Author: Erik Aronesty 2017-04-06 03:11:53
Published on: 2017-04-06T03:11:53+00:00
The discussion on the bitcoin-dev mailing list revolves around the concept of Proof of Work (PoW) and how it can be improved by blocking the usage of ASICBOOST, a technique that allows miners to mine faster and gain an unfair advantage. One proposal suggests using a masked proof of burn to an expanded address that assigns the private key holder the right to mine only in the next Nth block. This would prevent miners from excluding transactions without killing the entire system. However, this approach alone is not sufficient as time spent mining is also a critical factor. Therefore, a masked burn cannot provide proof of time spent, which is necessary for "real PoW." The use of ASICBOOST creates an unfair advantage that could increase miner profits by up to 10x. It also has the unwanted effect of creating an incentive to make blocks smaller, which should be engineered out on principle. In addition to being a legal vulnerability, ASICBOOST also increases the minimum capital requirements for ASIC manufacturers and design businesses, making it harder for new players to enter the market. The discussion concludes with the agreement that there is no benefit to Bitcoin for having ASICBOOST and that it has caused unnecessary political controversy based on a secret advantage.
Updated on: 2023-06-11T23:40:08.728417+00:00