Thinking about the growth problem, I was contemplating solutions that might be feasible. I began thinking about how we could evenly and fairly distribute hash power so that everyone is in a sub-p2pool that would benefit both them, and the bitcoin network at large. I imagine a system where the a miner's geolocation was determined, either using geoip services, or allowing the miner to specify their location, and then using that data to connect to others in the same graticule (1 degree x 1 degree area on the globe). If that graticule does not provide enough hashing power to produce blocks on a desired basis, then that subpool will connect with neighboring graticules. Each subpool is represented in the hash chain by a hash of all the graticules that the subpool serves. Subpools would have to determine if they should reconfigure themselves on a certain timescale to redistribute hashing power as needed. I know it sounds complicated, but I really think it would be an interesting solution to a unique problem.
I have two questions for you:
1- WHEN the P2Pool difficulty will be bad for small miners? When we reaches 1THash, 2THash, 4THash?!
2- This reallocation to sob-pools can be done automatically, right?
Cheers,
Thiago
Interesting, the reduction in variance caused by pools is in fact a problem for P2Pool due to the amount of network data to deal with a pseudo-chain ...
P2Pools solution is already to increase the variance (block difficulty much > 1)
But suggesting to reduce the size of the actual pools themselves makes P2Pool sound like it's going to end up only being good for big hash rate miners.
Having to increase the variance (both ways) to solve the problem sounds bad IMO ...