and even more
>> people choosing the outsource their full nodes.
>>
>> Regarding "reasonable", I have a theory. What if we would have had 8
>> MB blocks from the start? My guess is that some more people would have
>> decided to run their high-transaction-rate use cases on chain, that
>> we'd regularly see 4-6 MB blocks, there would be more complaints about
>> low full node counts, maybe 90% instead of 60% of the hash rate would
>> be have SPV mining agreements with each other, we'd somehow have
>> accepted that even worse reality, but people would still be
>> complaining about the measly 25 transactions per second that Bitcoin
>> could handle on-chain, and be demanding a faster rampup to a more
>> "reasonable" 64 MB block size as well.
>
>
> Since the block reward is miners' major income source, no rational miner
would create mega blocks unless the fee could cover the extra orphaning
risk. Blocks were not constantly full until recent months, and many miners
are still keeping the 750kB soft limit. This strongly suggests that we
won't have 4MB blocks now even Satoshi set a 8MB limit.

I disagree. I think "demand" is strongly influenced by the knowledge of
space that looks available. If you look at historic block sizes, you see it
follows a series of block functions, not nice organic growth. My theory is
that this is changed defaults in software, new services appearing suddenly,
and people reacting to it. Demand fills the available space.

Also, SPV mining has nearly zero orphaning risk, only brief chance of loss
of fees as income.

> I don't have the data now but I believe the Satoshi Dice model failed not
primarily due to the 1MB cap, but the raise in BTC/USD rate. Since minting
reward is a fixed value in BTC, the tx fee must also be valued in BTC as it
is primarily for compensating the extra orphaning risk. As the BTC/USD rate
increases, the tx fee measured in USD would also increase, making
micro-payment (measured in USD) unsustainable.

I agree, but how does that matter? I don't think high fees and full blocks
should be the goal, but I think it would be a healthier outcome than what
we have now.

> We might have less full nodes, but it was Satoshi's original plan: "At
first, most users would run network nodes, but as the network grows beyond
a certain point, it would be left more and more to specialists with server
farms of specialized hardware. A server farm would only need to have one
node on the network and the rest of the LAN connects with that one node."
Theoretically, we only require one honest full node to prove wrongdoing on
the blockchain and tell every SPV nodes to blacklist the invalid chain.

Theoretically, we also only need one central bank, then? Sorry, if the
outcome is one (or just a few) entities that keep the system in check, I
think it loses any benefit it has over other systems, while still keeping
its costs and disadvantages (confirmation speed, mining infrastructure,
subsidy...).

I know that 8 MB blocks do not immediately mean such a dramatic outcome.
But I do believe that as a community setting the block size based on
observed demand (which you do by saying "8 is a more reasonable size than
2" as argument) is the wrong way. What do you do when your 8 MB starts to
look "full", before your schedule says it can increase?

The block size and its costs - bandwidth, processing, centralization
effects for miners, ... - are the things that should be constrained. Demand
will fill it.

> I think SPV mining exists long before the 1MB block became full, and I
don't think we could stop this trend by artificially suppressing the block
size. Miners should just do it properly, e.g. stop mining until the
grandparent block is verified, which would make sure an invalid fork won't
grow beyond 2 blocks.

That would be a huge reduction in security as a mechanism itself, and even
worse due to needing to trust miners to follow that protocol. Without
proper incentives, miners become a trusted party, and due to needed SPV
mining agreements, potentially a closed group too. That is not an
interesting future.

> If you believe Bitcoin should become a global settlement network, 32MB
would be the very minimum as that is only 75% of current SWIFT traffic.

See my BIP text about advantages of Bitcoin, please. A future where it has
to compete with the existing system - using that system's own strengths -
is not interesting.

-- 
Pieter

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Re: [bitcoin-dev] A compromise between BIP101 and Pieter's proposal

[Venzen Khaosan]

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Hash: SHA1

+1 on every point, sipa

On 08/02/2015 05:32 PM, Pieter Wuille via bitcoin-dev wrote:
>>>> 2. Starting date: 30 days after 75% miner support, but not
>>>> before 2016-01-12 00:00 UTC
>>>> 
>>>> Rationale: A 30-day grace period is given to make sure
>>>> everyone has enough time to follow. This is a compromise
>>>> between 14 day in BIP101 and 1 year in BIP103. I tend to
>>>> agree with BIP101. Even 1 year is given, people will just do
>>>> it on the 364th day if they opt to procrastinate.
>>> 
>>> 
>>> Given the time recent softforks have taken to deploy, I think
>>> that's too soon.
>> 
>> 
>> Since I'm using "30 days after 75% miner support", the actual
> deployment period will be longer than 30 days. Anyway, if all
> major exchanges and merchants agree to upgrade, people are forced
> to upgrade immediately or they will follow a worthless chain.
> 
> If we don't want it to go fast, why let them? A hardfork is a means
> for the community to agree on the rules that different parties have
> to obey.
> 
>>>> 3. The block size at 2016-01-12 will be 1,414,213 bytes, and 
>>>> multiplied by 1.414213 by every 2^23 seconds (97 days) until
>>>> exactly 8MB is reached on 2017-05-11.
>>>> 
>>>> Rationale: Instead of jumping to 8MB, I suggest to increase
>>>> it gradually to 8MB in 16 months. 8MB should not be
>>>> particularly painful to run even with current equipment (you
>>>> may see my earlier post on bitctointalk: 
>>>> https://bitcointalk.org/index.php?topic=1054482.0 ). 8MB is
>>>> also
>>>> 
>>>> agreed by Chinese miners, who control >60% of the network.
>>> 
>>> 
>>> I have considered suggesting a faster ramp-up in the beginning,
>>> but I don't think there is indisputable evidence that we can
>>> currently deal with significantly larger blocks. I don't think
>>> "painful" is the right criterion either; I'm sure my equipment
>>> can "handle" 20 MB blocks too, but with a huge impact on
>>> network propagation speed, and even more people choosing the
>>> outsource their full nodes.
>>> 
>>> Regarding "reasonable", I have a theory. What if we would have
>>> had 8 MB blocks from the start? My guess is that some more
>>> people would have decided to run their high-transaction-rate
>>> use cases on chain, that we'd regularly see 4-6 MB blocks,
>>> there would be more complaints about low full node counts,
>>> maybe 90% instead of 60% of the hash rate would be have SPV
>>> mining agreements with each other, we'd somehow have accepted
>>> that even worse reality, but people would still be complaining
>>> about the measly 25 transactions per second that Bitcoin could
>>> handle on-chain, and be demanding a faster rampup to a more 
>>> "reasonable" 64 MB block size as well.
>> 
>> 
>> Since the block reward is miners' major income source, no
>> rational
> miner would create mega blocks unless the fee could cover the
> extra orphaning risk. Blocks were not constantly full until recent
> months, and many miners are still keeping the 750kB soft limit.
> This strongly suggests that we won't have 4MB blocks now even
> Satoshi set a 8MB limit.
> 
> I disagree. I think "demand" is strongly influenced by the
> knowledge of space that looks available. If you look at historic
> block sizes, you see it follows a series of block functions, not
> nice organic growth. My theory is that this is changed defaults in
> software, new services appearing suddenly, and people reacting to
> it. Demand fills the available space.
> 
> Also, SPV mining has nearly zero orphaning risk, only brief chance
> of loss of fees as income.
> 
>> I don't have the data now but I believe the Satoshi Dice model
>> failed
> not primarily due to the 1MB cap, but the raise in BTC/USD rate.
> Since minting reward is a fixed value in BTC, the tx fee must also
> be valued in BTC as it is primarily for compensating the extra
> orphaning risk. As the BTC/USD rate increases, the tx fee measured
> in USD would also increase, making micro-payment (measured in USD)
> unsustainable.
> 
> I agree, but how does that matter? I don't think high fees and
> full blocks should be the goal, but I think it would be a healthier
> outcome than what we have now.
> 
>> We might have less full nodes, but it was Satoshi's original
>> plan: "At
> first, most users would run network nodes, but as the network
> grows beyond a certain point, it would be left more and more to
> specialists with server farms of specialized hardware. A server
> farm would only need to have one node on the network and the rest
> of the LAN connects with that one node." Theoretically, we only
> require one honest full node to prove wrongdoing on the blockchain
> and tell every SPV nodes to blacklist the invalid chain.
> 
> Theoretically, we also only need one central bank, then? Sorry, if
> the outcome is one (or just a few) entities that keep the system in
> check, I think it loses any benefit it has over other systems,
> while still keeping its costs and disadvantages (confirmation
> speed, mining infrastructure, subsidy...).
> 
> I know that 8 MB blocks do not immediately mean such a dramatic
> outcome. But I do believe that as a community setting the block
> size based on observed demand (which you do by saying "8 is a more
> reasonable size than 2" as argument) is the wrong way. What do you
> do when your 8 MB starts to look "full", before your schedule says
> it can increase?
> 
> The block size and its costs - bandwidth, processing,
> centralization effects for miners, ... - are the things that should
> be constrained. Demand will fill it.
> 
>> I think SPV mining exists long before the 1MB block became full,
>> and I
> don't think we could stop this trend by artificially suppressing
> the block size. Miners should just do it properly, e.g. stop mining
> until the grandparent block is verified, which would make sure an
> invalid fork won't grow beyond 2 blocks.
> 
> That would be a huge reduction in security as a mechanism itself,
> and even worse due to needing to trust miners to follow that
> protocol. Without proper incentives, miners become a trusted party,
> and due to needed SPV mining agreements, potentially a closed group
> too. That is not an interesting future.
> 
>> If you believe Bitcoin should become a global settlement network,
>> 32MB
> would be the very minimum as that is only 75% of current SWIFT
> traffic.
> 
> See my BIP text about advantages of Bitcoin, please. A future where
> it has to compete with the existing system - using that system's
> own strengths - is not interesting.
> 
> -- Pieter
> 
> 
> 
> _______________________________________________ bitcoin-dev mailing
> list bitcoin-dev@lists.linuxfoundation.org 
> https://lists.linuxfoundation.org/mailman/listinfo/bitcoin-dev
> 
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Re: [bitcoin-dev] A compromise between BIP101 and Pieter's proposal

[Dave Scotese]

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It will help to assume that there is at least one group of evil people who
are investing in Bitcon's demise.  Not because there are, but because there
might be.  So let's assume they are making a set of a billion transactions,
or a trillion, and maintaining currently-being-legitimately-used hashing
power.  When block size is large enough to frustrate other miners, this
hash power (or some piece of it) will be experimentally shifted to solving
a block containing an internally consistent subset of the prepared
trasnsactions to fill it - experimentally at first, but on the active
Bitcoin network.  One seemingly random, bloated, useless (except for the
universal timestamp) block will be created and the evil group will measure
the effect on the mining community - client takedowns, market exits, and
whatever else interests them.  Then they lie in wait, perhaps let out one
more to do another experiment, but with the goal of eventually catching us
unawares and doing as much damage to morale as possible.

Good concrete descriptions of the threats against which we want to guard
will be very helpful.  Maybe there are already unit tests for such things
or requests for miners' reactions to them (as opposed to just the
software's behavior).  My description might be a bit too long and perhaps
not a very good example, but do we have a place where such examples can be
constructed?

While we will do our best to guard against such nightmares, it's also
helpful to imagine what we will do if and when one of them ever actually
occurs.  Yes, I'm paranoid; because those who like to control everything
are losing it.

Dave

On Sun, Aug 2, 2015 at 3:38 AM, Venzen Khaosan via bitcoin-dev <
bitcoin-dev@lists.linuxfoundation.org> wrote:

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> +1 on every point, sipa
>

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