We need to fix the block withholding attack [combined summary]

• We need to fix the block withholding attack Dave Scotese 2015-12-29 21:51:29+00:00
• We need to fix the block withholding attack Allen Piscitello 2015-12-29 19:25:17+00:00
• We need to fix the block withholding attack Jonathan Toomim 2015-12-29 19:08:16+00:00
• We need to fix the block withholding attack Dave Scotese 2015-12-29 18:59:58+00:00
• We need to fix the block withholding attack Ivan Brightly 2015-12-28 20:26:43+00:00
• We need to fix the block withholding attack Peter Todd 2015-12-28 20:02:21+00:00
• We need to fix the block withholding attack Multipool Admin 2015-12-28 19:35:34+00:00
• We need to fix the block withholding attack Multipool Admin 2015-12-28 19:33:11+00:00
• We need to fix the block withholding attack Emin Gün Sirer 2015-12-28 19:30:14+00:00
• We need to fix the block withholding attack Peter Todd 2015-12-28 19:12:28+00:00
• We need to fix the block withholding attack Emin Gün Sirer 2015-12-27 04:33:25+00:00
• We need to fix the block withholding attack Geir Harald Hansen 2015-12-27 04:10:09+00:00
• We need to fix the block withholding attack Jonathan Toomim 2015-12-26 21:22:36+00:00
• We need to fix the block withholding attack Jorge Timón 2015-12-26 19:34:32+00:00
• We need to fix the block withholding attack Eric Lombrozo 2015-12-26 18:30:04+00:00
• We need to fix the block withholding attack Jorge Timón 2015-12-26 18:01:59+00:00
• We need to fix the block withholding attack Eric Lombrozo 2015-12-26 17:38:33+00:00
• We need to fix the block withholding attack Tier Nolan 2015-12-26 16:09:18+00:00
• We need to fix the block withholding attack Jorge Timón 2015-12-26 15:33:53+00:00
• We need to fix the block withholding attack Eric Lombrozo 2015-12-26 08:26:54+00:00
• We need to fix the block withholding attack Eric Lombrozo 2015-12-26 08:23:38+00:00
• We need to fix the block withholding attack Multipool Admin 2015-12-26 08:12:13+00:00
• We need to fix the block withholding attack Geir Harald Hansen 2015-12-26 00:38:06+00:00
• We need to fix the block withholding attack Jannes Faber 2015-12-25 16:11:18+00:00
• We need to fix the block withholding attack benevolent at cock.li 2015-12-25 12:02:10+00:00
• We need to fix the block withholding attack Jonathan Toomim 2015-12-25 12:00:11+00:00
• We need to fix the block withholding attack Ittay 2015-12-25 11:15:27+00:00
• We need to fix the block withholding attack Jannes Faber 2015-12-21 11:39:40+00:00
• We need to fix the block withholding attack Emin Gün Sirer 2015-12-20 17:00:37+00:00
• We need to fix the block withholding attack Tier Nolan 2015-12-20 15:30:09+00:00
• We need to fix the block withholding attack Peter Todd 2015-12-20 13:28:43+00:00
• We need to fix the block withholding attack Natanael 2015-12-20 12:42:10+00:00
• We need to fix the block withholding attack Tier Nolan 2015-12-20 11:38:34+00:00
• We need to fix the block withholding attack Natanael 2015-12-20 08:30:37+00:00
• We need to fix the block withholding attack Emin Gün Sirer 2015-12-20 07:56:03+00:00
• We need to fix the block withholding attack Chris Priest 2015-12-20 07:39:07+00:00
• We need to fix the block withholding attack Emin Gün Sirer 2015-12-20 05:12:49+00:00
• We need to fix the block withholding attack Peter Todd 2015-12-20 04:44:51+00:00
• We need to fix the block withholding attack jl2012 2015-12-20 04:24:52+00:00
• We need to fix the block withholding attack Chris Priest 2015-12-20 03:47:12+00:00
• We need to fix the block withholding attack Chris Priest 2015-12-20 03:43:59+00:00
• We need to fix the block withholding attack jl2012 2015-12-20 03:40:06+00:00
• We need to fix the block withholding attack Matt Corallo 2015-12-20 03:36:10+00:00
• We need to fix the block withholding attack Chris Priest 2015-12-20 03:34:26+00:00
• We need to fix the block withholding attack jl2012 2015-12-19 20:03:28+00:00
• We need to fix the block withholding attack Bob McElrath 2015-12-19 19:30:45+00:00
• We need to fix the block withholding attack Peter Todd 2015-12-19 18:42:40+00:00

Published on: 2015-12-29T21:51:29+00:00

Summary:

In a discussion among Bitcoin developers, several proposals were made to combat block withholding attacks and address concerns about decentralization and profitability in mining. One suggestion was to provide a bonus to the miner who discovers the block as a countermeasure to block withholding attacks. This would make the attacks more expensive for the attacker without greatly impacting smaller miners. The need for better mechanisms to prevent dishonest behavior in mining pools was emphasized. The profitability difference between large and small miners was identified as a major concern.A debate arose regarding the potential impact of decreasing block rewards on the overall hash rate and security of the Bitcoin network. Some argued that decreasing rewards could lead to a decrease in miner participation and compromise the network's security, while others believed that the market would adjust and the network would remain secure.There were discussions about the possibility of addressing block withholding attacks through soft forks or hard forks. A soft fork involving adding an invisible difficulty was suggested, but it was acknowledged that this approach could result in longer confirmation times, lower throughput, and lower miner revenue. Compensating for these economic shifts would require increasing block rewards and size, which would add complications to the protocol and require app migration efforts.The issue of centralization in Bitcoin mining was also raised. Large mining pools, such as GHash.IO, were mentioned as examples of pools that had approached the 51% threshold, raising concerns about their dominance in mining power. Various proposals were made to prevent centralization, including implementing measures such as a hard cap on mining pool size or incentives for smaller pools.Different solutions to block withholding attacks were discussed, including altering mining protocols to require miners to indicate their identity with a public key included in their blocks. Techniques to detect block withholding attacks were also mentioned, although specific details were not revealed due to concerns about attackers finding ways to avoid detection.During the Scaling Bitcoin conference, pool representatives expressed concerns about block withholding attacks and their potential impact on decentralization. It was noted that pools without anti-privacy KYC measures have little defense against such attacks. P2Pool, often suggested as an alternative to pools, was also found to be susceptible to block withholding and had other vulnerabilities hindering widespread adoption.Several proposals were made for addressing block withholding attacks, including a SPV-visible hardfork. Peter Todd suggested using Luke-Jr's two-stage target mechanism to fix block withholding. However, arguments were presented that block withholding attacks can be used by small pools against larger ones, although practical defenses exist for large pools.The theoretical nature of block withholding attacks was emphasized, as those with the majority of hashpower have not engaged in this behavior. Therefore, addressing block withholding attacks was considered a low priority compared to other matters.A long-term solution to block withholding attacks was proposed at the Scaling Bitcoin conference. The proposal aimed to fundamentally remove the source of contention and fix the design flaw while staying true to the spirit of Bitcoin. It involved adding disincentives for withholding blocks and considering other graph-theoretic quantities in the reward function. Concerns about vulnerabilities and technical issues with P2Pool were raised in relation to testing these ideas.In conclusion, block withholding attacks pose a significant concern for pools, especially those without anti-privacy KYC measures. Several proposals and perspectives were presented to address this issue, including bonuses for miners, altering mining protocols, and implementing SPV-visible hardforks. Practical defenses exist for large pools, but concerns about centralization and profitability remain. The theoretical nature of block withholding attacks and alternative long-term solutions were also discussed.

Updated on: 2023-08-01T17:14:38.131570+00:00