Re: [bitcoin-dev] Proposal: Low Energy Bitcoin PoW

[ZmnSCPxj <ZmnSCPxj@protonmail.com>]

Good morning devrandom,

> On Mon, May 17, 2021 at 11:47 PM ZmnSCPxj:
>
> > When considering any new proof-of-foo, it is best to consider all effects until you reach the base physics of the arrow of time, at which point you will realize it is ultimately just another proof-of-work anyway.
>
> Let's not simplify away economic considerations, such as externalities.  The whole debate about the current PoW is about negative externalities related to energy production.
>
> Depending on the details, CAPEX (R&D, real-estate, construction, production) may have less externalities, and if that's the case, we should be interested in adopting a PoW that is intensive in these types of CAPEX.

Then let us also not forget another important externality: possible optimizations of a new PoW algorithm that risk being put into some kind of exclusive patent.

I think with high probability that SHA256d as used by Bitcoin will no longer have an optimization as large in effect as ASICBOOST in the future, simply because there is a huge incentive to find such optimizations and Bitcoin has been using SHA256d for 12 years already, and we have already found ASICBOOST (and while patented, as I understand it the patent owner has promised not to enforce the patent --- my understanding may be wrong).

Any alternative PoW algorithm risks an ASICBOOST-like optimization that is currently unknown, but which will be discovered (and possibly patented by an owner that *will* enforce the patent, thus putting the entire ecosystem at direct conflict with legacy government structures) once there is a good incentive (i.e. use in Bitcoin) for it.

Regards,
ZmnSCPxj