Setting the record straight on Proof-of-Publication

Summary:

In this email thread, the discussion starts with a comparison between client-side validation and SPV (Simplified Payment Verification), where Alex Mizrahi claims that client-side validation is mathematically secure while SPV is economically secure. However, Gareth Williams argues that comparisons with SPV security of sidechains are fallacious because the alternative to a proof-of-publication system reliant on client-side validation is a blockchain, and the question of whether the token used on said blockchain should be two-way-pegged to BTC is completely orthogonal. He says that sidechains give us something unique in return - the ability to innovate without needing to start new artificial scarcity races. The concept of 1-way-pegs is introduced, which allows the creation of new valuable tokens without those tokens being useful for speculation. A pragmatic implementation may wish to make obtaining the token via destruction option unattractive compared to obtaining them through trade by incorporating a time delay into the destruction process to encourage liquidity. The objection of creating new artificial scarcity races while innovating is fundementally a *moralistic* and *regulatory* concern that has no little if any bearing on whether or not the systems created are useful and secure.Regarding the Great Fork of 2013, Gareth Williams says that he hates to think what the outcome would've been on a proof-of-publication system. He explains that transactions can contain a hash of the previous consensus state, thereby creating an indicator of consensus measured in terms of economic stake, and many anti-censorship proposals are to use such state hashes as encryption keys. Peter Todd expresses his disagreement and warns of the dangers of centralisation. He suggests a better way to do upgrades that eliminates the threat of centralized control. Finally, he mentions that all such systems are effectively "mandatory updating" due to the risk of subtle consensus bugs of the type he described above.

Updated on: 2023-06-09T14:43:35.416722+00:00