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January 04, 2016, 09:55:24 PM |
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We need a Decentralized (human decentralized), Scalable, Secure, Anonymous and Efficient (micro transactions enabled, quick and cheap) MONEY system, in that order.
Proof of Work consensus protocol is a waste of computational resources, that’s why it will not be scalable and decentralized at the same time. We propose a solution called Proof of Raffle.
The protocol can establish that miners must always fill up the block up to the size limit (today 1 mega), and transactions must be ordered in time stamp and alphabetical order into the block. Then all miners could achieve almost exactly the same transactions in the exact same order into each block.
Nodes that reach the block size limit automatically send their proposed block to the network. Then every node complements their proposed block with the transactions that are included in other proposed blocks. New transactions received at this point go to the mem pool to be considered in the next block. When a node has received the proposed blocks from a minimum of 80% of all other "active nodes" (nodes that first confirmed any of the transactions included in the block) and included all the missing transactions, then this node has its CONFIRMED BLOCK.
Forks can happen if there are more than one confirmed different last block. The confirmed block with the less number of transactions wins.
Also the heavier blockchain, the one that has more different nodes confirming transactions first in every block of the blockchain, wins.
Problem/Solution: The isolated island problem: If we have a little island where lots of heavy transactions are made per second, and they manage to work for one day long without connecting with the rest of the world, and suddenly they connect and make a big blockchain fork… Yes they could manage to confirm a lot of blocks in their blockchain and yes the first block of the fork from the rest of the world would have fewer transactions that the equivalent block from the rest of the world, BUT, they will ever count more node confirmations along the blockchain so they will lose.
Then the miners could obtain the concatenated hash (hash from last block and merkle hash from actual block hashed all together) of the block. From this SHA-256 hash we pull only the numbers and obtain a BIG NUMBER. Also we make a circular list of active nodes (nodes that were the first to validate each transaction in this actual block) and we order them according to their arrival position in the block, in a circular way (the last node is next to the fist node of the list) where any node only have one position on the circular list. Starting from the first node of the list (the node that validated the first transaction included in the block), we use the BIG NUMBER to count around the circular nodes list until we pick the winner. This will be the proponed winner node that will benefit from the coinbase transaction (money created).
Sybil attacks can be avoided by a Proof of Steak in every active node.
Problem/Solution: People owning more active nodes would be a centralization risk on the long run, but, owning a node will be very cheap, so there will be many of them, originating the “lottery ticket” effect for all of the raffle participants.
Different methods can be used to make more than one winner in every raffle cycle, so financial exposure will decrease for miners. For example: Counting N times the BIG NUMBER around the active nodes circular list, where N = Active nodes / 1000. We will have N winner nodes in every raffle cycle.
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