Bitcoin Forum
May 08, 2024, 01:28:09 PM *
News: Latest Bitcoin Core release: 27.0 [Torrent]
 
   Home   Help Search Login Register More  
Pages: « 1 2 3 [4] 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 41 42 43 44 45 46 47 48 49 50 51 52 53 54 ... 64 »
  Print  
Author Topic: DECENTRALIZED crypto currency (including Bitcoin) is a delusion (any solutions?)  (Read 91075 times)
Jetboy
Newbie
*
Offline Offline

Activity: 9
Merit: 0


View Profile
January 09, 2016, 01:49:40 PM
 #61

Note I added point #3 as why PoS is MUCH less secure than PoW.

Basically this boils down to the same conceptual tradeoff as the post where I replied to ArticMine, in that allowing decentralized participating enables unbounded conditions (which is a flaw) but centralizing participation also leads to another set of flaws.

Crypto currency is flawed as a concept. Appears it can't work.

Completely decentralised, maybe it is (like FTL space travel). You could be 100% spot on, I'm not arguing that. However, maybe the notion of a completely decentralised currency is also flawed.

Since you genuninely seem to care for the common good, please consider what's more important to everyone: Perfection or improvement?

I could argue that the notion of value/power always leads to some centralisation or other. There is no technical fix to that, simply because: We have computers that can beat your computers.

On a practical level for overall improvement, the question becomes what implementation keeps centralisation in check as much as desirable.
1715174889
Hero Member
*
Offline Offline

Posts: 1715174889

View Profile Personal Message (Offline)

Ignore
1715174889
Reply with quote  #2

1715174889
Report to moderator
1715174889
Hero Member
*
Offline Offline

Posts: 1715174889

View Profile Personal Message (Offline)

Ignore
1715174889
Reply with quote  #2

1715174889
Report to moderator
Remember that Bitcoin is still beta software. Don't put all of your money into BTC!
Advertised sites are not endorsed by the Bitcoin Forum. They may be unsafe, untrustworthy, or illegal in your jurisdiction.
1715174889
Hero Member
*
Offline Offline

Posts: 1715174889

View Profile Personal Message (Offline)

Ignore
1715174889
Reply with quote  #2

1715174889
Report to moderator
monsterer
Legendary
*
Offline Offline

Activity: 1008
Merit: 1002


View Profile
January 09, 2016, 02:02:46 PM
 #62

Crypto currency is flawed as a concept. Appears it can't work.

It can and is working, but perhaps not ideally. What we can say with certainty is that cryptocurrency will always be less efficient than a centralised service, but that doesn't mean it is untenable in general.
TPTB_need_war (OP)
Sr. Member
****
Offline Offline

Activity: 420
Merit: 262


View Profile
January 09, 2016, 03:23:25 PM
Last edit: January 09, 2016, 03:52:46 PM by TPTB_need_war
 #63

I also am thinking along the lines of the last three posts and I also still want to reply to CoinHoarder's post upthread.

But before I respond to your 4 posts, I want to first discuss what are the real threats or problems with pools, because I think analysing this helps to understand how my idea for improving Bitcoin might play right into the theme of your 4 posts. Thus it does appear we are making some progress on mutual understanding. Thank you for the very thoughtful discussion.

Afaics the biggest flaw of pooled mining is that there is always an economic incentive to mine with a pool (in Satoshi's design) that has a double-digit percentage of the network hash rate, because otherwise revenue for miners declines (in scenarios). This is fundamental mathematics. Miners can in theory move their hashrate away from pools who are doing malfeasance, but it remains that 50% of the hashrate will always be concentrated into roughly less than a dozen or so pools. Thus pools are an easy target for government regulation and takeover control of the mining of Bitcoin. Or the natural mathematical tendency is for pools to form an oligarchy.

But more than that is that miners aren't users. They are people who invest in specialized hardware for a return on the investment. Thus their interests are not aligned to the interests of permissionless commerce economically (even though it might be ideologically, the fact is that over time mining will concentrate to those who maximize economic return from mining). Thus miners really don't have an incentive to fight government takeover. They will acquiesce because economically (mathematically) they must.

Whereas if users were the ones submitting at least 50% of the proof-of-work (and not doing so for profit but because they must with every transaction), then in theory their interests are aligned with permission less commerce so one would hope they would move away from pools that are doing malfeasance. But even then we know most of the masses are apathetic and clueless (e.g. will let Coinbase, MtGox, and Cryptsy store their coins), and thus they could maybe still be fooled, but at least then the issue isn't economically doomed but rather an education issue.

Also it can also be possible that the smartest minority forks away from the dumb masses and any malfeasance they might be doing on destroying permissionless commerce. For example, supporting Lightning Networks is dumb as shit if you want permissionless commerce because it can only work reasonably smoothly if run by an oligarchy of corporate providers. If the economics doesn't always drive the same failure again after forking away from the dumb masses, then perhaps my thread from 2013 No Money Exists Without the Majority can be proven incorrect.

So I am contemplating that the real threat to permissionless commerce are fundamental problems with Satoshi's design that would make forking away from it mathematically implausible:

[...]that doesn't really solve the fundamental problems such as:


Iota has attempted to go down this route and eliminated pools and mining for profit. But as I said, I think they introduced a Byzantine fault.

patmast3r
Hero Member
*****
Offline Offline

Activity: 980
Merit: 1001


View Profile
January 09, 2016, 03:41:41 PM
 #64

I also am thinking along the lines of the last three posts and I also still want to reply to CoinHoarder's post upthread.

But before I respond to your 4 posts, I want to first discuss what are the real threats or problems with pools, because I think analysing this helps to understand how my idea for improving Bitcoin might play right into the theme of your 4 posts. Thus it does appear we are making some progress on mutual understanding. Thank you for the very thoughtful discussion.

Afaics the biggest flaw of pooled mining is that there is always an economic incentive to mine with a pool (in Satoshi's design) that has a double-digit percentage of the network hash rate, because otherwise revenue for miners declines (in scenarios). This is fundamental mathematics. Miners can in theory move their hashrate away from pools who are doing malfeasance, but it remains that 50% of the hashrate will always be concentrated into roughly less than a dozen or so pools. Thus pools are an easy target for government regulation and takeover control of the mining of Bitcoin. Or the natural mathematical tendency is for pools to form an oligarchy.

But more than that is that miners aren't users. They are people who invest in specialized hardware for a return on the investment. Thus their interests are not aligned to the interests of permissionless commerce economically (even though it might be ideologically, the fact is that over time mining will concentrate to those who maximize economic return from mining). Thus miners really don't have an incentive to fight government takeover. They will acquiesce because economically (mathematically) they must.

Whereas if users were the ones submitting at least 50% of the proof-of-work (and not doing so for profit but because they must with every transaction), then in theory their interests are aligned with permission less commerce so one would hope they would move away from pools that are doing malfeasance. But even then we know most of the masses are apathetic and clueless (e.g. will let Coinbase, MtGox, and Cryptsy store their coins), and thus they could maybe still be fooled, but at least then the issue isn't economically doomed but rather an education issue.

Also it can also be possible that the smartest minority forks away from the dumb masses and any malfeasance they might be doing on destroying permissionless commerce. For example, supporting Lightning Networks is dumb as shit if you want permissionless commerce because it can only work reasonably smoothly if run by an oligarchy of corporate providers.

So I am contemplating that the real threat to permissionless commerce are fundamental problems with Satoshi's design that would make forking away from it mathematically implausible:

[...]that doesn't really solve the fundamental problems such as:


Iota has attempted to go down this route and eliminated pools and mining for profit. But as I said, I think they introduced a Byzantine fault.

I think miners insterests are more aligned with users interests than you think. Afterall if the currency they are mining becomes worthless their operation becomes worthless as well. So anything that hurts the value of their currency is neither in the interest of the miners nore in the interest of users. Of course there are other subjects where their interests do not align.

Come-from-Beyond
Legendary
*
Offline Offline

Activity: 2142
Merit: 1009

Newbie


View Profile
January 09, 2016, 03:41:53 PM
 #65

Crypto currency is flawed as a concept. Appears it can't work.

This reminded me "Decentralised Currencies Are Probably Impossible But Let’s At Least Make Them Efficient"...
TPTB_need_war (OP)
Sr. Member
****
Offline Offline

Activity: 420
Merit: 262


View Profile
January 09, 2016, 04:22:16 PM
Last edit: January 09, 2016, 04:41:47 PM by TPTB_need_war
 #66

[...]
Also it can also be possible that the smartest minority forks away from the dumb masses and any malfeasance they might be doing on destroying permissionless commerce. For example, supporting Lightning Networks is dumb as shit if you want permissionless commerce because it can only work reasonably smoothly if run by an oligarchy of corporate providers. If the economics doesn't always drive the same failure again after forking away from the dumb masses, then perhaps my thread from 2013 No Money Exists Without the Majority can be proven incorrect.

So I am contemplating that the real threat to permissionless commerce are fundamental problems with Satoshi's design that would make forking away from it mathematically implausible:

[...]that doesn't really solve the fundamental problems such as:


For example, imagine that a million users are earning a good income doing business based in permissionless commerce the government would like to eliminate (such as the Big Pharma corruption I exampled upthread), and so they fork away from the masses's block chain when the governments is able to use their control of Coinbase et al (imagine a world government level of cooperation).

So then everyone can spend their coins on both forks. If there is this genuine Coasian barrier that forces the existence of a second fork, then the government can play Whack-A-Mole until they realize that the masses are catching on to the opportunities of freedom and individual empowerment.

The point being that doing such a fork would be nearly infeasible in Satoshi's design because all those who move in mass action are not going to be supplying PoW mining in Satoshi's design (thus the new fork can be easily attacked). The economics are not conducive in Satoshi's design for maintaining the fight for permissionless commerce.

This is the sort of ideal I want to work on! If I can be convinced I am not working on bullshit, I will be more inspired.



I think miners insterests are more aligned with users interests than you think. Afterall if the currency they are mining becomes worthless their operation becomes worthless as well. So anything that hurts the value of their currency is neither in the interest of the miners nore in the interest of users. Of course there are other subjects where their interests do not align.

The professional miners' are aligned to paying back the loans they incurred to buy mining farms. Frankly I think your post is delusional. Get a grip on economics. Usury (debt) enables the banksters to take entire control of the economics of mining and charge the costs to the collective.

This is the fairytale lies crap that leads so many of us to be ideological fools. I want to kill this. I am so tired of these lies.

I hope you realize that the per BTC costs of some of the mining farms running off 2 - 4 cent electricity in WA State, USA, are probably sub-$50 per BTC.

And by aligning with government edicts and takeover which the dumb masses (and socialism) will be on board with, they are not shooting their own foot, rather maximizing the sustainability of their income source.

Sorry if I am so forceful, but I have heard these sort of rationalizations for the past 3 years and I think it is time we stop being delusional, don't you?

GingerAle
Legendary
*
Offline Offline

Activity: 1260
Merit: 1008


View Profile WWW
January 09, 2016, 04:41:33 PM
 #67

indeed, it seems that the flaws presented above assume there is inevitable entropy towards an unregulated tragedy of the commons. I would argue, however, that due to the inherent value of the decentralized system (i.e., if it loses that property it loses that value), that those creating the system would modify their behavior. Indeed, this has occurred with that one pool backing off of 50% nethash, and in general this is the concept that the economic incentive of maintaining the value of the system functions as the regulating mechanism of the commons. (granted, the network functioning in this fashion requires an awareness of the decentralized concept, so your argument of the dumb masses sort of wrecks this "solution". I mean, how would this manifest? If mining centralization caused a significant drop in value, who would actually connect the dots, and what would be done to fix it? Unknowns.)

Granted, this is not a pure solution - as in, it relies on human behavior. But ultimately these all rely on human behavior at some point. Cryptocurrencies have created an impressive gap between human behavior and the distribution, creation, and transaction of money - functions of value transfer systems that have heretofore been intricately coupled to human behavior. I would argue that it is very difficult, if not impossible, to create a gap between human behavior and the operation of the infrastructure that makes it possible.

Ultimately someone needs to turn it on and plug it in (and learn a lot of linux).

Finally, this isn't to discourage your efforts to improve the technology.

Quote
The professional miners' are aligned to paying back the loans they incurred to buy mining farms. Frankly I think your post is delusional. Get a grip on economics. Usury (debt) enables the banksters to take entire control of the economics of mining and charge the costs to the collective.

I think the current manifestation of professional mining will evolve as bitcoin shifts to lower block rewards. We really have no idea what the next halving will bring, nor the next one. I wouldn't be surprised if a majority of net hash gradually shifts back to the enthusiasts from the mining centers. The big corporate mining farms will shut down, the manufactures running these farms will liquidate their hardware, the hardware will flood the market and be distributed extensively.

< Track your bitcoins! > < Track them again! > <<< [url=https://www.reddit.com/r/Bitcoin/comments/1qomqt/what_a_landmark_legal_case_from_mid1700s_scotland/] What is fungibility? >>> 46P88uZ4edEgsk7iKQUGu2FUDYcdHm2HtLFiGLp1inG4e4f9PTb4mbHWYWFZGYUeQidJ8hFym2WUmWc p34X8HHmFS2LXJkf <<< Free subdomains at moneroworld.com!! >>> <<< If you don't want to run your own node, point your wallet to node.moneroworld.com, and get connected to a random node! @@@@ FUCK ALL THE PROFITEERS! PROOF OF WORK OR ITS A SCAM !!! @@@@
BitcoinFX
Legendary
*
Offline Offline

Activity: 2646
Merit: 1720


https://youtu.be/DsAVx0u9Cw4 ... Dr. WHO < KLF


View Profile WWW
January 09, 2016, 04:57:15 PM
 #68

"DECENTRALIZED crypto currency (including Bitcoin) is a delusion (any solutions?)"

Crypto Bullion (CBX) now has PoSP (Proof-of-Stake Participation) which can equal Increased Decentralized Network Participation.

Also looking at a combined Proof-of-Value Network to equal Independent Decentralized Price Discovery through Participation.

A "Shield and Spear Paradox" of "Digital proof of ownership" - https://bitcointalk.org/index.php?topic=951753.msg11901786#msg11901786

Arguably, against your opening gambit, such a 'solution' helps somewhat against centralization, although the (perceived) issue of 'scalability' perhaps remains.

Much work to be done still from a technical standpoint, although I thought that you might find this interesting.

Great thread BTW OP.

"Bitcoin OG" 1JXFXUBGs2ZtEDAQMdZ3tkCKo38nT2XSEp | Bitcoin logo™ Enforcer? | Bitcoin is BTC | CSW is NOT Satoshi Nakamoto | I Mine BTC, LTC, ZEC, XMR and GAP | BTC on Tor addnodes Project | Media enquiries : Wu Ming | Enjoy The Money Machine | "You cannot compete with Open Source" and "Cryptography != Banana" | BSV and BCH are COUNTERFEIT.
bhokor
Legendary
*
Offline Offline

Activity: 966
Merit: 1000


View Profile
January 09, 2016, 05:05:48 PM
 #69

Perhaps the big problem we have to face is about the initial distribution, i am agree with superiority of pos system above the pow, but how can you make a fair initial distribution for avoid the whales to have a big portion of total coins and make most of stake blocks and get richer meanwhile small stakeholder get poor ...today i have not a answer to it
TPTB_need_war (OP)
Sr. Member
****
Offline Offline

Activity: 420
Merit: 262


View Profile
January 09, 2016, 05:20:46 PM
Last edit: January 09, 2016, 05:46:00 PM by TPTB_need_war
 #70

indeed, it seems that the flaws presented above assume there is inevitable entropy towards an unregulated tragedy of the commons. I would argue, however, that due to the inherent value of the decentralized system (i.e., if it loses that property it loses that value), that those creating the system would modify their behavior. Indeed, this has occurred with that one pool backing off of 50% nethash, and in general this is the concept that the economic incentive of maintaining the value of the system functions as the regulating mechanism of the commons.

Note afaik it is not clear if Ghash.io didn't just break itself into multiple Sybil pools. The insoluble, inviolable mathematical fundamental remains that pools are concentrated control. And the political factions of Bitcoin rise up to keep the decentralization delusion alive so that we can delude ourselves more.

It is only necessary to maintain the illusion of decentralization coupled with massive gold rush fever every 2 years or so with price bubbles, in order to keep alive this delusional concept that miners are aligned to permissionless commerce.

Miners are aligned to usury, government, and fulfilling Bitcoin's role of "mining the investors" and fooling us all into wasting our scarce time on a flawed concept, when we should be trying to find a real solution for permissionless commerce before it is too late.

Don't you see how rapidly the world governance is coming into existence now? We have the UK now pushing to eliminate all encryption. We have China forcing everyone to join a social network for credit rating which forces people to banish those who do anything the Communist Party deems objectionable.

The miners can not fight this global trajectory and why should they? They piggyback on the trend of society and take their pay for being good servants to their bankster masters.

Afaics, the only paradigm that could fight this trajectory ('entropy' as you say) is a grassroots paradigm that disrupts the fundamental economic flaws in Bitcoin.

(granted, the network functioning in this fashion requires an awareness of the decentralized concept, so your argument of the dumb masses sort of wrecks this "solution". I mean, how would this manifest? If mining centralization caused a significant drop in value, who would actually connect the dots, and what would be done to fix it? Unknowns.)

Yep. But even the claimed political action of current Bitcoin community to reduce pool concentration is more of a masturbation to sustain our delusion. We didn't really accomplish anything in terms of the fundamental flaws and the economics that insure Bitcoin will end up centralized. I will explain below why your erroneous optimism is a delusion.

Hey due to the way you write I can detect you are smart, so this is not a personal attack on you. I have also allowed myself to be deluded at many times in my life. Let's try to be more frank and objective. We are men. That is our role. Don't let our emotional dreams impact our analysis. What is the factual truth here?

Granted, this is not a pure solution - as in, it relies on human behavior. But ultimately these all rely on human behavior at some point.

I will instead claim the outcome always relies on economics. Human behavior is actually a derived effect from economics. Economics of resources determines how human behavior adapts.

Cryptocurrencies have created an impressive gap between human behavior and the distribution, creation, and transaction of money - functions of value transfer systems that have heretofore been intricately coupled to human behavior. I would argue that it is very difficult, if not impossible, to create a gap between human behavior and the operation of the infrastructure that makes it possible.

It is the economics of how people derive their incomes and needs, that drives human behavior.

To get the sort of human behavior we want, then the humans need to find that permissionless commerce is buttering their bread but socialism is not. Refer to my prior post where I pointed out that if forking can viable, and masses discover those who are in permissionless commerce are earning more income than those in socialism, then suddenly they stop being dumb as shit. Animals are dumb as shit when they are fat and have all their needs met. I was pointing out to my gf and her sister how they have almost entirely forgotten how to carry a pail of water or produce anything on a farm, since they been living with me they can just play on facebook all day.

Ultimately someone needs to turn it on and plug it in (and learn a lot of linux).

Mining is not at all accessible to the masses, but that is a detail that can be addressed with web browser clients. The economics are the real fundamental.

Finally, this isn't to discourage your efforts to improve the technology.

Thanks. Well I am only going to continue if there can be a genuine significant paradigm shift improvement over what we currently have with Bitcoin. I am not into trying to fool anyone or hype something. I want a coin I can go promote to permissionless commerce and know all my marketing efforts won't be wasted when it breaks.

I am interested in the real fundamentals.

There are some very smart developers around here. They just need the right direction. But I must fight against the concept that Bitcoin is any where near good enough. (and for many reasons, not just permissionless End-to-End Principle failure, also include that instant transactions via Lightning Networks will hand the masses to the corporate oligarchy and other insoluble flaws)

Quote
The professional miners' are aligned to paying back the loans they incurred to buy mining farms. Frankly I think your post is delusional. Get a grip on economics. Usury (debt) enables the banksters to take entire control of the economics of mining and charge the costs to the collective.

I think the current manifestation of professional mining will evolve as bitcoin shifts to lower block rewards. We really have no idea what the next halving will bring, nor the next one. I wouldn't be surprised if a majority of net hash gradually shifts back to the enthusiasts from the mining centers. The big corporate mining farms will shut down, the manufactures running these farms will liquidate their hardware, the hardware will flood the market and be distributed extensively.

Back to Economics 101. The marginal producers are the first to go. The block halving will hand a greater percentage of the hash rate to the hydropower mining farms (and Larry Summers' 21 Inc) whose costs are probably below $50 per BTC. Bitcoin is designed to slowly transition to corporate control. Even Satoshi admitted that.

And those who think riding that trend is in their benefit, my thinking is they don't really have good foresight of where this shit is going to end up real bad for humanity real fast. We are talking about years, not decades.

And most BTC investors will end up losing, not gaining. The banksters are cleverly mining all of us via their funding of the mining farms. We are just stupid cows.

Jetboy
Newbie
*
Offline Offline

Activity: 9
Merit: 0


View Profile
January 09, 2016, 05:28:11 PM
 #71

Perhaps the big problem we have to face is about the initial distribution, i am agree with superiority of pos system above the pow, but how can you make a fair initial distribution for avoid the whales to have a big portion of total coins and make most of stake blocks and get richer meanwhile small stakeholder get poor ...today i have not a answer to it

Initial distribution doesn't matter. We know the outcome of the longest running PoS system ever: Capitalism's 1%.

I'm in this 1%, not complaining for myself. Just for the other 99 Smiley

Edit: OK, maybe 2% Smiley
Fuserleer
Legendary
*
Offline Offline

Activity: 1050
Merit: 1016



View Profile WWW
January 09, 2016, 05:40:27 PM
 #72

I think ultimately you are perhaps concentrating on the issue of 2 or more partitions existing for an extended period of time.

You must be referring to monsterer's comments. I was always emphasizing that 2 or more temporary partitions can be tolerated if there is a resolution mechanism.

I was referring to you both.

No temporary partitions can be tolerated at all if the resolution of said partitions is the total destruction of one partition or another.  This is the only resolution method possible if the data structure is block based with POW or POS.

If you think otherwise, explain how two blocks secured with POW (or POS) could be merged between two block chains without loss of data?  You don't need details on my, or anyone's protocols to explain how this is so.

Temporary partitions can be merged if they don't contain conflicting double-spends. The advantage of creating temporary partitions in this context (what I contemplated in my design) is it afaics can both enable a form of instant transactions and also it can radically reduce the data that must be propagated as a transient spike on block announcement, thus solving the propagation delay which drives orphan rate which is one of the main issues with increasing the block size in Bitcoin and other Satoshi coins such as Monero. Note I didn't write that the temporary partitions have to use PoW or PoS; only the global resolution mechanism does.

Lets rewind a bit and look at whats really going on under Bitcoins hood.

Natural network partitions arise in BTC from 1 of 4 events happening:

1.  A node/nodes accept a block that has transactions which are double-spending an output present in another block
2.  A miner produces a block that conflicts with a block on the same chain height
3.  Network connectivity separates 2 parts of the network
4.  A miner has control of 51% or more

All 4 of these create a P inconsistency, and so the LCR (longest chain rule) kicks into action to resolve them.  

In the case of 1, miners can filter these against historic outputs and just reject the transaction.  If multiple transactions are presented in quick succession that spend the same output, miners pick one to include in a block, or they could reject all of them.  On the receipt of a valid block, the remaining double-spend transactions that are not in a block get dumped.  If a block with a higher POW then turns up, all nodes switch to that block, which may or may not include a different transaction of the double-spend set.

In the case of 2, this happens ALL the time.  Orphans cause temporary partitions in the network, but the duration between them is short enough that it doesn't cause any inconvenience.  Worst case you have to wait a little longer for your transaction to be included in the next block if the accepted block which negates the orphan block doesn't have yours in it.

In the case of 3, if the separation duration is short, see 2.  If its long and sustained, 1 of the partitions will have to be destroyed and undo any actions performed, legal or otherwise causing disruption and inconvenience.

In the case of 4, well, its just a disaster. Blocks can be replaced all the way back to the last checkpoint potentially and all transactions from that point could be destroyed.

There can also be local partition inconsistencies too, where a node has gone offline, and shortly after a block or blocks have been accepted by the network that invalidate one or more of the most recent blocks it has.  Once that node comes back online it syncs to the rest of the network and does not fulfill CAP at all.  The invalid blocks that is has prior to coming back online are destroyed and replaced.  

You could argue that this node creates a network level partition issue also to some degree, as it has blocks that the network doesn't, but the network will already have resolved this P issue in the past as it would have triggered an orphan event, thus I deem it to be a local P issue.

So whats my point?

In the cases of 1 or 2 there does not need to be any merging of partitions.  Bitcoin handles these events perfectly well with blocks, POW and LCR with minimal inconvenience to honest participants providing that the partition duration of the network is short (a few blocks).  

In the case of 3, which is by far the most difficult to resolve, the partition tolerance reduces proportional to the duration of the partitioned state, and becomes more difficult to resolve without consequence in any system, as there may be conflicting actions which diverge the resulting state of all partitions further away from each other.  These partition events will always become unsolvable at some point, no matter what the data structure, consensus mechanisms or other exotic methods employed, as it is an eventuality that one or more conflicts will occur.

The fact is that DAGs/Tangles and our channels have a better partition resolution performance in the case of event 3 as the data structures are more granular.  An inconsistency in P doesn't affect the entire data set, only a portion of it, thus it is resolvable without issue more frequently as the chances of a conflict preventing resolution is reduced.

Now, you haven't provided any detail on exactly how you imagine a data structure that uses blocks that could merge non-conflicting partitions, let alone conflicting ones.  In fact I see no workable method to do this with blocks that may contain transactions across the entire domain.  Furthermore, who creates these "merge" blocks and what would be the consensus mechanism to agree on them?  In the event of a conflict, how do you imagine that would be resolved?

When it comes to partition management and resolution where block based data structures are employed, Satoshi has already given you the best they can do in the simplest form.  Trying to do it better with blocks is IMO a goose chase and you'll get nowhere other than an extremely complicated and fragile system.

As for your (and Iota's) idea of using a different global resolution method, I maintain that no design will be sound if it doesn't use blocks with PoW (or the inferior PoS). The reason is because there is no way to gain Byzantine consistency on double-spends. I have thought about this in great detail for months and years. I will be very stunned if you or anyone else has found an exception to this rule. It seems to be fundamental to the Byzantine Generals Problem. As I explained upthread my understanding for Iota is that if competing cliques with less than 50% of the total hash rate each, for what ever reason decide not to confirm each other's chains, then there is no mechanism in Iota's DAG without blocks to force a consensus and thus the user of the currency has to contend with forks and multiple spends on multiple partitions. Although this may not occur in the early stages for Iota, if it really gains any significant value (not just insiders buying from themselves to pump the illusion of a large market cap and trade volume) that is when it will be tested conceptually. Satoshi's PoW design in Bitcoin (Monero, etc) has already passed this crucial test but PoS and other block chain consensus designs not yet. I suspect for eMunie what you are attempting to design is some resolution based on propagation and different powers for different types of nodes in the network, and I am confident I will be able to point out to you how this is unsound once you release the details. If you want to waste your effort in this direction, who am I to discourage you. I personally don't want to waste any more effort on pie-in-the-sky failure delusion. I can't really nail down with 100% certainty if your design is a delusion until I see all the details, but I strongly suspect it is. I don't say this to be unfriendly with you. I am concerned that we are wasting a lot of effort and resources. I am trying to be very frank with myself as well.

Apologies for misspelling your username upthread.

Note I have proposed that including PoW with each transaction may be a solution to the flaws in Satoshi's design which causes it to drive centralization, government takeover, and oligarchy. But I need to spend some more time going over the details of that idea. Note apparently Iota may be implementing some variant of that idea, but as I explained upthread, I don't think it can be Byzantine fault tolerant on Consistency without blocks.

Ive said this before and been laughed out of court, but I'm going to say it again.

Bitcoin is not Byzantine fault tolerant for 2 reasons:

1.  The nodes in the network are not agreeing on the data set, they are agreeing on the expenditure of a resource
2.  Due to #1 someone with enough resource can undo and rewrite history

In a true Byzantine fault tolerant system, the data set is append only and the rules used to determine the inclusion of new data rely totally on the existing data.

Bitcoin, or any crypto for that matter, does not consider the existing and historical data set for conflict resolution of any kind, and this is an absolute critical failure.

To protect against this, Bitcoin has checkpoints to guard against the possible event that someone, at sometime could amass 51% or more of the hash rate (or less if you consider selfish mining and other tricks) and undo history.  This is a fallacy though, as now we are all reliant on the developers that have permission to make code commits to set the checkpoints correctly, and not insert one that would point to a hidden block chain which  has been quietly running in the background by them or some other malicious party who has influence over the developers.

Which leads to the frightening conclusion that no crypto-currency released so far, is fully Byzantine tolerant nor is one in development other than eMunie.

eMunie meets the requirements of a truly Byzantine fault tolerant system.  It is append only, and history can absolutely NOT be changed.  Historical data is considered in conflict resolution, and is also used to determine who (among other things) is eligible in the future to vote on which data set is valid in conflict situations.

Radix - DLT x.0

Web - http://radix.global  Forums - http://forum.radix.global Twitter - @radixdlt
TPTB_need_war (OP)
Sr. Member
****
Offline Offline

Activity: 420
Merit: 262


View Profile
January 09, 2016, 05:51:50 PM
 #73

4.  A miner has control of 51% or more

All 4 of these create a P inconsistency, and so the LCR (longest chain rule) kicks into action to resolve them.

Seems that is a Consistency (as you said the LCR can rewrite all the blocks under 51% control) and Access violation (and the 51% attacker can't censor the block solutions from the 49% and censor any transactions), not just a failure of Partition tolerance. But it can also be interpreted as a failure due to not being able to tolerate a 49% partition and thus the longest chain rule kicks in.

I am still reading the remainder of your post.

However note that in the following linked thread:

my thread from 2013 No Money Exists Without the Majority can be proven incorrect.

I pointed out that the 51% rule is fundamental to any consensus system, thus you will not avoid this in your design either:

We technologists have looked deeply for an alternative to Bitcoin, that would eliminate its 51% attack vulnerability, and have concluded with the 51% Rule of Decentralized Agreement, which implies that no decentralized digital currency will ever be able to (sustain an) escape from the desires of the majority of society.

Fuserleer
Legendary
*
Offline Offline

Activity: 1050
Merit: 1016



View Profile WWW
January 09, 2016, 06:05:50 PM
 #74

4.  A miner has control of 51% or more

All 4 of these create a P inconsistency, and so the LCR (longest chain rule) kicks into action to resolve them.

Seems that is a Consistency (as you said the LCR can rewrite all the blocks under 51% control) and Access violation (and the 51% attacker can't censor the block solutions from the 49% and censor any transactions), not just a failure of Partition tolerance. But it can also be interpreted as a failure due to not being able to tolerate a 49% partition and thus the longest chain rule kicks in.

Indeed, but my focus was on P alone (and also not to confuse other readers).


I am still reading the remainder of your post.

However note that in the following linked thread:

my thread from 2013 No Money Exists Without the Majority can be proven incorrect.

I pointed out that the 51% rule is fundamental to any consensus system, thus you will not avoid this in your design either:

We technologists have looked deeply for an alternative to Bitcoin, that would eliminate its 51% attack vulnerability, and have concluded with the 51% Rule of Decentralized Agreement, which implies that no decentralized digital currency will ever be able to (sustain an) escape from the desires of the majority of society.

I'm not disputing the 51% rule, no system can eliminate it, ever!  However the consequences of it occurring in Bitcoin and other cryptos is truly disastrous due to the reasons I posted.

The best case scenario any system can hope for is that the actor with 51% majority can influence future events only, not the past!  Because at least then, in the event of a complete system failure, you still have a true historical record of fact which can be trusted up to the point of failure.

Radix - DLT x.0

Web - http://radix.global  Forums - http://forum.radix.global Twitter - @radixdlt
TPTB_need_war (OP)
Sr. Member
****
Offline Offline

Activity: 420
Merit: 262


View Profile
January 09, 2016, 06:14:55 PM
 #75

3.  Network connectivity separates 2 parts of the network

[...]

In the case of 3, if the separation duration is short, see 2.  If its long and sustained, 1 of the partitions will have to be destroyed and undo any actions performed, legal or otherwise causing disruption and inconvenience.esolution, and is also used to determine who (among other things) is eligible in the future to vote on which data set is valid in conflict situations.

Only the shortest chain needs to be destroyed (which is devastating to those who were already paid on that chain), or both forks can continue operating and everyone can spend their coins on both forks (so no one is harmed). Instant global 100% inflation. No big deal since everyone is debased the same percentage.

Forks are not so devastating if they only happen due to rare unavoidable reasons that can't be created to anyone's advantage (e.g. once every 20 years), and not just a frequent occurrence which would lead to chaos and destruction of crypto currency.

monsterer
Legendary
*
Offline Offline

Activity: 1008
Merit: 1002


View Profile
January 09, 2016, 06:17:31 PM
 #76

1.  The nodes in the network are not agreeing on the data set, they are agreeing on the expenditure of a resource
2.  Due to #1 someone with enough resource can undo and rewrite history

In a true Byzantine fault tolerant system, the data set is append only and the rules used to determine the inclusion of new data rely totally on the existing data.

You are going to have trouble with your definitions of 'new' and 'existing' in a distributed p2p system. This is why we have POW in the first place, because the concept of time cannot be used to categorise these.

Quote
eMunie meets the requirements of a truly Byzantine fault tolerant system.  It is append only, and history can absolutely NOT be changed.  Historical data is considered in conflict resolution, and is also used to determine who (among other things) is eligible in the future to vote on which data set is valid in conflict situations.

I highly doubt this is true. I'd love to hear how you think you've solved it.
TPTB_need_war (OP)
Sr. Member
****
Offline Offline

Activity: 420
Merit: 262


View Profile
January 09, 2016, 06:21:00 PM
Last edit: January 09, 2016, 06:35:42 PM by TPTB_need_war
 #77

In the case of 4, well, its just a disaster. Blocks can be replaced all the way back to the last checkpoint potentially and all transactions from that point could be destroyed.

2.  Due to #1 someone with enough resource can undo and rewrite history

You aren't capturing the realistic effect of a 51% attack. Society is not going to allow all historic blocks to be replaced. Politically impossible. Instead the viable attack is insidiously changing the protocol going forward, such as censoring transactions which violate some government edict, e.g. forcing every transaction to be stamped with its government KYC identification number (a la 666).

Fuserleer
Legendary
*
Offline Offline

Activity: 1050
Merit: 1016



View Profile WWW
January 09, 2016, 06:30:50 PM
 #78

1.  The nodes in the network are not agreeing on the data set, they are agreeing on the expenditure of a resource
2.  Due to #1 someone with enough resource can undo and rewrite history

In a true Byzantine fault tolerant system, the data set is append only and the rules used to determine the inclusion of new data rely totally on the existing data.

You are going to have trouble with your definitions of 'new' and 'existing' in a distributed p2p system. This is why we have POW in the first place, because the concept of time cannot be used to categorise these.

Quote
eMunie meets the requirements of a truly Byzantine fault tolerant system.  It is append only, and history can absolutely NOT be changed.  Historical data is considered in conflict resolution, and is also used to determine who (among other things) is eligible in the future to vote on which data set is valid in conflict situations.

I highly doubt this is true. I'd love to hear how you think you've solved it.

I'll come back to this later as I'll have to compress core elements of a 40+ page unfinished white paper into a forum post.  That will take some time to do.

Radix - DLT x.0

Web - http://radix.global  Forums - http://forum.radix.global Twitter - @radixdlt
Fuserleer
Legendary
*
Offline Offline

Activity: 1050
Merit: 1016



View Profile WWW
January 09, 2016, 06:33:11 PM
 #79

In the case of 4, well, its just a disaster. Blocks can be replaced all the way back to the last checkpoint potentially and all transactions from that point could be destroyed.

You aren't capturing the realistic effect of a 51% attack. Society is not going to allow all historic blocks to be replaced. Politically impossible. Instead the viable attack is insidiously changing the protocol going forward, such as censoring transactions which violate some government edict, e.g. forcing every transaction to be stamped with its government KYC identification number (a la 666).

In any event its disastrous due to the agreement being based on resource expenditure and not the data set.

The 51% attack is allowed to go unchecked = centralized
Reliance on developer inserted checkpoints = centralized
Government intervention = centralized


Radix - DLT x.0

Web - http://radix.global  Forums - http://forum.radix.global Twitter - @radixdlt
monsterer
Legendary
*
Offline Offline

Activity: 1008
Merit: 1002


View Profile
January 09, 2016, 06:37:02 PM
 #80

In any event its disastrous due to the agreement being based on resource expenditure and not the data set.

Resource expenditure is the only sybil resistant ordering yet invented. If you've found another one, let's hear it Smiley
Pages: « 1 2 3 [4] 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 41 42 43 44 45 46 47 48 49 50 51 52 53 54 ... 64 »
  Print  
 
Jump to:  

Powered by MySQL Powered by PHP Powered by SMF 1.1.19 | SMF © 2006-2009, Simple Machines Valid XHTML 1.0! Valid CSS!