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03:21 < adam3us> stevenroose smaller transactoins from combining signatures using schnorr signature aggregation. basically you can have a 2 of 2 sig that is the size of a 1 sig (the bare sig part) same for n of n.  just using that across your own inputs saves +- 33% and joining across others in the block (a big coinjoin of the block) may get to +- 50% transaction size saving. so very roughly 3MB - 4MB worth of transactoins in a 2MB segwit block once the
03:21 < adam3us>  schnorr signature aggregatoin follow on softfork is done.
03:22 < adam3us> (very rough percentages)
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04:06 < Eliel_> adam3us: I was under the impression that schnorr signature aggregation kind of cancels out the extra space segwit provides. Is there a way around that?
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04:10 < gmaxwell> wha? no.
04:12 < gmaxwell> Eliel_: the reduction is in witness data, so it doesn't have as much impact as if it were non-witness data; but it still has a significant impact.
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04:12 < gmaxwell> (Also, Adam's figures are a bit high-- I think based on my post where I used data from some recent blocks that turned out to be a little better than average for aggregation results for some reason.)
04:15 < Eliel_> gmaxwell: Yes, that's what I mean. It can potentially eliminate almost all witness data per block, which means the extra space from segwit might end up almost completely unused, which would mean the effective limit in terms of bytes is still around a megabyte.
04:16 < Eliel_> although, that megabyte will be able to much more transactions than before.
04:16 < gmaxwell> Eliel_: ah you have a misaprehension about how segwit works.
04:17 < gmaxwell> (I think)
04:17 < Eliel_> you have me interested :)
04:19 < gmaxwell> or perhaps not.  Segwit doesn't create a seperate "extra space", it just replaces the size limit with a weight limit where the witness data costs less weight per byte.  With aggregation the witness data will still contain public keys, which are ~half the size of the signatures.
04:21 < Eliel_> oh ok, so I was at least overestimating the reduction in witness data from signature aggregation
04:22 < gmaxwell> it sounded like you were thinking that there were two seperately limited areas, but nah one limit. A typical content max size segwit block has about 600k of non-witness data. so that gives some impression about how much more room there is for non-witness data that you could get from shrinking the witness data further.
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04:31 < Eliel_> Strange, I'm a bit uncertain if my thinking would fall under that misconception or not. I did, to some degree, consider them separately, but ... the correct interpretation doesn't seem to lead to any major changes in how I think about it.
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04:37 < gmaxwell> yea, that was why I went to perhaps not. It sounded like you were thinking of two groups but the conclusion you reached wasn't really impacted by it-- though I didn't realize that until I'd started typing.
04:40 < Eliel_> maybe it was just that I hadn't done any "hands on" thinking about how segwit works with actual blocks and since they're usually spoken of as separate, it was kind of pushing my thinking that way too, even if my intution about it still somehow worked.
04:43 < stevenroose> adam3us, yeah I know about sig aggregation, I just forgot that witness data was still counting towards the block size limit, just weighted down
04:43 < stevenroose> adam3us, gmaxwell, the weight factor or 0.25 for witness data, is it arbitrary?
04:44 < adam3us> well Eliel_ in one sense maybe you are right. weight formula is base+1/4*witness < 1MB if the witness data becomes 1/2 the size then it's base+1/4*1/2*witness < 1MB effectively
04:44 < stevenroose> adam3us, that's not "cancel out", that just makes the improvement from schnorr less significant. but it's still an improvement
04:45 < adam3us> and if we back of envelope that base=33% and witness 66% and assuming full coin join then it goes from
04:45 < Eliel_> yes, blocks get smaller, but you can still fit more transactions in them.
04:46 < Eliel_> Mostly, I'm wondering if there's much point to segwit's witness discount if it mostly ends up unused as a result of schnorr signatures.
04:47 < adam3us> if you solve that with no aggregation you get 2MB of transactions
04:49 < adam3us> and if you solve with full aggregation you get 2.6MB but sending "worth" of 4.3MB of transactoins
04:50 < Eliel_> anyway, it's probably best to talk about this in unoptimized block equivalent numbers. as in, how much space would a 1MB block with full signature aggregation take, if it was built according to the current rules.
04:50 < gmaxwell> stevenroose: the exact value is somewhat arbritary, there is a tradeoff of worst case attack surface, utxo bloat vs byte bloat. A weight of 1 is _heavily_ weighed towards utxo bloat. There are dimishing improvements in the opposing metric at the extremes. E.g. 20% increases the worst case byte bloat a lot, without helping utxo bloat that much.  Middleground comes from the ratio of the data sizes
04:50 < gmaxwell> for typical transactions. 25% perhaps on the higher end of that tradeoff, but with aggregation it's probably about right on. (It's also, coupled with tx compaction about what the typical compaction gains give).
04:50 < gmaxwell> the idea of using "size" as a measure of capacity is just foolish.
04:50 < gmaxwell> :)
04:51 < adam3us> and with own input aggregation you get maybe 2.4MB of dat but equivalent to 3.6MB
04:51 < adam3us> however these data points are all very back of envelope and based on some stats gmax had that are at a high point.
04:52 < adam3us> so i was calling it 3Mb and 4MB equivalent
04:52 < gmaxwell> and leads to absuridty like someone complaining that segwit makes the sizes less consistent and people authoring transactions need consistency, ... when, in fact, segwit makes the number of transactions (well, #txin+#txout) _more_ consistent and less at the whim of transaction mix.
04:52 < adam3us> but it does suggest we need to get away from talking about blocksize. it reminds of the amd vs intel days when amd was trouncing intel at lower clock rates and advertising CPUs with "cpu ghz equivalent to what it would take to get same perf with intel" the so called PR (performance rating)
04:53 < adam3us> we may need to think about transactions/block or transactions/day in terms of throughput
04:53 < Eliel_> yeah, it's not the best metric, but it's the only one most people have any way to relate to anything currently.
04:53 < adam3us> and also there's lots of wastage in what people are doing. really need "useful
04:54 < adam3us>  tx/day which could maybe go up 25-50% just by people stopping doing some dumb things and optimising a bit.
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04:55 < gmaxwell> well there is tx/day and then there is payments/day or something, e.g. people that make long chains of unconfirmed transactions instead of using send many..  That is N payments in N transactions currently, but could be N payments in 1.1 transaction.
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05:10 < adam3us> stevenroose the weight factor is designed to balance two things, making utxo creation closer in cost to utxo consumption, so that defragging becomes more cost neutral. as is other than somewhat altruistic change selection algos in wallets, it's short term rational to create dust, and split coins even when you have coins to combine of suitable value. defragging costs you money, creating dust is discounted.  the weighting tries to correct
05:10 < adam3us>  that
05:11 < stevenroose> yeah I understand, but the number 4
05:11 < stevenroose> has there been some research or discussion on the number
05:11 < stevenroose> or was 4 just Pieter's magic number that everyone accepted? :)
05:11 < adam3us> stevenroose other thing is adversarial worst case block and effective size.  if weighting was 1/10 worst case would be 10MB, and if weighting was 1/3 usable space would go down because of the formula base+1/3*witness < 1MB
05:12 < adam3us> stevenroose i think gmaxwell has the view that if you graph it it is about the turning point of the graph of break even.
05:12 < stevenroose> hmm
05:12 < adam3us> there were quite strong design constraints around it too though.  1/2 or 1/3 gets disappointing scale increase, and 1/5 or 1/6 starts to get above the 4MB safety limit that people had empirically measured for orphans.
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05:13 < stevenroose> ok, that makes sense
05:14 < adam3us> so it was a fortuitous confluence of design space.  i think people figured well we barely have a choice here so lets not knock ourselves out modelling the optimal param.  also the optimal params are grey... it depends on what pattern of multisigs are used. and that pattern changes over time. and maybe interacts with the better weighting too... people would actively like to use multisig for security but may be holding off due to cost etc.
05:14 < adam3us> eg there's schnorr aggregation which changes it again, and then coinjoin + schnorr aggregation, and mast, and lightning changing typical transactions etc.
05:15 < stevenroose> well, another option would not have been to start using weighing in the block size
05:15 < stevenroose> i.e. have a base size limit and a witness size limit
05:15 < adam3us> there was some next gen discussion about more targetted cost metrics, but it was deemed too complex to do at the same time, watch this presentation by n1ckler
05:15 < stevenroose> f.e. 1MB and 3MB
05:15 < stevenroose> that's a lot more straightforward
05:17 < adam3us> https://scalingbitcoin.org/transcript/hongkong2015/validation-cost-metric
05:18 < adam3us> yeah i was hung up on that too because in principle you can get more space out of it.  however the issue is the knapsack problem. it's a multidimensional optimisation problem for whcih the wallet has no information to drive packing.  (he doesnt know what the average transaction split between witness and base is)
05:18 < adam3us> i couldnt see a way to solve that conveniently, and sipa and gmaxwell looked at it a lot more carefully than i did and i think basically decided it's not usefully possible.
05:19 < stevenroose> adam3us, are you Adam from Blockstream, btw?
05:19 < adam3us> yes.
05:20 < stevenroose> on a totally different note, I sometimes think it's sad that a lot of these protocol discussions happen in the github repo of the satoshi client
05:20 < stevenroose> there should be a place for protocol discussion separate from an implementation
05:21 < stevenroose> currently, when referring to a protocol rule decision, people link to the commit that implements it
05:21 < stevenroose> instead of an RFC-like thing
05:21 < gmaxwell> stevenroose: uh no
05:21 < stevenroose> except for BIPS, but there are far more decisions made
05:21 < gmaxwell> What consensus rules are you talking about that aren't in BIPs made any time in the last couple years?
05:23 < stevenroose> I can't name them specifically, but I've been browsing through the btcd code a lot recently, and they often argument certain things by referring to commits in bitcoin core
05:23 < gmaxwell> thats also because they slavishly copy the design and implementation details from bitcoin core.
05:24 < gmaxwell> that doesn't mean it has anything to do with the consensus.
05:24 < stevenroose> true
05:24 < stevenroose> I didn't really take note on what references were strictly consensus rules
05:25 < gmaxwell> AFAIK, nothing goes into core that is a normative protocol change with impact on consensus without a BIP.
05:25 < stevenroose> hmm
05:25 < stevenroose> ok, didn't know tat
05:25 < stevenroose> that*
05:25 < stevenroose> that's good to hear, though, thanks for pointing that out
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05:26 < stevenroose> I really value the existence of alternative implementations
05:26 < gmaxwell> If you encounter something that got missed at any point, please bring it up.
05:27 < stevenroose> you don't wanna go the path of Ripple where only a handful of people know the code and so no one has the ability to fork against certain decisions :p not that bitcoin is nowhere near that at this point, luckily
05:27 < stevenroose> anywhere*
05:28 < gmaxwell> that isn't a property of multiple implementations, however. It's a property of collaboration, peer review, etc.
05:28 < nsh-> loggy, pointer?
05:28 < nsh-> (oh yeah it displays from now at https://botbot.me/freenode/bitcoin-wizards/ anyway)
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06:23 < gmaxwell> stevenroose: about the witness factor, here is an explination: https://people.xiph.org/~greg/temp/bloat_tradeoff.png  x is the witness factor. The red line shows the ratio of the worst case block size to the block size for a block full of 2 in 3 out transactions,  the green line shows the ratio of utxo bytes for a worst case utxo filling block vs a utxo bytes of a typical block using 2 in 3 out t
06:23 < gmaxwell> xn.  I admit some graft-craft there in choosing 2,3 which happens to put the tying point right at 0.25. :P  1,2 - 2,1 put it anywhere between .2 and .3 --- and the exact crossover is subjective because utxo cost and block storage costs are not equally 'expensive' but depend on user tolerances, hardware arch, etc.   The key point is that the derivitive of the red line is a -1/x^2 like curve, that
06:23 < gmaxwell> has a knee right at .2, so a witness factor smaller that that has an increasingly large bloat effect while only linear capacity and utxo bloat mitigation.
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06:25 < gmaxwell> probably anywhere between .2 and .3 would have been fine, .25 is in the middle.  There are a bunch of parameters in Bitcoin where the exact figure doesn't really matter, but it's more or less in the middle of a sensible range, and setting far outside of that range would work less well or not at all.
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06:26 < gmaxwell> of all the designs that have been discussed that tried to do something about the utxo bad incentives, segwit had the important property of having only a single parameter which had a naturally constrained range of sensible values.
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09:19 < roconnor> Currently the 6 confirmation thing is convention that people are not obligated to follow; it isn't part of the protocol.  The equivalent safety number in the protocol is 100.
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09:32 < adam3us> this was carried over from http://bitcoincore.slackarchive.io/debate/-/1483689842.00491/1483723333.005237/
09:33 < adam3us> which was about the problems on reorg of backwards compatible payouts from an extension block from xtx to regular tx, as collated into a anyonecanspend non-standard but valid after mined one special utxo tx per block by miners.
09:34 < adam3us> a challenge being if someone spends from that output and then the special utxo output txid changes, the transaction needs to be redone with the new txid.
09:34 < adam3us> (which will happen on reorg)
09:37 < kanzure> (channeling luke-jr for a second) backwards-compatibility of an extension block upgrade would require the extension block to obey existing bandwidth limitations
09:38 < kanzure> anyway, reorgs changing the transaction set of recent blocks is a problem for many things not just extension blocks...
09:39 < adam3us> it is arguably similar to oiRBF jl2012 "1. I submit a tx; 2. it gets mined but I don't know; 3. I submit a RBF; 4. re-org happened and the RBF got mined"
09:40 < adam3us> well other than coinbase outputs (which have 100 block maturity protection) i think other transactions tend to remain valid once valid, modulo reorgs, double-spends across reorgs and oiRBF across reorgs
09:40 < kanzure> [i thought it was agreed that your behavior for peg in/peg out needs to have a long wait period for confirmations
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09:41 < adam3us> this is an extension block though, it is being enforced by regular miners, not some merge mine loosely coupled thing without full validation.
09:42 < kanzure> it's still basically a peg though, right? to get coins out of the extension lock, you use the anyonecanspend mechanisms, but otherwise the transactions "live" in the extension block.
09:42 < kanzure> *extension block
09:42 < luke-jr> adam3us: it must also be enforced by every full node
09:43 < kanzure> do i get points for correctly predicting luke-jr's message?
09:44 < luke-jr> kanzure: incorrectly*?
09:44 < jl2012> that's true for every softfork even a simple one like BIP34
09:44 < kanzure> luke-jr: your objection to extension blocks has been that every full node needs to get the extra data (hence you can't actually add to the bandwidth requirements without breaking hte network anyway)
09:45 < kanzure> adam3us: perhaps it would be helpful to specify what sort of data structure you're thinking about for an extension block. unlike segwit it's not just a set of witnesses, it's entire tx right?
09:45 < luke-jr> every case an extension block makes sense, so does a hardfork.
09:45 < jl2012> wait.....that'd be a problem for segwit too...
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09:46 < adam3us> kanzure they're not really suspended as such, they are just controlled by miners on an anyone can spend for backwards compatible payout and payin.
09:47 < adam3us> kanzure a commitment to another instance of a bitcoin block.  like segwit but with xtx's in it.
09:48 < jl2012> luke-jr: if 1. you don't want to require lite nodes to upgrade; 2. you don't want to require all full nodes to upgrade; and 3. you want a bigger block, then the _only_ option is ext-block
09:49 < kanzure> jl2012: it erodes the security properties if full nodes can't follow along anyway due to all the extra size.   the full nodes must see everything.
09:49 < luke-jr> jl2012: all full nodes must upgrade for an ext-block
09:49 < luke-jr> also for any softfork
09:49 < kanzure> no reason to have a commitment to something you're incapable of tracking
09:50 < adam3us> its arguably a little more opt-in than a soft-hardfork at the same overall size.
09:50 < jl2012> luke-jr: then why bother doing softforks?
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09:50 < luke-jr> jl2012: so the former-full nodes aren't left vulnerable.
09:50 < adam3us> (or a simple HF which has a variety of risks)
09:51 < jl2012> kanzure: how about witness commitment.....
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09:51 < kanzure> jl2012: yes, segwit is in fact a capacity increase :)
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09:51 < jl2012> luke-jr: ok I change my statement:  if 1. you don't want to require lite nodes to upgrade; 2. you don't want to leave former full nodes vulnerable; and 3. you want a bigger block, then the _only_ option is ext-block
09:52 < adam3us> i think if you posit the same overall size combined block via simple-HF, soft-HF, or ext-block the scale cost arguments are almost the same.  I think soft-HF is maybe most coercive. then simple HF then ext-block.  and ext-block might be the safest from upgrade perspective and the least painful in terms of not forcing upgrades.
09:52 < luke-jr> #1 is never a goal IMO
09:52 < adam3us> a soft-HF isnt actually very soft.
09:52 < jl2012> 1. you don't want to leave former lite nodes vulnerable
09:53 < jl2012> you may going to say.... lite nodes are always vulnerable? :P
09:53 < luke-jr> jl2012: then you do a SHF
09:53 < kanzure> if you are a low capacity full node (bandwidth limited), upgrading to a soft-fork that tells you about an extension block commitment isn't very helpful if you can't actually follow the extension block (in terms of capacity)
09:55 < adam3us> luke-jr xblock maybe offers an easier opt-out mechanism than soft-HF.  in a soft-HF you have to bootstrap a new chain. in an xblock you just decline to accept xtx's or accept them only after an extended period (1000 blocks)
09:55 < luke-jr> adam3us: no, that isn't opt-out
09:55 < adam3us> its less not opt-out than SHF
09:56 < luke-jr> yes it is
09:56 < luke-jr> you might not even be aware it's happening
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09:56 < jl2012> luke-jr: ok, you win
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09:58 < adam3us> if the size is the same i think views have shifted over time quite a bit. due to ETH HF disasters, and evil-fork somehow becoming more acceptable. and segwit is a kind of ext-block itself ...
09:58 < kanzure> high-capacity extension block is, from the point of view of bandwidth-limited full nodes, basically a transition to "yo trust the miners" security model
09:59 < adam3us> on the miner side for example i think an xblock is slightly better than a SHF or HF because you could solo mine the main block and pool mine the extblock proposal.
09:59 < kanzure> (and if you are OK with that security model then there's a lot of stuff other than gigantic extension blocks that you could do)
10:00 < adam3us> similar for fullnodes you could receive all of the main block and have fraud proofs for the ext block, or sharded verification
10:00 < luke-jr> adam3us: except fraud proofs aren't possible
10:00 < jl2012> kanzure: I think eventually we will migrate to a probabilistic validation. Even your smartphone could validate 0.01% of the blockchain
10:00 < adam3us> this would be true i think of most things. even sidechains.  a GB ext block, SHF, sidechain .. it's all a failure mode
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10:01 < kanzure> (also: small miners are bandwidth limited and will have trouble with infinitely large extension blocks)
10:01 < jl2012> why fraud proofs aren't possible?
10:01 < kanzure> adam3us: to be fair, most sidechains have been said to be a different security model anyway, sooo that's correct and expected
10:01 < jl2012> kanzure: no one is talking about infinitely large block here
10:01 < kanzure> i am being facetious about infinitely, sorry :)
10:01 < adam3us> jl2012 he explained it to me once.  he has a point there is an assumption that a mined block reveals the transactions.  but it doesnt have to be so, they could not reveal all, and some merkle paths may not even exist.
10:02 < luke-jr> jl2012: because they assume blocks are well-formed
10:02 < adam3us> (it assumes miners are well behaved enough not to do that and orphan such blocks)
10:03 < adam3us> but lets talk about the incremental case. eg imagine we do weak blocks, compact blocks is working well, bandwidth si good, miners decentralise quite a bit, and people consider decide  6MB blocks. now how do we do it.
10:03 < adam3us> argument is ext-block is maybe the best method to do so.
10:03 < kanzure> adam3us: i have proposed a structure for blocks where there's a single merkle root (32 bytes) and then a list of pubkeys and an aggregated signature.  miners can put anything into the merkle tree.   miners give inclusion proofs to the spenders before the block is completed. spenders sign in aggregate over the merkle root value to signal that they received their inclusion proofs.   in this sc...
10:03 < kanzure> ...heme, the block contents are only the merkle root and the list of pubkeys.  taek calculated this is about 4x scalability over current situation i think?
10:03 < luke-jr> btw, segwit actually breaks one more case of fraud-proofs that is possible right now
10:04 < luke-jr> right now, you can prove the block size limit is violated with 32 bytes per transaction in the block, but you can't do the same for block weight
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10:05 < jl2012> why only 32 bytes?
10:05 < kanzure> some hash, the point is it's a constant size number of bytes
10:06 < kanzure> i described the scheme here //gnusha.org/bitcoin-wizards/2016-12-11.log
10:06 < kanzure> blah... i mean http://gnusha.org/bitcoin-wizards/2016-12-11.log
10:06 < jl2012> kanzure: sorry, I'm asking luke-jr :P
10:07 < jl2012> why only 32-bytes/tx needed to proof oversize?
10:08 < luke-jr> jl2012: SHA256 hashes include the size of the data in the final 64 bits
10:10 < jl2012> i don't get it. It's some hash magic?
10:12 < luke-jr> jl2012: step 1 of SHA256 is to append the data with padding, the final 64-bits of which is the size of the data
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10:12 < luke-jr> might actually be 64 bytes, not 32
10:12 < luke-jr> midstate + final block
10:13 < luke-jr> jl2012: basically every SHA256 hash commits to the size
10:13 < jl2012> oh, I don't know that
10:14 < adam3us> so how could one fix this xtx-tx reorg problem within soft-fork to make a reasonable experience for non-upgraded clients?
10:14 < jl2012> but in that case, you could still do it because witness size = full size - base size. Just the proof size is doubled
10:17 < jl2012> luke-jr: anyway, the most broken thing right now is unable to proof spending of non-existing UTXO. That requires all txids in the history to proof
10:23 < kanzure> adam3us: wait long confirmations?
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10:27 < kanzure> *wait for long confirmation periods
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10:41 < adam3us> yeah that's a bad experience however
10:42 < luke-jr> jl2012: hmm, I suppose
10:45 < jl2012> luke-jr: but your point is, if a miner decides to withhold part of a block, and other miners are happy to build on top of the incomplete block, there is no way to proof?
10:45 < luke-jr> more or less
10:46 < jl2012> isn't this already true today?
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11:04 < kanzure> jl2012: yes.  this is why it's important that the total amount of data be small enough for lots of full nodes to validate all the data.
11:05 < kanzure> with large data, the excuse is going to be "transfer problems"
11:06 < adam3us> but that's SPY mining. should not build on a block without having the transactions in it.
11:07 < jl2012> segwit enables a whole new level of SPV mining.....
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23:48 -!- CrazyLoaf [uid67551@gateway/web/irccloud.com/x-rlguozrwfbrkmzha] has quit [Quit: Connection closed for inactivity]
23:57 -!- priidu [~priidu@unaffiliated/priidu] has quit [Remote host closed the connection]
--- Log closed Sat Jan 07 00:00:58 2017