Proposal to reduce mining power bill [combined summary]

• Proposal to reduce mining power bill Natanael 2018-01-18 16:25:16+00:00
• Proposal to reduce mining power bill Damian Williamson 2018-01-18 08:24:40+00:00
• Proposal to reduce mining power bill Eric Voskuil 2018-01-18 05:22:47+00:00
• Proposal to reduce mining power bill Enrique Arizón Benito 2018-01-17 22:34:11+00:00
• Proposal to reduce mining power bill nullius 2018-01-16 00:10:38+00:00
• Proposal to reduce mining power bill Enrique Arizón Benito 2018-01-15 22:47:54+00:00

Published on: 2018-01-18T16:25:16+00:00

Summary:

The proposal aims to reduce the electricity cost of mining Bitcoin by introducing the concept of "next-coinbase" addresses and an algorithm that restricts the number of miners allowed to mine each block based on the availability of unspent next-coinbase addresses. The algorithm reduces the difficulty/power-bill by 1/2^N for each round, potentially reducing energy costs. However, concerns were raised about its potential impact on transaction-ordering security and susceptibility to attacks by large miners.The proposal suggests using a thread expiration system to prevent large miners from monopolizing the network. It also raises questions about N (the number of bits used to match next-coinbase addresses), how reorgs are handled, and how miner anonymity can be preserved. While the proposal may increase upfront investment for new miners, it could still lead to a reduction in energy costs.In addition to the proposal, there is a quote challenging the notion that "If you're not doing anything wrong, you have nothing to hide," stating that just because one has nothing to hide does not mean they should have to show everything. The context also includes a Segwit nested address and a PGP RSA key.The email thread discusses the proposed algorithm in detail. It introduces the concept of "spent" and "un-spent" next-coinbase addresses and proposes an expiring thread model to address issues with large miners raising the difficulty target. Discussions cover topics such as how N is determined, how reorgs are handled, how difficulty interacts with the algorithm, and how miner anonymity is preserved. Concerns are raised about potential mining centralization and the increased upfront investment required for new miners.Overall, the proposal aims to reduce power consumption in Bitcoin mining while ensuring network security and cooperation among miners. However, further investigation is needed to address the questions and concerns raised before implementation.

Updated on: 2023-08-01T22:28:59.921514+00:00