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3601  Alternate cryptocurrencies / Announcements (Altcoins) / Re: NXT :: descendant of Bitcoin - Updated Information on: March 03, 2014, 02:50:56 AM
Alright. Hmm, so, we have no empirical data so far.

Indeed - and there was no empirical data presented to "justify" the penalty (or whatever we call it - the *name* of it is not an issue to me - so call it "a rose" but I still think it is a kludge and I am not convinced it will help with the security of the network).

By "fragmenting" the forks all over the place it will actually reduce the effectiveness of such attacks.

Why is that? Malicious nodes could spread forks all over the place and generate blocks very easily on top (because it's PoS not PoW) at the same time to suppress branches from other nodes.

The issue I am referring to is perhaps best illustrated like this:

A1 - B
A2 - B
A1 - C
A2 - D

So assuming that A1 and A2 have the "same weight" then B here is trying to keep both A1 and A2 branches going whilst C and D have each only built on the 1 branch.

Now here is a possible next step:

A1 - B
A2 - B - E
A1 - C
A2 - D - F

Here E and F have separately chosen A2 - B and A2 - D as being "their first choice" and only built upon those (being non-malicious nodes).

So now B's attempt to continue the A1 branch has failed (that fork will likely die now) simply because E did not try to forge 2 blocks at the same height.

Now if we were instead to use the "penalty" approach then in fact we would instead have this result:

A1 - B - E
A2 - B - E
A1 - C - F
A2 - D - F

As both E and F know they are going to get penalised by one or other branch they will forge on both branches causing the branching to continue.

I hope this helps clarify what I am seeing and why I think the idea of "only forging the 1 block at the one height" is a better approach (sure people can "cheat" but as shown provided those cheating are in the minority the effect is greatly reduced).
3602  Alternate cryptocurrencies / Announcements (Altcoins) / Re: NXT :: descendant of Bitcoin - Updated Information on: March 02, 2014, 03:07:09 PM
it is already there, but none knew how to implement it correctly neither to gain mass adoption of such a change to the protocols.

I don't think that it requires any *changes* to the Bitcoin protocol to achieve (although you can't broadcast the refund txs *in advance* as I am pretty sure they won't get included in each node's "memory pool" but that is no big deal).

Basically *no-one has tried it* (or if they have they haven't published this to my knowledge).

My guess is that from the Bitcoin perspective it would "help" alts (so no incentive for the core devs to even bother to try it) and from the alt coin side they simply don't have any devs *capable* of doing this (as generally they are just "copy-pasta devs").
3603  Alternate cryptocurrencies / Announcements (Altcoins) / Re: NXT :: descendant of Bitcoin - Updated Information on: March 02, 2014, 02:26:36 PM
Ah, so it relies on bitcoin script capabilities. AT would need to support the equivalent functionality too

Yes - you are correct (it has been something I've been thinking about).
3604  Alternate cryptocurrencies / Announcements (Altcoins) / Re: NXT :: descendant of Bitcoin - Updated Information on: March 02, 2014, 02:25:44 PM
Is there a post somewhere detailing this solution?  When I run it in my head all I see are many unresolved forks -- the opposite of what a blockchain is supposed to solve: consensus.  I think I don't understand the solution.

You always have the potential for forks (Bitcoin regularly has 2 different blocks with the same height although has rarely gone much further than that apart from when we had the DB change issue).

The resolution of a fork is when others "build new blocks upon what they see as the best chain".

The problem with a nefarious player is that they might be trying to "build a secret chain" in the background.

If it were possible for them to do so then it could easily be accepted as the "new chain" by all nodes *but* with the rule that an equal weight chain will be ignored unless it was the *first* one that the node sees will just make that attack *harder* (as other nodes will prefer to build upon the non-secret chain assuming weights are equal).
3605  Alternate cryptocurrencies / Announcements (Altcoins) / Re: NXT :: descendant of Bitcoin - Updated Information on: March 02, 2014, 02:17:42 PM
I never did fully understand this, but maybe I finally can. Just to be clear, in Step 2, if I dont know the secret number, how can I make a tx that needs it hash? Or if I just make it use the hash, then wouldnt the first party be able to complete the tx with the hash without revealing the secret?

The tx uses Bitcoin "script" to check the hash of a value (so you *leave out the value*).

In reality it's a little more complicated because you need refund txs (with timeouts) but basically the whole point is that the 1st tx can't happen *without disclosing the number that was hashed* (which is all that the 2nd tx needs to become valid).
3606  Alternate cryptocurrencies / Announcements (Altcoins) / Re: NXT :: descendant of Bitcoin - Updated Information on: March 02, 2014, 02:02:57 PM
In short...  you will be able to trade cryptos without the need of gateways/exchanges.

*Yes* it is the "secret sauce" to making a completely decentralised crypto to crypto exchange possible.
3607  Alternate cryptocurrencies / Announcements (Altcoins) / Re: NXT :: descendant of Bitcoin - Updated Information on: March 02, 2014, 02:00:37 PM
i havnt read anything about atomic cross-chain tx's? could you give a quick description please?

Assuming you have done an internet search but still not *understood* it then let me try and illustrate:

Step 1) I create a tx with a "secret" number (that you don't know) and give that tx to you (instead of the secret number there is a *hash* of it).

Step 2) You create a tx that will need the same secret number (due to needing the same hash) and give it back to me.

Step 3) In order for me to *get* your coins I have to *use* that secret number (and it is basically *impossible* to find another secret that has the same hash).

Step 4) As you can now *see* the secret you can complete your tx without fail.

This is a simplified description (use the internet to find the full description) but is perhaps an "easier read".
3608  Alternate cryptocurrencies / Announcements (Altcoins) / Re: NXT :: descendant of Bitcoin - Updated Information on: March 02, 2014, 01:36:52 PM
- build a great gateway á la james
- work hard on AT and atomic cross chain transactions

Without a doubt if we can achieve atomic cross-chain txs then we will have basically got rid of the business model for all exchanges that don't do fiat.

IMO "this is our job".

The future will not be centralised!
3609  Alternate cryptocurrencies / Announcements (Altcoins) / Re: NXT :: descendant of Bitcoin - Updated Information on: March 02, 2014, 01:31:30 PM
So there IS a decentralized solution?

*Yes* but it is not simple, nor quick and I don't believe that anyone has actually even done it.

Also it can't apply to Nxt itself until we have AT (as we don't have the equivalent of Bitcoin "script" until then).
3610  Alternate cryptocurrencies / Announcements (Altcoins) / Re: NXT :: descendant of Bitcoin - Updated Information on: March 02, 2014, 01:29:05 PM
Who to trust?

No-one - that is why atomic-cross chain transactions are the only *real solution* here (people trusted Gox and look where that has got them now).
3611  Alternate cryptocurrencies / Announcements (Altcoins) / Re: NXT :: descendant of Bitcoin - Updated Information on: March 02, 2014, 12:46:13 PM
For those interested in the Bitcoin *bug* that would occur in 2140 assuming it isn't fixed before then.

The relevant code from Bitcoin (in main.cpp):

Code:
 nSubsidy >>= (nHeight / Params().SubsidyHalvingInterval());

A simplified program to show you what happens:

Code:
#include <iostream>

using namespace std;

int main( )
{
   unsigned int x = 500000000;

   for( int i = 0; i <= 32; i++ )
      cout << "x >> " << i << " = " << ( x >> i ) << endl;
}

So if not fixed then Bitcoin isn't limited to 21M Bitcoins at all. Grin
3612  Alternate cryptocurrencies / Announcements (Altcoins) / Re: NXT :: descendant of Bitcoin - Updated Information on: March 02, 2014, 11:54:29 AM
but I think share fee group also maintains security in my humble opinion.

I'm afraid that I fail to see it (and posting the same stuff *again* and *again* is not productive - I am basically not even reading it now - it has become *spam* in my mind).
3613  Alternate cryptocurrencies / Announcements (Altcoins) / Re: NXT :: descendant of Bitcoin - Updated Information on: March 02, 2014, 11:41:57 AM
for me when I say fairness I mean this:

100 Nxt account is forging every day not every 10 year

Again - the changes being proposed are for security not fairness (you are not focusing on the right thing).
3614  Alternate cryptocurrencies / Announcements (Altcoins) / Re: NXT :: descendant of Bitcoin - Updated Information on: March 02, 2014, 11:38:21 AM
I work on a model for that.

Please do.

Have you posted results with the penalty model? I may have missed them. Could you point me to them?

I did not as the attempts to model this in my simulator all came out with "disastrous" results (which are likely just due to the simulator so would not be of any value at all).

So, it will lead to a split network and that might open doors for an even bigger attack. Splitting the network into smaller and smaller chunks. Until new nodes only become part of a little branch of the DAG.

Frequent forks are *expected* to occur in a system with (compared to Bitcoin) fast confirmation times (BCNext said that in his introductory post).

By "fragmenting" the forks all over the place it will actually reduce the effectiveness of such attacks.
3615  Alternate cryptocurrencies / Announcements (Altcoins) / Re: NXT :: descendant of Bitcoin - Updated Information on: March 02, 2014, 11:24:47 AM
I still like the idea of penalty as it is the simplest solution.

Actually it's not the simplest and it is far from certain that is even a solution (all attempts to even "simulate" it have failed to show any benefit at all so far).

What about new nodes in CfB's solution? Which branch of the DAG should they choose?

New nodes will get their information from their peers (so whichever peer they got a branch from first is the one they will stick to in case of another equal weight branch appearing).
3616  Alternate cryptocurrencies / Announcements (Altcoins) / Re: NXT :: descendant of Bitcoin - Updated Information on: March 02, 2014, 10:53:20 AM
Not sure how one guy would be in charge of three INDEPENDENT gateways. This is what I have been saying. We need to find three different, independent, separate, not the same guy, gateway operators.

That is not possible. You cannot formally prove that.

True - and presumably you should also be able to choose from 1 of x such 3 server gateways.
3617  Alternate cryptocurrencies / Announcements (Altcoins) / Re: NXT :: descendant of Bitcoin - Updated Information on: March 02, 2014, 10:50:31 AM
Addressing how TF will be implemented should be focused on protecting the blockchain (#1) and the network (#2).

Issues of "fairness" (perceived or otherwise) are at best a #3 priority (if even that).
3618  Alternate cryptocurrencies / Announcements (Altcoins) / Re: NXT :: descendant of Bitcoin - Updated Information on: March 02, 2014, 10:27:27 AM
What happens if the URI becomes unavailable?

AMs are not intended to hang around forever anyway (they are expected to be removed when a pruning occurs) so I don't see that as being an issue.

The point is that layers on top of the basic Nxt platform will need to use AMs (especially things like ATs) so we need to make it easier for "clients" to know how to handle different "message types".
3619  Alternate cryptocurrencies / Announcements (Altcoins) / Re: NXT :: descendant of Bitcoin - Updated Information on: March 02, 2014, 10:24:25 AM
I am not certain that it's over. The selfish-mining problem is still present in the current implementation and we have two different approaches to tackle it:
 - penalty
 - limiting forging power of an account

I have been advocating for the latter (and for scrapping the idea of the former) and CfB came up with a great idea to stop the effectiveness of forgers trying to extend multiple chains of equal weight (each client will only build on the 1st chain of equal height that they see).

Understand that the *best* way to protect the blockchain is always going to be having forging power divided up into roughly equal smaller pieces (whether or not the software tries to enforce that or not).
3620  Alternate cryptocurrencies / Announcements (Altcoins) / Re: NXT :: descendant of Bitcoin - Updated Information on: March 02, 2014, 08:45:03 AM
Now that I've thought about it a bit further I think I would actually prefer that we have a fixed prefix (say 16/32/64 bit) that indicates a message type with type #0 being raw data, type #1 being UTF-8 text and type #3 being URI (and maybe we could consider using the alias system to effectively map each of these type numbers to an internet media type http://www.iana.org/assignments/media-types/media-types.xhtml).

Although it's a little ugly I've realised that otherwise ATs are going to require far more complicated code (and we don't want to force that).

(that should make James happy I think)
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