Pages:
Author

Topic: The Extreme Flaws Of Bitcoin - page 4. (Read 4933 times)

legendary
Activity: 966
Merit: 1042
November 29, 2016, 05:49:13 PM
#8
imho the biggest flaw is the fact that satoshi (whoever it might be) could still possess private keys to the 1kk wallet. its a sort of a trojan horse so to speak. we might never find out, but once that wallet moves..

Everyone says that, but what is the wallet address or wallet addresses?

Nodes don't get rewards from Mining
They do get rewards. But the reward is zero. One should do more useful work for more reward.

Bitcoin mining is not ASIC resistant
There is no such thing as asic-resistance.

Lots of altcoins claim to be asic-resistant. I don't know if there is any fact to that (or only stating that the current asics won't be able to mine).
legendary
Activity: 1092
Merit: 1001
November 29, 2016, 05:47:47 PM
#7
It was a basic assumption of satoshi that mining will remain decentralized since he assumed that 1 miner will be 1 node, and everyone will mine on his PC with the CPU.

This is incorrect. Satoshi had this to say on the subject.

Quote
The current system where every user is a network node is not the intended configuration for large scale.  That would be like every Usenet user runs their own NNTP server.  The design supports letting users just be users.  The more burden it is to run a node, the fewer nodes there will be.  Those few nodes will be big server farms.  The rest will be client nodes that only do transactions and don't generate.
(Sauce)

The scenarios are playing out as expected with an end game of a cartel of miners, users with web wallets and the occasional hipster running their own full node.

The idea of economic incentives for full nodes is an attempt for already committed early adopters, to squeeze a few crumbs from the miners' table in the face of the inevitable. In the end, most full nodes will be run by the miners so it is a zero-sum game.

First of all, that quote from Satoshi is predicting the centralization of Mining Pools and Mining Farms
in the future and not the centralization and loss of non-mining nodes. The burden he is referring to is the
difficulty increase in mining, not hardware capabilities. Satoshi does not address the question asked by the OP.

Because his original design was 1 CPU = 1 Vote, and he was blinded by that higher goal, he disregarded the
inevitable separation of the two systems (mining & non-mining nodes) due to different factors and thus failed
to design and account for a corresponding system to "incentive" the "transaction nodes" so to ensure a large
enough network for a truly attack resistant and globally decentralization verification network.

Your answer to the OP is essentially Satoshi designed a decentralized network only as a gimmick and intended to
make a centralized attack prone network within 3 years. Either you are correct and we are attempting to remedy this,
or you are wrong and reading more into Satoshi's words than even he knew at the time.

Your answer to the OP lacks imagination and assumes stagnation.
legendary
Activity: 1202
Merit: 1015
November 29, 2016, 05:31:21 PM
#6
imho the biggest flaw is the fact that satoshi (whoever it might be) could still possess private keys to the 1kk wallet. its a sort of a trojan horse so to speak. we might never find out, but once that wallet moves..
legendary
Activity: 1050
Merit: 1016
November 29, 2016, 05:19:49 PM
#5
It was a basic assumption of satoshi that mining will remain decentralized since he assumed that 1 miner will be 1 node, and everyone will mine on his PC with the CPU.

This is incorrect. Satoshi had this to say on the subject.

Quote
The current system where every user is a network node is not the intended configuration for large scale.  That would be like every Usenet user runs their own NNTP server.  The design supports letting users just be users.  The more burden it is to run a node, the fewer nodes there will be.  Those few nodes will be big server farms.  The rest will be client nodes that only do transactions and don't generate.
(Sauce)

The scenarios are playing out as expected with an end game of a cartel of miners, users with web wallets and the occasional hipster running their own full node.

The idea of economic incentives for full nodes is an attempt for already committed early adopters, to squeeze a few crumbs from the miners' table in the face of the inevitable. In the end, most full nodes will be run by the miners so it is a zero-sum game.

And that is where I disagree with Satoshi...if that really was his intention, then he designed Bitcoin to centralize over time.

I've been working on a centralization resistant consensus algorithm for around 3 years now and its ready for prime time.   It gets rid of the wasteful scourge that is mining, and replaces it with a lightweight, efficient, low barrier to entry, node incentivizing algorithm instead called EVEI.
full member
Activity: 219
Merit: 102
November 29, 2016, 01:57:30 PM
#4
It was a basic assumption of satoshi that mining will remain decentralized since he assumed that 1 miner will be 1 node, and everyone will mine on his PC with the CPU.

This is incorrect. Satoshi had this to say on the subject.

Quote
The current system where every user is a network node is not the intended configuration for large scale.  That would be like every Usenet user runs their own NNTP server.  The design supports letting users just be users.  The more burden it is to run a node, the fewer nodes there will be.  Those few nodes will be big server farms.  The rest will be client nodes that only do transactions and don't generate.
(Sauce)

The scenarios are playing out as expected with an end game of a cartel of miners, users with web wallets and the occasional hipster running their own full node.

The idea of economic incentives for full nodes is an attempt for already committed early adopters, to squeeze a few crumbs from the miners' table in the face of the inevitable. In the end, most full nodes will be run by the miners so it is a zero-sum game.
legendary
Activity: 1260
Merit: 1019
November 29, 2016, 10:40:30 AM
#3
Nodes don't get rewards from Mining
They do get rewards. But the reward is zero. One should do more useful work for more reward.

Bitcoin mining is not ASIC resistant
There is no such thing as asic-resistance.
legendary
Activity: 1932
Merit: 2077
November 29, 2016, 10:15:16 AM
#2
1) Nodes don't get rewards from Mining

This is the biggest flaw that I can imagine. It was a basic assumption of satoshi that mining will remain decentralized since he assumed that 1 miner will be 1 node, and everyone will mine on his PC with the CPU. However the SHA mining alhorithm is not ASIC resistant and when ASICs became widespread, mining was centralized. This is not particularly bad because mining will either way get more efficient.

What is bad is that the nodes are not incentivized, and as mining is centralized. So that only the miners will be nodes in the future and hardly anyone will run a full node. Now because of this we cannot hardfork because the node count will shrink more and more. This really fucked up the entire bitcoin system, how can such fatal flaw not be obvious to satoshi?

If you receive many payment, it's an incentive for you to run a full node. Why should it be free? If you want to be 100% sure about your payment and check yourself for it, why should you be paid by network to do it?  

From http://www.coindesk.com/how-to-save-bitcoins-node-network-from-centralization/ :
Quote
“There are only as many nodes on the Bitcoin network as there is demand to perform independent and trustless validation of transactions.”

Quote
The node count is a function of the demand for trustless transaction validation versus the cost of running a node. As such, I’d posit that node count is also dependent upon the value being stored and transacted by bitcoin users.

While some claim that running a node today is purely altruistic, there are incentives for doing so:

Investment: If you’re highly invested in bitcoin, you may wish to support the network in order to protect that investment.
    
Performance: It is orders of magnitude faster to query a local copy of the blockchain as opposed to querying blockchain data services over the Internet.
    
Permissionlessness and censorship resistance: By receiving and sending transactions from your own node, no one has the power to stop you from doing so.
    
Privacy: If you’re querying other nodes or services about blockchain data, they can use those queries to try to deanonymize you.
    
Trustlessness: Owning a copy of the ledger that you have validated yourself means you don’t have to trust a third party to be honest about the state of the ledger.

Every payment processor/merchant gains advantage from running a full node, that means thousands of node in the world.
hero member
Activity: 854
Merit: 1009
JAYCE DESIGNS - http://bit.ly/1tmgIwK
November 29, 2016, 09:04:57 AM
#1
Upon my analysis and experience in the bitcoin ecosystem, I have discovered the flaws of Bitcoin, and I would like to hear your opinions about it:


1) Nodes don't get rewards from Mining

This is the biggest flaw that I can imagine. It was a basic assumption of satoshi that mining will remain decentralized since he assumed that 1 miner will be 1 node, and everyone will mine on his PC with the CPU. However the SHA mining alhorithm is not ASIC resistant and when ASICs became widespread, mining was centralized. This is not particularly bad because mining will either way get more efficient.

What is bad is that the nodes are not incentivized, and as mining is centralized. So that only the miners will be nodes in the future and hardly anyone will run a full node. Now because of this we cannot hardfork because the node count will shrink more and more. This really fucked up the entire bitcoin system, how can such fatal flaw not be obvious to satoshi?

2) Bitcoin mining is not ASIC resistant

As explained above, because of this mining gets centralized very fast. It will either centralize, but this way its too fast, and it's now in 1 political zone, which threatens bitcoin's existence.




The real problem is if we did as you suggest then users would run their node only for transactions
and as soon as it is broadcasted and within a block, they would just shut down that node.

The real discussion by the OP is about having 24/7 full nodes that help distribute the security and
risk through global decentralization which is encouraged by directly incentivizing the transaction node
users. Miners are doing their jobs 24/7 and not intermittently. Nodes should be doing their jobs 24/7
as well, like guards on distant mountains keeping watch of their territory.

Average joe users do not need to nor should run full nodes, it is beyond their capabilities, but
full nodes should be incentivized in some way to encourage new capable people into the full
node field, so we can get the Bitcoin node network from 5,000 to around 50,000+.


An increase in legitimate 24/7 full nodes distributed worldwide is the goal.





My Solution:
https://bitcointalksearch.org/topic/sybil-resistant-decentralized-consensus-mechanism-1730728

Pages:
Jump to: