Topic: A legitimately novel idea for a new crypto. - page 4. (Read 3809 times)

I'd say 100%

for some idea like this :

but use some bullet points , and perhaps even a picture to explain the different PoW .

i'm still not fully understanding .

perhaps just explain the PoW - to me like i'm the tard i am.

Q&A

Yes absolutely. I don't know how you would make a crypto that was totally resistant to all 51% attacks. The idea here is that, with bitcoin each additional dollar you invest in attempting to get that 51% nets you MORE advantage than the dollar before it, with this system each additional dollar you invest nets you LESS advantage than the dollar before it.

The network just waits 4 minutes instead of 2 minutes for its next confirmation working on this one still

there are a couple of issues with this proposal. issues that i have since solved but there is no reason for me to belabor the point since BTCNext beat me to the implementation of this basic idea. so please do go check out the altcoin NXT

I'm SO excited to tell you guys about this idea I've been working on!

This idea was created to address the problem of traditional POW schemes where by investment in ASIC producing infrastructure leads to logarithmic improvements in hashing efficiency rather than more ideal linear improvement. Someone else explained it best so I'm going to quote.


Advantages:

• Higher security with fewer confirmations resulting for better decentralization
• Significantly fewer resources consumed in the maintenance of the network
• Self regulating max block size
• Self regulating money supply, no inflation OR deflation (after some time)
• No incentive for transaction block creators to pool means more decentralization
• Very strong incentive against address reuse equals better anonymity
• no incentive for miners to store up and dump secret POW chains

In common with bitcoin:

• Private key pairs are created to demonstrate ownership of coins in a decentralized ledger
• transactions are signed with private keys and bundled into blocks with inputs that reference previous outputs
• Change in transactions is sent to new addresses created by the sender as one of the outputs on the transaction

All that good old fashioned bitcoin stuff, we love you satoshi.

Overview

• The key insight here is that a reliable stream of unpredictable but consensus verifiable numbers is basically all you need in order to build a secure cryptocurrency.
• In It's most condensed form the idea is basically to separate those who are performing the POW calculations from those who are minting the new transaction blocks.
• Separation of powers eliminates so very many of the principal agent problems that complicate the successful implementation of other more POW centric cryptos.

 

Miners :

• Miners maintain a blockchain exactly like bitcoin except for some key differences
• Miners will not store any transaction information in their blocks.
• The only information that will be contained inside of blocks produced by miners is the address that that miner would like to use to receive compensation for his service.
• Miners will be compensated with 100% of the newly issued currency
• The difficulty of the POW is to be adjusted in a similar fashion to traditional cryptos (traditional cryptos lawl ) so that new mining blocs will come in at a steady rate.

Once you read this whole post, and think all the way through the logic, the implication is that, in effect, miners will be compensated for their service with the value of all of the coins that people accidentally lose. Though it will take some time before everything settles down to that point

Minters:

• Every transaction is a sort of entry into a sort of lottery
• When a miner mints a new mining block everyone looks at all of the public keys that have have been used in the past, and whoever has used the key that is numerically closest to the hash produced by the miner is entitled to mint the newest transaction block
• Transaction block minters are compensated with 100% of the transaction fees
• You may have noticed that this puts a lot of pressure on people to not reuse addresses, this is a very good thing
• If it is too computationally difficult for all nodes to look through all of the private keys used this could be mitigated with a time limit. I.E. all of the keys used in the last year, or month, or week etc...

I know what you are thinking, blockchain bloat, don't stop reading we will get to that.

Block size:

• At the beginning of each transaction we could include one extra bit of data, 1 equals max block size should be increased, 0 equals max block size should be decreased
• Votes would be time weighted with higher weights applied to more recent votes.
• there wouldn't be any more aesthetically preferable option to latch onto in the state of ignorance, so ignorance on one side would ACTUALLY cancel out ignorance on the other, unlike in politics. (one option doesn't have nicer hair than the other)

I don't generally find myself advocating democracy but i think it could work well for max block size adjustment. There would be no real means or motive here for anyone to "game" the system. No one is going to find it in their interest to author a bunch of fake transactions in order to vote over and over, because the marginal value of that transaction space to you would be so much less than someone who wanted to vote AND actually move money. There is no incentive to be selfish either because the chance that your vote would effect the outcome in a way that is quantifiable and positive for you is infinitesimal.

Blockchain size:
With the idea that I'm proposing i really feel that the advantages outweigh the costs, but there is atleast one cost i have found. One of the drawbacks is that the incentives are such that blocks will be 100% full with transactions 100% of the time. In order to help deal with this, and in order to allow the max block size to be as large as is possible the blockchain would only be stored for a limited amount of time. As bad as this sounds its actually the way bitcoins should have always been. It is very dangerous to have people storing a 100year old blockchain. If ecdsa is ever cracked, bitcoin can fork into newer encryption schemes, but there is the potential for people to unlock all of the coins that have been lost throughout history. In the distant future, this could potentially multiply the money supply several times over in a metaphorical heartbeat. The drawback is that you have to move your coins to new addresses every few years. I know its a bummer, but you'll survive i promise .

Issuance:
This part is going to get a lot of my fellow libertarians in a tizzy but please bear with me until i finish the argument. The block reward for miners would never be lowered, it would be a constant amount for ever. This would not lead to endless inflation i promise. You have to remember that each new issuance would represent a smaller rate of inflation of the over all money supply than the previous issuance. So for example the second block doubles the money supply, but the third only increases it by 1/3 and the fourth by only 1/4. This is much less inflationary than a scheme that, for example, increases the money supply at a rate of 1% of outstanding issuance. Furthermore at some point in the future an equilibrium would be reached where the marginal value of a unit of currency would be less than the marginal value of taking the necessary precautions to secure it from loss. In other words, at some point in the future, the amount of currency lost due to carelessness would match almost 1 for 1 the rate of new currency being issued.

The little details:
You may have noticed that i left out a lot of details such as: target block time, block target readjustment interval, hashing algorithm, number of coins per block and denomination. The truth is those things don't really matter that much. With that being said i do have preferences. I think scrypt is probably better than sha256 because it would lead to more homogeneous distribution; I think bitcoin is a little bit slow on its block time, i would like to see 2 maybe 3 minute blocks; I think it re-targets unnecessarily slowly; and I think bitcoin should probably always have been denominated in satoshis.  But again that stuff really Isn't that important, these ideas are much bigger, i think, than faster re-targets.

Conclusion:
Well thats basically it guys. I'm going to post this in a very raw form and continue to edit it into the future based what ever else i think of and what ever feedback i get. Thank you so much to those who stuck with it all the way to the end! If i can get some verification from some bitcoin experts here on the forums that this is in fact feasible and that I have in fact not made any major irreconcilable mistakes, than we can proceed to starting work on a bounty!