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221  Bitcoin / Legal / Re: Is Bitcoin Legal? on: June 09, 2015, 08:58:50 PM
Lol my country looks green but im pretty sure government doesnt know what btc is. If they knew it would be dark red:)

Yes if the government doesnt know what bitcoin is how can you expect that the people would be aware of it.. no doubt people are much more educated and advanced as compared to government in my country but still nobody have shown their willingness to know what bitcoin is all about.

i believe that the government should take a step ahead to create an awareness in the people regarding the bitcoin but it is like day dreaming. cant afford to trust the government when it comes to the usage of bitcoin in the country as it is threat to fiat they will never support bitcoin.

I'm possibly less a fan of governments 'educating' people on Bitcoin than most.  I prefer they concern themselves with 'important matters of state' or whatever else they waste the continuous flow of money and life that they suck out of their populations.
222  Economy / Speculation / Re: Gold collapsing. Bitcoin UP. on: June 09, 2015, 08:54:28 PM
I say you have spoken like a true agent, Silk Road is dark web stuff.

I like the term "cypher-space" over dark web.  Just saying.
223  Economy / Speculation / Re: Gold collapsing. Bitcoin UP. on: June 09, 2015, 08:53:13 PM
In the great Bitcoin experiment of ours...
It is increasingly likely that we will experience a scarcity market for transactions, at least for a time.
It will be some interesting data.
I doubt it will be the 'end of bitcoin', or whatever the rush to increase folks are worrying over.

Full node volume has declined from a high point of about 250K in 2011 to maybe less than 10K nodes?
With the only incentives for running a full node being non-economic, primarily informational or possibly security concerns, it will be interesting to see if that rate of decline stabilizes somewhere.

250K was not due to economic incentives. There was no choice back then.

I know, but it was still worth it.
Its a downward trend for years.  Whether/when it levels or begins increasing, and under what conditions will prove interesting.  Don't you think?

did you listen to the Mike Hearn interview on Epicenter Bitcoin?  he says the measuring methods used back then were poor and primitive and likely overestimated the #full nodes probably well under 100K.  today its better and we're at around 6086.

it's also downtrended mainly b/c of the proliferation of spv clients, imo.

I agree with the reasons, (lack of/creation of other options, and yes cost).  I am running fewer full nodes myself now than even two years ago.
224  Economy / Speculation / Re: Gold collapsing. Bitcoin UP. on: June 09, 2015, 08:50:50 PM
i would like to propose a compromise.

let the Blockstream folks insert their SPV proof into source while simultaneously eliminating the block size limit. then we can see which Ferrari will go faster.

the network effect of sound money vs that of SC's (speculation). it would be a fantastic test of the market.

No deal.  Sidechains are, as nullc and pwuille already patiently explained to you last night, "completely orthogonal to the blocksize debate."

Did you sleep well after getting spanked and pouting until downvoted?   Grin

One interesting quote there:
"The blocksize debate if anything substantially slowed the release, absorbing mindbogglingly enormous amounts of time, and also having avoid including some scaling tools to avoid people getting confused that sidechains themselves were a scaling answer."

In the process of trying to show how they are not a conflict of interest, he uses a conflict of interest (time devoted).
The thing is, he is right sidechains are only a factor in scaling, but they aren't the answer.  They do provide for some scaling, but not at all a full solution.

They waste a lot of time trying to claim that there isn't a conflict of interest.  The better method is to simply acknowledge it and move on.  People are fairly accepting of the risk for now, but their efforts to fight it and claim it doesn't exist both make them look foolish and waste their time.
225  Economy / Speculation / Re: Gold collapsing. Bitcoin UP. on: June 09, 2015, 08:42:42 PM
In the great Bitcoin experiment of ours...
It is increasingly likely that we will experience a scarcity market for transactions, at least for a time.
It will be some interesting data.
I doubt it will be the 'end of bitcoin', or whatever the rush to increase folks are worrying over.

Full node volume has declined from a high point of about 250K in 2011 to maybe less than 10K nodes?
With the only incentives for running a full node being non-economic, primarily informational or possibly security concerns, it will be interesting to see if that rate of decline stabilizes somewhere.

250K was not due to economic incentives. There was no choice back then.

I know, but it was still worth it.
Its a downward trend for years.  Whether/when it levels or begins increasing, and under what conditions will prove interesting.  Don't you think?
226  Economy / Speculation / Re: Gold collapsing. Bitcoin UP. on: June 09, 2015, 08:12:06 PM
In the great Bitcoin experiment of ours...
It is increasingly likely that we will experience a scarcity market for transactions, at least for a time.
It will be some interesting data.
I doubt it will be the 'end of bitcoin', or whatever the rush to increase folks are worrying over.

Full node volume has declined from a high point of about 250K in 2011 to maybe less than 10K nodes?
With the only incentives for running a full node being non-economic, primarily informational or possibly security concerns, it will be interesting to see if that rate of decline stabilizes somewhere.
227  Bitcoin / Development & Technical Discussion / Re: Elastic block cap with rollover penalties on: June 09, 2015, 07:38:47 PM
You need to be thinking in terms of reward per block. Of course the 33% miner should get about x33 the rewards of a 1% miner, simply because he's bigger. What we don't want is that the big miner would have more than x33 the rewards (superlinear gain). What I've shown is that the big miner actually gets less than x33 the total rewards of a small miner, or in other words, that the reward per block is smaller for the big miner.
This is simultaneously the best feature of the proposal, and the one most likely to prevent it from becoming part of Bitcoin.

Ok. I was primarily refuting the implied claim that this formula would make sense when applied to Bitcoin.
There was no such claim, implied or otherwise.
The coins are fundamentally different, but the similarity of this feature would have provided a good place to have started, if you had known of it.
Better late than never though.
228  Bitcoin / Development & Technical Discussion / Re: Elastic block cap with rollover penalties on: June 09, 2015, 11:22:16 AM
One difference with the Monero model is that the amount of the fee is not a factor of the penalty, nor is size of the coinbase reward.  The penalty is not multiplied by the block reward.  Additive, not multiplicative.

I'd missed that detail at first pass because it seemed impossible for anyone to advocate such a function, when on its face it seems to fail the 'future-proof' test.  

Without knowing what the fees will be in the future, how can the penalty be the same for every transaction?  Fee amount tends to adjust with how much milk and bread a bitcoin can purchase.  The penalty may thus become overly burdensome (if bitcoin value increases) or meaningless (if it falls).
We can know the coinbase reward, but we should not always expect that to be 99% of the total as it is now.  This will matter later.

The advantage of the Monero multiplicative method is that it does not have to guess, it works at all fee levels, block rewards, valuation, etc.
229  Bitcoin / Development & Technical Discussion / Re: Elastic block cap with rollover penalties on: June 04, 2015, 07:13:56 PM
I see your point in that the amount of the fees are not part of the calculation of the penalty.
However, why would anyone mine a block for which they will not be paid?  
The incentive would remain to move fees off chain, especially as the coinbase reward decreased.
Off-chain fees would not be subject to the seizure and redistribution of the rollover.
Better for the miner to guarantee positive revenue and get it on the side.

I still don't follow you.

Why does it matter wether the fee is payed on- or off-chain. The penalty is the same and the miner has to pay it either way.

By miner has to pay it, we mean "not paid to miner but to rollover pool instead"?  They miner is never paying anything, they are simply not given the reward, yes?
230  Economy / Speculation / Re: Gold collapsing. Bitcoin UP. on: June 04, 2015, 07:09:08 PM
Ironically, if it CAN be done in 1 month, that speaks pretty negatively about decentralization -- in the same sense that all the different central banks don't make the system decentralized.  They are all marchin in step to the same drummer.

I don't see how that's the case. If it's a good idea, and everyone's doing it, then the trade-off becomes attractive for just about everyone, so it can happen pretty fast without any centralization. Marching in lockstep doesn't mean centralized (of course; that's the whole idea of Bitcoin in a way). Isn't there some kind of alert key that goes to every full node? SPV nodes don't matter. If the problem is just alerting everyone that a fork is coming and they have to choose sides, then what is the worst that can happen? Can someone even operate a full node without seeing the alert?

This begs the question.  It presupposes success.
When a fork occurs, you are on one side or the other at the time of the fork.

"If everyone's doing it" means that they have already done it, so there is no longer anything to be attractive to them.  It is an event, not a migration.  Unless you are imagining many many failed forks until one finally succeeds, which would be exceedingly chaotic.
231  Bitcoin / Development & Technical Discussion / Re: Elastic block cap with rollover penalties on: June 04, 2015, 07:04:05 PM
I see your point in that the amount of the fees are not part of the calculation of the penalty.
However, why would anyone mine a block for which they will not be paid?  
The incentive would remain to move fees off chain, especially as the coinbase reward decreased.
Off-chain fees would not be subject to the seizure and redistribution of the rollover.
Better for the miner to guarantee positive revenue and get it on the side.
232  Economy / Speculation / Re: Gold collapsing. Bitcoin UP. on: June 04, 2015, 06:47:33 PM
Yes because almost everyone agrees it should be raised (Greg and Luke excepted, though they agree it should be raised eventually). The poll didn't ask about raising to 20MB.

The devil is in the details, with no details, its all angels.

I suppose I would vote "NO" to most any change without knowing the details, but not "NO" to change itself.  I think Gavin is getting closer and closer to something that will make sense.  He is down to 8mb now, changed at a particular future block?
233  Economy / Speculation / Re: Gold collapsing. Bitcoin UP. on: June 04, 2015, 06:43:26 PM
Anyone guessed my paradigm shift yet?

The goal is clear enough, and laudable.  It is the path to that goal that remains occluded.
234  Bitcoin / Development & Technical Discussion / Re: Elastic block cap with rollover penalties on: June 04, 2015, 06:24:02 PM
Can you explain a bit about the mechanism wherein the miner pays into the rollover pool, and why that is different from the 'original proposal'?  It is not obvious why this dictinction makes a difference.  It seems to still incentivize out of chain payments to miners for transaction inclusion regardless of whether it is paid by the miner, or deducted from the miner's reward, both are dependent on the fees in the block (which aren't there in out of block payments schemes).

I think the penalty is not dependent on the fee:

The miner of a large block must pay a penalty that depends on the block's size.

So it still has to be paid regardless of wether or not the tx fee payment was on- or off-chain.


This is penalty then ONLY taken from the coinbase reward and not also TX fees?
How would this method survive the successive halvings (much less the eventual cessation)?

The penalty will be deducted from the funds he collects in the generation transaction

I read that as "from reward, tx fees and rollover pool input".

Thanks for that, it was my reading also.
Thus TX fees that are not in the block but paid out of band are not subject to penalty...

Another difference, is that in the Monero method, the penalty can not reduce the block reward to below zero and make the block invalid.
There are many similarities, but also some important differences with the time tested Monero method and the current proposal.
235  Bitcoin / Development & Technical Discussion / Re: Elastic block cap with rollover penalties on: June 04, 2015, 06:02:43 PM
Monero avoids this problem, but most of the rest of this proposal has been implemented and running for quite a long time.  Its not new, or novel, except in ways that it is not as good.

When Gavin says "I need to see working code", he probably means code he can directly deploy to his test setup within the framework of bitcoin-core. I can relate to this demand and find it reasonable.


Sure, there are quite a few edits that would be needed.
However, it has also been deployed and shown to work over time without pernicious economic effects. 
236  Bitcoin / Development & Technical Discussion / Re: Elastic block cap with rollover penalties on: June 04, 2015, 05:59:23 PM
Can you explain a bit about the mechanism wherein the miner pays into the rollover pool, and why that is different from the 'original proposal'?  It is not obvious why this dictinction makes a difference.  It seems to still incentivize out of chain payments to miners for transaction inclusion regardless of whether it is paid by the miner, or deducted from the miner's reward, both are dependent on the fees in the block (which aren't there in out of block payments schemes).

I think the penalty is not dependent on the fee:

The miner of a large block must pay a penalty that depends on the block's size.

So it still has to be paid regardless of wether or not the tx fee payment was on- or off-chain.


This is penalty then ONLY taken from the coinbase reward and not also TX fees?
How would this method survive the successive halvings (much less the eventual cessation)?

If it includes the TX fees (which likely it must), then to the extent that fees are off chain, they are not subject to the penalty.
237  Bitcoin / Development & Technical Discussion / Re: Elastic block cap with rollover penalties on: June 04, 2015, 05:41:22 PM
Can you explain a bit about the mechanism wherein the miner pays into the rollover pool, and why that is different from the 'original proposal'?
The difference is quantitative. In this version the rollover effects only blocks that exceed a threshold of size.

OK, so its similar to Monero.
But there is a difference between this proposal and what Monero does that appears that it might need to be addressed.

The rollover pool creates an incentive for the miner to not use the fee pooling, and instead contract directly with the TX creators.
If implemented as written, this could become a problem.  Large TX creators and large miners would have an incentive to cartel because of the way this rollover pool works.

Monero avoids this problem, but most of the rest of this proposal has been implemented and running for quite a long time.  Its not new, or novel, except in ways that it is not as good.
An examination of the prior art is warranted.
238  Bitcoin / Development & Technical Discussion / Re: Elastic block cap with rollover penalties on: June 04, 2015, 04:32:01 PM
Isn't it precisely what is implemented in Monero? (except you don't have a rollover pool, the penalty is simply deducted from the block reward for good).
No idea what happens in Monero, but if so, more power to them.

Apparently, neither does Gavin.
He said he didn't want to talk to you until there was working code that does it?
Such code has been working for years, but people forget where the experimentation is occurring, the alts.
A good place to start:
https://github.com/monero-project/bitmonero/blob/54fbf2afb3bc029823ed6c200e08bd21fe42ac10/tests/unit_tests/block_reward.cp
and
https://github.com/monero-project/bitmonero/blob/c41d14b2aa3fc883d45299add1cbb8ebbe6c9ed8/src/cryptonote_core/blockchain.cpp#L2230-L2244

Can you explain a bit about the mechanism wherein the miner pays into the rollover pool, and why that is different from the 'original proposal'?  It is not obvious why this dictinction makes a difference.  It seems to still incentivize out of chain payments to miners for transaction inclusion regardless of whether it is paid by the miner, or deducted from the miner's reward, both are dependent on the fees in the block (which aren't there in out of block payments schemes).
239  Economy / Speculation / Re: Gold collapsing. Bitcoin UP. on: June 04, 2015, 05:20:47 AM
It's interesting how people talk about Monero as if we know for sure the privacy achievable in Monero is greater than the privacy achievable in Bitcoin.

Has anyone measured it?

Yes, Monero's privacy has been "measured" (if by "measured" you mean 'mathematically proven') and we thus do know for sure it's better than Bitcoin's.

https://downloads.getmonero.org/whitepaper_review.pdf

Some of the privacy of Monero would be achievable using Bitcoin, but only if everyone changed their operational security methods.
JustusRanvier uses stealth addresses, which privacy would be further improved if he only transacted with others who also do this.  Ring signatures can also theoretically be accomplished albeit with some difficulty by using a client that could support this sort of key signing exchanges.

The problem for privacy remains, however, that since these are not a fundamental part of the protocol and a default for each transaction.  There are limits to the amount of privacy that can be obtained in the face of correlation analysis by a well funded reveal-er of such secrets.
240  Economy / Speculation / Re: Gold collapsing. Bitcoin UP. on: June 04, 2015, 03:41:39 AM
Gavin's allusion to Greg overextending himself is an example of his pragmatism and balance. Gavin made choices based on being able to deliver, not based on what is ideal. My successes have come from being more like Gavin. My failures have come from being more like Greg.


Fundamentally, Gavin has assigned himself this problem.  He is diligently canvassing and curating opinions on the problems and methods of resolving them.
It can be frustrating work, but it is fully necessary.

He is getting a lot of help in this effort so it is not merely a contest of wills and personalities.  Also...Both Greg and Gavin are on the same team and not opposed, though their weighting of the priority of tasks may differ, so it is not really so much a matter of winner/loser.
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