bitcoin-dev

hashcash-newhash

hashcash-newhash

Original Postby ZmnSCPxj

Posted on: May 25, 2020 07:58 UTC

In a conversation about Bitcoin decentralization and security, the potential obsoletion of ASICs due to a public mathematical breaking of the algorithm is discussed.

The idea of planning an algorithm change is suggested but concerns are raised about how this would impact decentralization. It is noted that executing proof-of-work requires energy, and all algorithms require energy to execute. Even if a technique is found to partially break the hash function, mining will continue as the difficulty adjusts. However, other factors such as the Merkle tree and txids may need changing in the case of even a partial break of the hash function, which would require a hardfork.There is also a discussion about centralization and the cost of power as a major factor influencing decentralized mining. The supply of electricity is expected to dominate compared to the rate of consumption of hardware. The importance of buffers to be resilient against ebbs and flows is highlighted, and the difficulty adjustment system acts as a buffer against transient ebbs and flows of the supply of hashpower. The motivation for decentralization is identified as censorship-resistance, and it is noted that miner decentralization supports this. Ultimately, what protects censorship-resistance is the economics involved, and the mechanism for bringing hashpower to bear against censors already exists through mining fees.Moving on, the context provided is a message from ZmnSCPxj regarding the publication of a proposal on improving Bitcoin privacy through the use of CoinSwap technology. The proposal suggests using CoinSwap as a way to make it harder for blockchain analysis firms to link Bitcoin transactions with particular users, thereby enhancing privacy. ZmnSCPxj acknowledges that there are some drawbacks to this approach, including the need for multiple participants to coordinate CoinSwaps and potential legal issues related to money transmission laws.However, the proposal argues that these concerns can be addressed through careful design and implementation. The message also includes links to relevant resources, including a more detailed write-up of the proposal and a GitHub repository containing code for a prototype implementation of CoinSwap. ZmnSCPxj encourages others to review and critique the proposal, noting that open discussion and collaboration are key to improving Bitcoin's privacy features. Overall, the message highlights the importance of privacy in the Bitcoin ecosystem and proposes a novel solution for enhancing it. By leveraging CoinSwap technology and engaging in collaborative development efforts, ZmnSCPxj hopes to contribute to a more private and secure future for Bitcoin transactions.