2015-12-30.log

--- Log opened Wed Dec 30 00:00:51 2015
bramcInteresting point in the weak blocks presentation: maybe you should accept weaker weak blocks when only a fraction of all mining power is using them. Maybe a good convention would be for peers to accept all weak blocks within some fraction of the strongest weak block they've seen in recent history00:06
bramcMaybe it would be good to be a bit more sophisticated than that in case some joker decides to make lots of weak blocks but throw out his 'good' weak blocks00:07
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bramcAlso to make it less noisy00:09
tulipbramc: not really, that hardware and configuration performed a block withholding attack against p2pool.00:20
bramcHere's a formula: For each block, take the weakest weak block accepted, multiply by the number of weak blocks accepted for that block, and divide by 20. That's a reasonable threshold.00:20
bramcTo prevent DoS set a maximum number of weak blocks you'll accept per block, say 10000:23
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bramcalthough the number of weak blocks per strong block is extremely noisy due to strong block arrival being so noisy. Harumph.00:24
bramcAnother post on weak blocks suggests their strength as 5%. Apparently the going rate is that there should be 20 weak blocks for every strong block.00:28
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bramcAnother post on weak blocks suggests they should have a size limit. I don't like that idea at all.00:39
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bramcAlso I need to think through the important distinction between implicit links between weak blocks and weak references to sets of transactions, sets of transactions meant as deltas, and previous weak blocks00:43
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bramcPeter Todd suggests that weak references to upcoming transactions could be used to determine fees for getting things in quickly, which isn't an awful idea.01:01
bramcalthough I think it's only applicable in the narrow case where you really really want your transaction to go into the next block01:02
bramcA thought on selfish mining: it's particularly applicable when a miner happens to know that they've got more hash power coming online soon, so they can prime the pump for themselves01:04
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bramcOkay, I'm done plowing through all the references about weak blocks. Good night everybody.01:28
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CubicEarthThat's why I think we need some general04:06
CubicEarthconsensus rules which is not written in code, but as a social contract.04:06
CubicEarthjl2012: You are absolutly correct on this point04:06
CubicEarthThat's was jl2012's quote04:07
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jl2012CubicEarth, for example, a black list system is a softfork technically, but is a hardfork as social contract04:54
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CubicEarthjl2012: Yes.  And presumably there are ideals & goals that the contract could lay out, even if they would be imperfect in any real-world implementation04:56
CubicEarthI raised this idea myself a few weeks ago on this channel, and there was serious opposition to the idea.  I still think it is needed though.04:58
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kanzure00:39 < bramc> Another post on weak blocks suggests they should have a size limit. I don't like that idea at all.06:06
kanzuresize limit is necessary because weak blocks can only provide a constant factor improvement compared to strong blocks ....06:06
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kanzurere: bip102 as a soft-fork, i have posted some links about this class of soft-fork proposals over here https://bitcointalk.org/index.php?topic=1296628.msg13400092#msg1340009207:04
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amilleris it possible to soft fork to increase the 21m coin cap? what would that even mean?07:22
amillerthe obvious answer is "of course not"... but generalized soft-forks seem pretty broad so i'm not actually sure where the boundary is07:26
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kanzuredo you consider double-spends to increase the cap? :-)07:31
amillermaybe!07:33
maakuamiller: absolutely yes07:33
maakuthe 'generalized soft-fork' (aka evil fork) lets you arbitrarily change the consensus rules07:34
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kanzurewe should publicly document the soft-hard fork idea07:37
kanzurewhich was iirc the super-evil variant of the evil soft-fork idea07:38
amilleri'm not clear at all on the boundaries of the ideas referred to by these names07:38
amilleris an "evil fork" specifically when miners convince everyone to start using anyonecanspend because they commit to a nice new policy, but then they actually just take all the coins?07:39
kanzure22:30 < gmaxwell> which is this idea we were calling evil forks at the time, and were intentionally not proposing (though they've since been independantly invented twice so I don't see any point in being quiet about them now)07:41
kanzure22:30 < gmaxwell> which is that you can basically build a soft fork which makes a hardfork extension via an extension block but denies all other transactions.07:42
kanzure22:31 < gmaxwell> which sort of highlights why at least at the limits softforks are bad too.07:42
kanzurefrom http://gnusha.org/bitcoin-wizards/2015-06-12.log07:42
amillerhm07:42
amiller;seen gmaxwell07:42
amillerok so i guess the "evil" part is that it supresses all other transactions07:42
amilleri dunno, it seems like double-counting in a way07:43
kanzurei think it's ;;seen07:43
amillerif soft-fork is defined by what old, un-upgraded nodes expect,07:43
amillerthen suppressing transactions from old nodes should count as 'hard'07:43
amiller;;seen07:43
gribble(seen [<channel>] <nick>) -- Returns the last time <nick> was seen and what <nick> was last seen saying. <channel> is only necessary if the message isn't sent on the channel itself. <nick> may contain * as a wildcard.07:43
amiller;;seen gmaxwell07:43
gribblegmaxwell was last seen in #bitcoin-wizards 2 weeks, 2 days, 7 hours, 58 minutes, and 33 seconds ago: <gmaxwell> yea, and 10 layers is a lot, if you're assuming 16 layers of "common data"07:43
amillerlikewise you can argue it's impossible to soft-fork to more than 21M because there's no way to convince old un-upgraded nodes to see more than 21M coins07:44
kanzureevil fork requires an extension block commitment, the evil part is that the soft-fork provides a consensus rule that the only transactions in the new block version blocks are extension block commitments and transfers into the extension block07:45
amillermaybe a better definition of soft-fork is about what kinds of service are guaranteed to legacy nodes07:46
amillerfor example, receiving finalized payments is a service (and that seems to be what most people have in mind when saying soft-fork)07:46
kanzurere: hard-fork vs soft-fork overview there is https://github.com/bitcoin/bips/blob/master/bip-0099.mediawiki07:47
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amillerincreasing max block size would cause old nodes to be on a diverged chain where they're easily double-spent so that's why it's a soft-fork07:48
amillerbut as another example, some kinds of apparently-softfork policies break some kinds of legacy service, such as having pre-signed transactions07:49
kanzurehmm actually i am not sure about the details of soft-hard forks07:49
amillerlike where you make a "cold-wallet recovery" transaction with a reasonable fee and throw away the key07:49
amillera change that requires higher fees, or stops eventually prioritizing old txouts, sort of spoils that reasonably expected service07:50
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kanzurealso x-posted those hyperlinks about extension block stuff to https://www.reddit.com/r/Bitcoin/comments/3yrsxt/bitcoindev_an_implementation_of_bip102_as_a/cyg7mdr07:58
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kanzureinstagibbs: i agree that we have been slacking on assembling a hard-fork wishlist08:32
instagibbsOpen question to all: What are the things we should get around to including to Bitcoin if/when we hardfork? This can include cleanups of Segwit, for example, no-brainers, as well as possibly controversial or unfinished ideas.08:33
instagibbsBonus points for what the challenges to doing it are, if any.08:34
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kanzurehttps://en.bitcoin.it/wiki/Hardfork_Wishlist08:35
kanzurehttps://en.bitcoin.it/wiki/Softfork_wishlist08:35
* Taek suffocates under the high-signal scrollback08:38
Taek<vladzamfir> paul, do you agree that we have a bigger design space, in security-deposit-based PoS than you do in PoW?08:38
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TaekI would argue that a bigger design space is not a good thing, at least, not when it's a less-well-understood design space08:39
Taekmeans there's more surface area for you to miss something that attackers can take advantage of later08:39
Taekas we're seeing with Bitcoin, even the simple idea behind Bitcoin has a lot of hidden nooks and cranines08:39
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Taek.tell bramc I was (independently, believe it or not) working on a closed form solution to selfish mining all day yesterday. I am quite close, have code and everything to produce results08:40
yoleauxTaek: I'll pass your message to bramc.08:40
Taekpetertodd: my calculations are actually even more pessimistic than 29% - you missed some optimizations where miners who find 2 blocks before the network finds any can pusure longer private-chains that result in even more orphans for the network, at no risk08:41
Taek.tell bramc I've also got a proposal to make selfish mining significantly harder. Hoping to have something done in a few days. Would be interested in collaborating on a paper if you've got time08:42
yoleauxTaek: I'll pass your message to bramc.08:42
trompinstagibbs: undo relegation of what should be header fields (like extranonce) into coinbase08:46
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kanzurepetertodd: sounds like you are going to be sending an email about a variant of forced soft-forks. is that going to happen soon? i'm trying to decide when to send an email with a handful of links collecting related topics.08:54
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coinoperatedkanzure, you should start a list of all these links somewhere. perhaps categorized by topic hierarchy. you could give it a catchy name to make it hip with all the kids, something like "woo hoo"09:12
kanzurecoinoperated: i use https://github.com/davidlazar/jotmuch09:12
kanzurecoinoperated: http://diyhpl.us/~bryan/irc/bitcoin/recent-bitcoin-bookmarks-2015-08-30-125827.yaml09:12
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coinoperatedkanzure, very useful if a bit lacking in purple fonts and superfluous emphatic punctuation09:14
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bsm117532coinoperated: See also https://8333.info/ and https://github.com/DavidVorick/knosys09:25
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JackHWOW, MIT just wiped the floor with their whitepaper09:28
JackHamazing work09:28
bsm117532JackH: link?09:28
kanzureturn down the hype, geeze09:28
kanzurethat multiparty computation was previously posted in here, btw09:28
JackHhehe09:29
JackHwould be utterly shocked if it had not09:29
bsm117532enigma?09:29
JackHhere bsm117532 http://enigma.mit.edu/enigma_full.pdf09:29
JackHyes09:29
bsm117532I know ;-) https://www.youtube.com/watch?v=Z4K_Rn8QWGo09:31
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bsm117532BTW if anyone is interested, we're looking for people to host future Whitepaper Wednesday journal-club events.  I'd really like to have one about ECC encryption, curves, and signatures.  I was just reading about Ed225519.  Message me privately if you'd like to lead a discussion in NYC, we will host.09:34
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amillerTaek, yoleaux, bramc, selfish mining is not even the optimal attack09:42
amilleryou should make sure that whatever defense you make for selfish mining doesn't open up other attacks09:42
amillerlook at http://arxiv.org/abs/1507.06183 and https://eprint.iacr.org/2015/79609:42
kanzurebram has seen your first link, dunno about the second09:44
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coinoperatedbsm117532, thx. 8333.info useful on phone09:52
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JackHis enigma on github yet10:15
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bsm117532JackH: Not as far as I know, they haven't released code.10:34
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instagibbsamiller, your title is catchier, so i remembered it :)10:37
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Taekamiller: I chose to ignore combinations of attacks. There are a significant handful of things you could combine to produce some pretty nasty results.11:06
Taekamiller: the solution is to tag 'late' blocks and require that they get more confirmations before switching to mining on them. I don't think there's any clear way to abuse it, because it requires having a block that is late in the first place11:07
TaekUnder my proposal, a block would be considered 'late' if it appears >120 seconds after another block with the same parent11:07
TaekI'm not done with the solution,  but it appears to bump the required hashrate for selfish mining from ~28% to ~42%, which imho is very significant11:08
bsm117532Sounds like it opens an attack which is Sybil + delayed relaying.11:08
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Taekbsm117532: it's expensive to reveal a late block. If you are announcing a block late, it means that it's already got a substantially reduced chance of winning a race, because by necessity there's already another block that's had at least 120 seconds to propagate11:10
Taek*by definition11:10
bsm117532I'm saying the attacker's nodes delay the relay.  The miner announces promptly.11:10
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TaekI believe that's similar to the eclispse attack, and is not exacerbated by miners tagging 'late' blocks. An attacker who is performing succesful delayed relaying is going to have more powerful attacks available than those enabled by late blocks11:12
TaekI will try to have a more formal explanation ready today or tomorrow, but I do believe that all types of attacks which might leverage late blocks already have more powerful options available to them11:12
bsm117532Yes you'd have to achieve an eclipse attack essentially, so that your delayed relay is presented first to a victim's node.11:13
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Taekright, and by the time you've achieved an eclipse attack the range of options available to you are much more diabolical than anything you can leverage out of the late block specifically  - I do need to read the rest of the stubborn mining paper though11:27
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psztorcHello everyone, what remains to be done for the 'canonical assembly of blocks', so as to make best use of the IBLT propagation idea?11:35
psztorcI know that Kristov Atlas did part of this -the inputs and output ordering- for a privacy reason.11:35
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psztorcI thought that that was within each transaction, though. Not across all transactions in a block.11:38
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kanzurepsztorc: i'm confused what you are asking about. which IBLT things have you seen lately? then maybe i can fill in some gaps if any.11:40
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gavinandresenpsztorc: you mean canonical ordering of transactions?  As far as I know, nobody is working on that. Easiest (but not fastest) implementation would be a sorting pass at the end of CreateNewBlock()11:43
psztorcgavinandresen: yes that's what I meant11:43
psztorcThat is the last piece, after which IBLT will work better, it seems?11:43
bsm117532Maybe better to keep the mempool sorted?11:44
kanzurebramc was doing some canonical ordering regarding utxo merkle set stuff11:44
kanzuremempool sorting was recently recommended to be in a fee per byte ordering, i think this was mentioned on the mailing list(?)11:44
psztorcI was thinking precisely that.11:44
kanzurehttp://gnusha.org/bitcoin-wizards/2015-12-22.log11:45
kanzuresearch for fee-for-byte in that log file11:45
psztorcIt would allow SPV clients to learn about the fees accepted by miners, specifically the marginally-acceptable fee (min fee/kb).11:45
psztorcWell, that's why I asked, because it seems that the sort would be arbitrary. But this would actually allow it to be useful.11:45
instagibbsim not seeing how an SPV client would know feerate unless it had access to previous transactions. possibly overthinking11:47
psztorcBecause you can just see how many times you've gone 'left' (or whatever) in the merkle tree. If you go all the way left you get the coinbase, which reveals total fees. You have total tx quantity from the header.11:48
psztorcWhile you're already all left, you might as well pick up the 'most barely acceptable transaction'.11:49
psztorcYou now know the average fee, and the least-acceptable fee, for a given block.11:49
gavinandresenI asked Mike if sorting by fee would be useful to SPV clients, he was skeptical.  Too complicated ... your high-fee transaction might happen to get sorted to the right of the merkle tree because it depends on transactions earlier in the block11:49
psztorcThen you can query other things.11:49
dgenr8mempool is now sorted multiple ways, and more indexes could easily be added11:49
instagibbspsztorc, true the spv client could just ask for that min transaction11:51
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psztorcgavinandresen: It seems strange that the order would matter for something that happens at the same time, does that really matter?11:51
instagibbspsztorc, that's how it's coded now11:51
psztorcYes, the difference is that the SPV client can *know* that it got the min transaction.11:51
instagibbsyou linearly scan transactions for validity11:52
psztorcI see, thanks.11:52
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psztorcStill, I think it is worth it, because it would be hard to game this system when SPV clients can just start sampling randomly in the left half of the tree to learn about the distribution of fees there.11:55
instagibbsrandom sampling certainly makes more sense11:55
psztorcPretty safe way to automate fee-minimization, I think.11:55
instagibbsyou can take that number as a seed then do whatever else you want. Lowball to see if miners would include anyways and to discourage lying, etc.11:56
psztorcI mean, just by going left to the coinbase, you have the average, and the min, which are the two most ideal fee-parameters.11:57
kanzurehttp://diyhpl.us/wiki/transcripts/scalingbitcoin/transaction-fee-estimation/11:57
kanzurehttp://lists.linuxfoundation.org/pipermail/bitcoin-dev/2015-November/011685.html11:57
kanzurehttps://medium.com/@bramcohen/how-wallets-can-handle-transaction-fees-ff5d020d14fb11:57
psztorcI saw bram's thing, I thought it was good. But did he discuss 'how users become aware of fees'? I thought not.11:58
instagibbspsztorc, like gavinandresen said, miners may game this or include really low stuff to pay for higher stuff11:59
instagibbshence random sampling11:59
gavinandresen... better/simpler to commit to fees as part of the segwitness data.12:00
psztorcWell I would want them to random sample something that was sorted, so they'd always be 'lower than average' but 'was accepted by a block'.12:00
psztorcBoth of those true.12:00
psztorcThis would safely glide fees down.12:00
psztorcOtherwise it is just 'average fee' (which you can already get with division).12:01
psztorc - some random number.12:01
psztorcFee(block) = average_fee - alpha12:01
psztorcwhich I don't like.12:01
psztorc(By 'random number' I meant a disparaging 'arbitrary static parameter').12:02
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psztorcI suppose, with pure random sampling, you can do something similar, by simply sampling and then taking the 25% percentile. This takes much more samples but I guess it doesn't really matter.12:06
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instagibbsI'd want to plot a feerate curve anyways, heh12:08
psztorcI won't deny that this is partially out of a arbitrary and emotional desire to see The Supply Curve in the blocks themselves.12:09
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psztorc[14:59] <instagibbs> psztorc, like gavinandresen said, miners may game this or include really low stuff to pay for higher stuff12:12
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psztorcAre you talking about the way it is done now?12:12
psztorcBecause the way it is done now, the miner can stuff the block with a high n of high fee transactions to make it look like fees are high.12:14
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psztorcThis would trick people who don't sample enough, whereas sampling from the lower half of fee-per-kb sort would always work, even with only 3 or 4 samples.12:14
psztorcIn fact, if miners include >50% of transactions as high fee to themselves, this produces different effects in each sort: the traditional way, each sample is likely to be high fee, but in the supply curve lower half way, each sample is likely to be not-from-a-miner.12:16
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instagibbsWe are on the same page.12:18
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psztorcOk, how's this idea: they are all sorted by fee-per-kb, but if anyone double-transacts within a block, these go directly to the right of their parent.12:32
psztorcOptionally, force any such children to have the exact same fee/kb as their parents, but I don't think that's required.12:32
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psztorcThe result is all of the benefits of both, the supply curve is just distorted by these, but if you sample from the lower half, it can only be gamed to make it look as though transactions are much lower.12:33
psztorcWhich is not what miners would want.12:33
psztorcOh wait, I don't think that's right...12:34
psztorcJust put in on high-fee transaction and then a long sequence of low-fees, to crowd the right side.12:35
psztorcOops.12:35
psztorcI'll think about it some more I guess.12:35
dgenr8psztorc: an index that includes only child fee, but all parent sizes, in the calc is suitably punishing to dependencies12:35
psztorcAh yes, it interacts with child-pays-for-parent, very logical.12:36
psztorcBut the spv client probably can't tell which transactions are part of (?) single-block families (or whatever).12:37
psztorcSo I would get my supply curve but not really be able to use it for anything.12:39
psztorcUnless there were extra stuff to flag tx-families.12:39
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dgenr8i'm actually working on that. not sure when it might get into a release of some codebsae or other12:40
psztorcCool.12:43
psztorcWell that should be good enough, right, each user can get a "lower-than-average, but acceptable" value, then you just slowly increase this "bid" until a miner includes it.12:46
dgenr8let's go to #bitcoin-dev12:49
dgenr8psztorc: i'm not totally sure what you're doing.  looking for historical fee data (per block?) or currently-being assembled estimates12:50
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TaekI think gmaxwell has discussed similar things in the past, but it would be cool to have an OP_REQUIRE which mandated that a certain transaction or set of transactions appeared in the blockchain in order for your txn to be valid. If preconsensus becomes strong enough, you could commit to clusters of transactions with a single hash, and then if each of those  txns contained their own OP_REQUIRE codes, you'd end up with an entire chain of valid13:47
Taektransacions which work together to fight censorship13:47
TaekI was thinking about this because I've become more aware of the fact that miners are untrusted entities13:48
Taeknobody chooses them, and nobody controls their behavior, except by incentives which they may have regulatory reason to ignore13:48
TaekI though an OP_REQUIRE might make a dent in their power by having everything depend on everything else in a way that makes it very difficult for miners to ignore indivual transactions - in doing so you end up needing to ignore entire clusters13:49
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instagibbsso basically the relationship is quite like using utxos, but not consuming them? Trying to reason about pitfalls.13:51
Taekyeah. You end up with parent transactions that are really only spiritual13:52
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instagibbslike a spirit animal, nice13:58
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bramcI saw Taek sent messages for me via gribble in the log but gribble didn't send them14:02
yoleaux16:40Z <Taek> bramc: I was (independently, believe it or not) working on a closed form solution to selfish mining all day yesterday. I am quite close, have code and everything to produce results14:02
yoleaux16:42Z <Taek> bramc: I've also got a proposal to make selfish mining significantly harder. Hoping to have something done in a few days. Would be interested in collaborating on a paper if you've got time14:02
Taekyoleaux doesn't print the messages until you speak, I'm not sure if there's a more preferable way to do it14:04
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bsm117532What's this solution to selfish mining?14:05
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bramcTaek, What I did yesterday was mostly reinvent what's in the Mining is not Enough paper, but I'm curious what your idea is for a countermeasure14:06
bramc(the countermeasure suggested in that paper is busted, which you probably already knew)14:06
Taekbramc: my proposal is to mark blocks as 'late' if they appear more than 120 seconds after a block with the same parent. Chains built on top of late blocks need to be 2 blocks ahead instead of the usual 1 block ahead to be accepted as the longest chain14:08
Taekthe reasoning is that there's no honest situation in which a block is going to appear 120 seconds behind a sibling block. Any honest miner would have stopped mining on the parent long before that14:09
bramcTaek, Peers are free to do that based on their own local info although gossip info about lateness is of course not to be trusted14:10
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bramcI'm not sure that helps though, because a selfish miner can always publish their own siblings as soon as the other one is published14:12
phantomcircuitTaek, that gives a large advantage to miners able to distribute blocks rapidly outside of the p2p network14:12
phantomcircuitmaybe that's worth it, maybe it's not14:13
bramcMost of the papers assume some amount of attack along those lines, that an attacker is already set up to hit some fraction of all peers with their own block in response to a sibling being published14:14
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bramcHence my suggestion that when two siblings arrive at close to the same time the one which has a better weak references chain should win14:16
Taekah yeah, miner could publish a block late enough that nobody mines on it but early enough that it's before the 120 second window14:17
Taekphantomcircuit: I'm not sure what advantage you are talking about? As long as everyone is seeing things within 120 seconds it shouldn't advantage anyone14:18
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bramcI'm increasingly becoming convinced that having explicit weak backlinks is a good idea. There are three potential things: A weak link to a previous block, a weak link to the fully actualized transaction set for this block, and a weak link to the set of transactions which didn't make the cut14:20
bsm117532I'll just mention again that the "right" answer to this question is to allow sibling blocks to be non-conflicting by allowing the next block to have multiple parents.14:21
bramcbsm117532 That solution makes selfish mining attacks stronger14:21
bsm117532That is false.14:21
bsm117532bramc: That's only under the "Inclusive blockchain" proposal, which additionally adds GHOST.  It's GHOST that makes selfish mining stronger.14:22
bramcYou can withhold your own block, and then when someone else publishes a block publish your own block in response, and still get credit for it14:22
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phantomcircuitTaek, without getting into too much detail, an adversary can delay the propagation of blocks well beyond 120 seconds14:23
bsm117532See my explicit incentivization formula from my talk.  By computing the "cohort" of each block and using it in the reward formula, you can remove that attack.14:23
bramcIn the case of a weak backlink, there are two possible meanings for it: It can either refer to the actual transaction set of the previous block, or the fully actualized set, or let you specify. Probably best to let the user specify.14:23
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bsm117532bramc: There are a lot of choices beyond simply allowing blocks to have multiple parents.14:24
bramcbsm117532 I haven't slogged through all the details of your talk but my intuition is that you can't really solve the problem you can only push it around14:24
Taekphantomcircuit: if that's true, it's already a significant problem. Delaying the propagation of blocks to certain miners guarantees that those miners are going to have insurmountable revenue disadvantages due to high orphan rates14:24
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bsm117532bramc: the problem is fundamental and due to the size of the Earth and speed of light.  What you CAN do is make sibling blocks not punish one miner or the other.14:25
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bsm117532It's the ability of one miner to deny another profit that makes selfish mining work.  That must be removed.14:25
bramcbsm117532 I'm much more worried about selfish mining than the natural orphan rate14:25
bsm117532I'd agree bramc.14:26
bramcBut when you give rewards to old blocks you also lessen the incentive to mine off the latest block14:26
Taekthe core of the selfish mining attack involves giving the network a higher orphan rate than yourself. If you can make it so that there's minimal cost to producing an orphan, you stop the selfish mining attack14:26
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phantomcircuitTaek, it's difficult to delay propagation of blocks to specific recipients, but easy to delay to most of the network14:26
Taekthough I'm not convinced that you don't open up other, bigger problems14:26
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bsm117532Taek: yes.  I'm trying to make the cost of producing a sibling zero.14:27
phantomcircuitobviously im not going to describe how to do this, which is going to make it harder for you to think up countermeasures :P14:27
Taekbsm117532: that's also bad though, you need incentives to keep the network moving forward. Someone who is mining on a late block should have some sort of penalty.14:27
bsm117532Taek: That is present in my incentive formula.14:28
Taekphantomcircuit: does it involve network code, or does it involve speficially constructed blocks? I don't need to know more than that for what I'm working on right now14:28
bsm117532I'm very wary of "solving" this problem with arbitrary timing heuristics and band-aids, rather than pursuing a more fundamental solution, as this is a fundamental problem due to physics and a linked list being an over-simplified data structure.14:29
bramcbsm117532 Trying to give people credit for orphan blocks and trying to penalize people for mining old blocks seem to be directly contradictory goals14:30
phantomcircuitTaek, the former14:31
Taekbsm117532: changing the fundamentals is opening a whole new can of worms. The fundamentals as they exist are pretty well understood, if not pretty. I, and likely most of the bitcoin-core developers, would be slow to switch to any paradigm that changes the 6-year-proven blockchain. Kind of how cryptographers don't accept a new signature algorithm until the paradigms are very well explored14:31
bsm117532bramc: With a graph structure you have more power.  The former is a "sibling", the latter is measured using the "cohort".  For very small graphs they're the same, but for larger graphs they're not.14:31
bsm117532Taek: I'm well aware of opening a can of worms and it will take time to prove.  But let's just keep in mind that the true solution is allowing parallel blocks, and not invent heuristics in the meantime which make a better solution difficult or impossible.14:32
bsm117532(I'm not saying don't invent heuristics, just don't invent heuristics which make a better solution impossible) ;-)14:33
bramcbsm117532 There's also the question of which side wins in terms of its transactions going through, especially when fees are all transaction fees and not mining rewards, so a shorter blockchain may have better rewards14:33
psztorcWhat exactly are you trying to accomplish with this crusade against selfish mining?14:33
bramcpsztorc, Selfish mining is a very real threat to the network as a whole, it could cause massive pooling and reorgs if it started happening at scale14:34
psztorcA linear relationship between hashrate and revenue?14:34
Taekpsztorc: a variety of adversarial mining behaviors make it possible to impact competitor profitability with less than 30% of the hashrate. If you are doing multiple attacks at the same time, you don't need much hashrate at all14:34
psztorcImagine that all of mining ends up in two pools, each with 50% of the hashrate.14:35
psztorcShould they selfish mine, yes or no?14:35
psztorcAssume they are risk averse.14:35
bsm117532The larger goal is the decentralization of mining.14:36
Taekas long as only one participates in selfish mining, that one will be able to increase their revenue substantially14:36
psztorcSo, you would say "yes"?14:36
psztorcBoth should selfish mine?14:36
TaekI'm not sure what would happen if both started selfish mining14:36
Taekbut if a new miner appeared with 5% hashrate, it wouldn't be able to engage in selfish mining, and would be driven off14:37
psztorcImagine you are in one pool, and you are selfish mining.14:37
bsm117532psztorc: The incentives of the bitcoin system are not currently compatible with correct operation of the system. It's a rather fundamental problem to solve.14:37
psztorcWe'll see.14:37
psztorcYou are in a 50% pool which is selfish mining.14:37
psztorcYou have found two blocks against the latest public chain so far.14:37
psztorcWhat should you do?14:37
TaekIt's extremely important to me that a 1% miner can have, in adversarial conditions, as much profitability as a rational, selfish, stubborn, etc. miner with 33% hashrate and a whole boatload of resources to dedicate towards network based optimizations and attacks14:38
psztorcI intend to demonstrate that he can, Taek, if you would answer my questions.14:38
Taekok14:38
bsm117532psztorc: Are you going to argue that everyone should selfish mine, and that solves the problem?14:38
Taekwhat do you mean by 'against the latest public chain'?14:39
psztorcI am going to argue that anyone *has the option* to selfish mine, which, eventually, solves the problem.14:39
bsm117532psztorc: Only at the expense of network speed.14:39
Taekpsztorc: the problem there is that you can't profitably engage in selfish mining until you hit 29% hashrate. Smaller miners don't have selfish mining as an option available to them, and the more hashrate you have the more effective your selfish mining is14:40
psztorcForgive me, but does the phrase "off path reasoning" mean anything to you?14:40
bsm117532psztorc: If everyone selfish mines, the orphan rate goes way up, and the network is way slower.14:40
psztorcAh, I thought not.14:40
psztorcAnyway, back to Taek.14:40
bramcpsztorc, If a selfish miner gets ahead by two block they generally continue to hold onto and build their local chain and if the public network gets within one they publish the entirety of their private chain thus eclipsing the public network14:40
psztorcBy 'latest public chain' I mean that there is a publicly known block to everyone, call it the genesis block for all I care. Everyone has it at t=0.14:41
bramcbsm117532 The interactions between two selfish miners and the rest of the network are... interesting. I don't think that's been evaluated properly.14:41
psztorcDoes that make sense? It is just the starting block.14:42
bsm117532bramc: I'd rather fix the problem than analyze this broken incentive system...14:42
Taekpsztorc: If I am a miner with 50% hashrate, and the latest public chain is 2 blocks behind my private chain, I don't publish until the latest public chain is within 1 block of my private chain14:42
psztorcOk, now imagine you've found a third block. Still no word from the other mining pool.14:43
psztorcAnd remember I said to assume the miners are risk averse because they are.14:43
TaekIf I know that I've got even slightly more hashrate, it won't bother me14:43
Taekthe longer I don't hear from them, the further my own lead14:43
psztorcYou have exactly the same hashrate.14:44
psztorcAs far as you know, anyway.14:44
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psztorcMaybe you think you secretly have more, but, then, maybe the other pool is tricking you.14:44
Taekin that case I'm not sure what the optimal strategy would be, but selfish mining by both parties would cause a divergent network14:44
Taekat some point I'd publish, just to get the rest of the nodes to where I am14:45
Taekmaybe every 6 blocks or so14:45
bramcbsm117532 It seems your system, assuming it works, is very all or nothing: A simplified scheme which only allows siblings to be joined makes the problem worse14:45
psztorcThere we go....14:45
Taekpsztorc: ok, but what is the point?14:45
Taekit's a highly contrived example which doesn't generalize to how mining works in the full ecosystem14:45
psztorcLast point: assume that you have the ability, somehow, to learn how many blocks the other pool has.14:46
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bsm117532bramc: I'd agree with that, a new incentive formula is required as well.  But that basically goes without saying if you're going to allow two causally-disconnected miners to both be compensated.14:46
bramcIt's a good idea when you're ahead by 3 to publish your own first block14:47
bsm117532bramc: This comes down to calculating compensation after the state of the chain can be seen by all miners (e.g. 100 blocks later), rather than allowing miners to write coinbases for themselves.14:47
bsm117532It's allowing miners to write their own coinbases, and the ensuing incompatibility of them, that causes miners to be able to deny each other profit, and enables selfish mining.14:47
Taekbramc: yeah. my proposed solution is broken, hadn't considered miners would only publish part of their private chain. Using weak blocks seems like a good direction, but is going to require an entire weak block infrastructure14:48
bsm117532Perhaps a much simpler fix is to simply calculate coinbase rewards 100 blocks later, when everyone can see what happened with orphans.  I discussed this with sipa a while back and he was receptive to the idea.14:48
bramcbsm117532 I understand a bit better what your thinking is now, but I'd need to understand your whole idea a lot better and spend a fair amount of time thinking about it and hear feedback from others who had done the same before having confidence in it14:49
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bramcbsm117532 In the meantime we're continuing to do straightforward hacky fixes with the tools at hand14:50
bsm117532bramc: Paper coming.  I still hope to make ledgerjournal.org's Dec 31 call for papers.14:50
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Taekpsztorc: I'm not sure if you had more to add after your last point, but if I knew how many blocks the other pool had, I'd publish any time they caught up enough to threaten my lead. I'd also publish any time I was behind.14:50
psztorcYes, exactly.14:51
bramcTaek, Weak blocks infrastructure is being built for its own reasons, might as well add in selfish mining defense as a bonus while we're at it14:51
psztorcThe result is that mining is exactly the same as it is now, only riskier and with ~half the difficulty.14:51
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psztorcSmaller miners are just as valueable as big miners, because anyone with a coalition of >50% is in charge.14:52
bramcTaek, There's never any downside to publishing the blocks more than two back from your own tip14:52
psztorcThe concept of selfish mining makes no difference whatsoever, because the hashing power is homogenous.14:52
Taekpsztorc: yeah but also completely hostile to anybody not participating in either of the two pools. The two pools might be hostile towards eachother, but at least they don't need to fear any small competition. Being competitive with them would require getting to the same hashrate as them.14:52
psztorcIf anything, a market for hashrate would help.14:52
kanzurebsm117532: wouldn't it make more sense to have your paper reviewed prior to their deadline?14:53
psztorcYes, they would all have to participate, but not at any disadvantage.14:53
bsm117532kanzure: A call for papers is a submission deadline.  Then they send it to reviewers...14:53
psztorcNo no no these pools will be very fearful of competition...the rival pool can crush them with 55%.14:54
Taekbramc: I disagree. If I'm 100 blocks ahead, but have 10% hashrate, it's in my best interest not to publish *any* of them. I can get 10 more blocks in the time that it's going to take the network to catch up - if I published my previous 98 the network would catch up in only 2 blocks14:54
Taekhighly contrived, but proves a point14:54
Taekpsztorc: yes but not with 5%14:55
phantomcircuitTaek, but you dont know if other miners with >10% are also 100 blocks ahead14:55
bsm117532Previous conversation about calculating coinbases 100 blocks later is here: http://gnusha.org/bitcoin-wizards/2015-11-30.log at 07:3814:55
bramcTaek, Oh right, that's true. You should publish at least up to the point where you're one behind the public chain, or maybe tied with it. Ironically in that case you specifically want your own chain to fail in a test between siblings14:55
psztorcThe 49% pool will pay almost anything to get a new 6%.14:55
Taekphantomcircuit: yeah, I have been assuming that the rest of the network is *not* engaging in selfish mining, something I could probably measure14:55
psztorcThey get zero otherwise, they can off the 6% the entire revenue stream - epsilon.14:55
psztorcoffer*14:56
phantomcircuitTaek, it becomes extremely difficult to model if you stop assuming that14:56
psztorcSelfish mining is very interesting, but the fundamentals are very clear: the hashing power is homogenous, so the game is symmetric. 51% always wins.14:56
kanzurebsm117532: yes, good point, you said call for papers. ok.14:56
phantomcircuitTaek, realistically if a major pool is selfish mining you should expect everybody to respond to that14:56
psztorcThe fact that "Strategy X is better" only matters if "some people can't do Strategy X".14:57
Taekphantomcircuit: would you at least agree that if some subset of miners are engaging in selfish mining, it becomes very difficult for low-hashrate miners to compete? I do believe that much is true14:57
psztorcThat is not the case, so the fact that selfish mining is better does not matter.14:57
Taekhmm14:57
psztorcAsymmetric dual selfish mining is not in strategic equilibrium, so it is eliminated.14:58
phantomcircuitTaek, im not sure that's actually true if there are two roughly equal sized pools selfish mining14:58
phantomcircuitindeed they might just increase their orphan rate giving smaller pools an advantage14:58
phantomcircuitbut i honestly do not know (and dont think anybody has modeled this)14:58
psztorcDual selfish mining is riskier than plural selfish mining, so it is eliminated.14:58
bsm117532FWIW I'd avocate: calculate coinbases 100 blocks later, and assign a 25 BTC coin creation to the miners of ALL valid blocks (including orphans)  It doesn't solve the problem with tx fees and orphans (that requires a DAG), but solves the dominant economic problem for miners/selfish mining right now.14:59
bramcpsztorc, That... makes no sense14:59
Taekok. I can't say I understand very well what happens when everyone starts engaging in selfish mining, except that I know that when nobody is engaging in selfish mining, it's not profitable below 25% hashrate (unless you start using other attacks)14:59
bsm117532It removes the incentive to withhold blocks.14:59
psztorcbramc: What specifically do you not agree with?15:00
bramcbsm117532 It also causes there to be very little incentive to move the blockchain forwards15:01
bsm117532Eh, I withdraw that statement.  It make mining double spends way more profitable.15:01
bramcpsztorc, Selfish miners won't magically avoid having two of them just because it's a mess.15:01
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psztorcHow do you explain the current mining environment?15:02
psztorcIf selfish mining gives a superlinear advantage, there should be two (or one) pools.15:02
Taekpsztorc: none of the existing pools have enough hashrate to be engaging in selfish mining15:03
bsm117532bramc: People keep repeating this weird idea that miners would only mine on their own blocks (in a DAG or blockchain) but that makes no sense because ALL miners will mine on top of the largest cumulative work.  So you have a natural incentive to publish your block quickly in most circumstances because it gets *other* miners to mine on your block.15:03
Taekalso, most of the large pools are very benevolent. It seems today that our miners are largely altruistic, and would not engage in network-toxic behaviors. No guarantees that it will last, but it's nice to have for the time being15:03
bramcbsm117532 Thats the case now but if you make it so you can get credit anyway that incentive is dramatically lessened15:03
psztorcTaek: Firstly I don't think that's accurate. But it doesn't matter -- why don't they just form bigger pools (if it is more profitable)?15:03
psztorcThe one paper said 25% was enough.15:04
psztorcWhat is the difference between 'benevolent' and 'selfish', if you assume that is is possible that my theory is correct?15:05
Taekpsztorc: https://blockchain.info/pools - biggest pool is at 24%. People get very unhappy when pools get close to 50%, and those pools tend to start losing hashrate quickly15:05
bsm117532bramc: that's because you're calculating the cumulative work wrong: it's not the "height" anymore, it's the total number of ancestor blocks.15:05
bsm117532(assuming constant difficulty target15:05
psztorcTaek: ok but that doesn't answer my question -- if they are profitable, why isn't this being done?15:05
bramcTaek, They seem to have a gentleman's agreement not to mess things up. You can get away with that when there are small numbers of them, and when there are large numbers they can't collude. Having 100 miners each at 1% might be a lot more painful.15:06
Taekbramc: you think having 100 miners at 1% would be painful? To me it's closer to the ideal situation.15:07
psztorcWhat is the difference between "gentleman's agreement" and "profit maximizing", if we assume a negative exchange rate reaction to 'reports of an ability to slow network speed'?15:07
psztorc(aka 'selfish mining').15:07
Taekwell, the current gentlemans agreement does seem to be profit-maximizing behavior. At the very least it's causing any alarm bells that would be ringing to be quieter. But every individual has different utility functions, I don't think it's reasonable to assume that we won't see any selfish mining in the next 2-3 years, especially since there's no code to combat it yet15:09
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bramcpsztorc, The benefits of selfish mining only start at 1/3, and even there they're dubious: You need to go at least two weeks before the work difficulty goes down, and you lose 20% of your own value during that time, and get back 10% later, so you need to be fairly confident that your own fraction of hash power will stay a healthy percent above 1/3 for more than the next six weeks and be able to stomach substantial short term loss to justify it15:09
psztorcThis is still ignoring the fundamental symmetry.15:10
psztorcWhat if I paid someone to pretend to help my rival selfish mine...but then back out at the last second.15:10
psztorcHow much could I afford to pay him, if the rival could indeed be tricked.15:11
psztorc?15:11
bramcThere are interesting questions of how a selfish mining pool could enforce cooperation within themselves. I think it's entirely doable, but I'm not going to analyze how, much less publish notes on how to do it.15:12
bramcpsztorc, What you're saying seems to amount to selfish mining can't work because mumble mumble efficient markets mumble mumble profit maximization15:12
psztorcIf you didn't catch any words I'd be happy to repeat them.15:13
bramcYou've repeated them enough already15:13
psztorcAny miner can execute any known strategy, any miner can team up with another miner. So 50% will always be the threshold.15:14
AdrianGthats not a convincing argument15:15
bramcYou don't appear to understand what selfish mining is. We're discussing a very specific technical topic with actual properties. You can read the 'mining is not enough' paper if you are actually interested in details.15:15
psztorcI've read it.15:15
psztorcIf someone with 31% selfish mines, and someone else with 50% selfish mines, and 19% are honest, is that in strategic equilibrium?15:16
psztorcThe 31% will keep doing what they are doing?15:17
psztorc31% is enough?15:18
psztorcI'm sure it is...have fun with your tinkering, see ya later.15:19
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bramcThat was easier than I expected15:22
TaekThough it took a while to digest, I think his fundamental argument is that people will continue to adapt their behavior any time they find themselves on the losing side of an equation, teaming up or engaging in whatever tactics they need to in order to survive15:27
Taekwhich to me is a bit of a cop-out15:27
TaekI'd rather not have that overhead, and rather just exist in a system where everyone following a very simple, very defined set of rules yeilds them the optimal amount of utility15:28
bsm117532That's certainly a true argument, but useless.15:29
bsm117532We analyze the economic incentives under the best assumptions we can, and bitcoin requires that the net incentive moves the network forward...throwing up your hands is incompatible with using "profit maximization" as the mechanism of consensus.15:29
bramcAbout 'evil' soft forks: In general the definition of soft fork is that full nodes will continue to accept the new stuff. It also seems to be the case that a miner making no-transaction blocks should be able to mint new ones. But some soft forks result in there being transactions which appear valid to unupdated miners but cause their blocks to get orphaned, and other soft forks cause the number of transactions which old miners are able to accept to dro15:31
bramcp dramatically over time, possibly down to nothing, which also is potentially problematic. I don't know what the terms for those properties are, or if there are even standard ones.15:31
AdrianG optimal for whom?15:31
bramcThere have been soft forks with both of those properties which were uncontroversial: getting rid of concat for the first one, adding p2sh for the second15:34
bramcSo my questions are: What are the names for those properties, and what's the dividing line between having those properties and being 'evil'?15:36
frankenmintanyone here use this?:  https://cs.umd.edu/~amiller/shadow-bitcoin.pdf15:36
frankenmintI've read that there was a built in simulation tool in core software (from luke-jr) is this the same tool or is it different?15:37
Taekbramc: are you familiar with the BAR model?15:38
bramcTaek, no15:38
Taekbramc: https://www.cs.utexas.edu/~lorenzo/papers/sosp05.pdf15:40
Taekthe general idea is that you can divide your participants into a few categories. Some will be byzantine, meaning they'll fail in ways that hurt the system maximally. Some will be altruistic, meaning they will follow the protocol exactly no matter what, and the rest will be rational, meaning that they'll only follow the protocol if there's incentive, and they'll deviate from the protocol where there is incentive to do so15:41
bramcTaek, Thanks I'll read that paper later15:41
bramcTaek, While somewhat related that doesn't answer my questions15:42
bsm117532frankenmint: That's cool, I didn't know about it.15:45
Taekbramc: iirc p2sh wasn't actually uncontrovertial. There was a lot of discussion about how it should be done, then gavin merged a proposal because he did not want to keep waiting for nothing to happen15:49
Taekand as /r/bitcoin has demonstrated, there's no such thing as 'uncontrovertial' in Bitcoin :P15:49
jcorgansome people are only happy with controversy and if there is not enough, by golly, they will make some15:51
bramcWell, potentially acceptable if not uncontroversial15:53
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phantomcircuitTaek, which was a mistake since his version of p2sh is actually demonstrably worse than the other proposal15:57
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el33th4x0rSo, I blink and spend the day reading papers, and you guys all go ahead and have a huge selfish mining discussion without me.16:44
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kanzureel33th4x0r: i like how bramc quit as soon as you said that :-)17:03
el33th4x0rdidn't see that. he gave an excellent summary of selfish-mining related concerns earlier.17:05
kanzureany interesting papers in particular?17:06
el33th4x0rI very much like Aviv Zohar's follow-on paper on SM. Let me find the link...17:07
el33th4x0rhttp://arxiv.org/abs/1507.0618317:07
kanzure.title17:08
yoleaux[1507.06183] Optimal Selfish Mining Strategies in Bitcoin17:08
kanzureah.17:08
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brg444kanzure do you have link to segwit BIP ?17:15
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brg444ah nvm found it17:16
kanzurebrg444: https://github.com/bitcoin/bips/pull/26517:16
brg444yep thx17:16
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amillerfrankenm_, i don't think anyone is using shadow-bitcoin yet17:30
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bsm1175321amiller: I know the Bitcoin-NG guys ran a 1000 node simulated bitcoin cluster, with the actual core code.  Do you know how they did it, if not shadow-bitcoin?  In any case, I'll probably use it.18:19
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amillerel33th4x0r, ^^^^18:20
bsm1175321Oh he's on, thanks.18:20
bsm1175321Right now I'm doing simulations in python with my cartoon mental model of Bitcoin, but the next step is to use the core code.18:21
bsm1175321amiller: how does shadow-bitcoin efficently use the blockchain?  I assume I don't need 1000 copies of the 60+GB chain...but then it seems the different instances will conflict with each other when e.g. updating leveldb...18:24
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bsm1175321nm, your wiki page has what I need, I think.18:26
el33th4x0rwe built an emulation testbed, with links emulating the bandwidths and latencies we measured.18:27
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bsm1175321el33th4x0r: Is it all software?  Any chance it's open sourced or something I can use?18:28
el33th4x0rall software. we plan to release the testbed code on or before April. It has not been open sourced yet.18:29
el33th4x0rof course, you'll need a large cluster and a quiescent network to use it.18:30
bsm1175321Eek that's what I was afraid of.  :-(18:30
el33th4x0rif the study you want to do could lead to a publication for a student, we might be able to find a way to run your study here, locally on our own cluster.18:31
bsm1175321shadow-bitcoin seems too good to be true. Can you make a comparison?  Have you seen it?18:31
bsm1175321I'm no longer at an academic institution, but it will lead to a publication.18:31
el33th4x0rI know all about shadow-bitcoin. great work by amiller.18:31
bsm1175321Co-authorship is certainly doable.18:31
el33th4x0rok, awesome, why don't you email me a short description of the experiments, and I'll see if we can get one of our phd students interested.18:32
bsm1175321Ok, happy to!  Thanks!18:32
el33th4x0rawesome, looking forward to it!18:33
kanzuredo your phd students accept bribes like money and payment?18:33
bsm1175321Academics work for citations alone. ;-)18:33
el33th4x0r:-) haha, we are so corruptible!18:33
kanzureseems like a good opportunity to throw some people at various problems18:33
kanzureah i see, authorships.18:33
kanzurewell okay.18:33
bsm1175321See, I know the system.  ;-)18:34
el33th4x0rkanzure: more seriously, phd students can consult. but they are far more motivated when the problem is open, difficult and likely to yield a new result.18:34
kanzurewell more specifically i mean, in other contexts, i have to pay to fund a small "grant" or something, and then the university admins get 52% and etc etc18:35
el33th4x0rah, the overheads... bane of our existence.18:36
el33th4x0rfor industrial gifts, it's only 10%18:36
kanzurecool to hear you have some leeway in absence of grants tho18:36
el33th4x0rfor grants we get from government sources, the university takes 67% overhead.18:36
kanzurehaha what 67%18:36
el33th4x0ryeah, insane.18:36
coinoperatedthats nuts.  an actual government sponsored institution (the Smithsonian) only takes about 25% (from an NSF grant in this case)18:37
el33th4x0rtell me about it. When we say something about it, the administration says that Harvard's overhead is in the 70-something percent range.18:38
bsm1175321I left for private industry and am still trying to publish papers. Universities are dying.18:39
kanzuretheir inertia will play out for a long time18:39
el33th4x0rthey are certainly changing character.18:39
bsm1175321I'm more interested in progress than supporting dinosaurs built of administrators.18:39
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el33th4x0rthere are tons of idealistic people going into the system, so that tends to keep things afloat.18:40
coinoperatedIs that true for the whole school or just for the GSAS, and its different for the med school, etc?18:40
coinoperatederr i mean, the Cornell version of the GSAS18:40
el33th4x0rthis is true for engineering for sure. I believe it's also true for the sciences. I would not be surprised if the overheads were actually higher for the med school.18:41
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Guest14531sup19:17
Guest14531any of u guys lift?19:17
Guest14531was just telling my lady about bitcoins19:18
Guest14531she said she thought they sounded pretty boss19:19
Guest14531state cant control em and whatever19:19
Guest14531thats cool man19:19
kanzurewrong channel, this is actually buttcoin hq19:22
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Guest14531not into butt stuff19:24
Guest14531at least right now19:24
Guest14531;)19:25
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Guest14531whats going on with bitcoin what can i do to help make it better19:29
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Guest14531far out19:43
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coinoperatedthis being buttcoin hq we will need you to tithe some comedy gold first.19:59
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bramcI'm using locally defined functions like they're ghetto macros. I don't know if this is extremely pythonic or extremely not pythonic.23:58
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