Author: Ilya Eriklintsev 2017-06-21 09:55:22
Published on: 2017-06-21T09:55:22+00:00
The author proposes a solution to improve the Bitcoin network and make it a better store-of-value for growing cyberspace and cryptoeconomy. The proposal involves modifying the simple proof-of-work puzzle in such a way that user transactions could be hardened with the same proof-of-work algorithm, thus incentivizing all miners to include that particular transaction, making it more secure, decentralized, and DDoS resistant. The document addresses the issue of continuous DDoS attacks targeting the Bitcoin network, reducing the system's primary ability to transfer value. Currently, miners decide which transactions to include in blocks, and the only incentive for a person who wants to transfer bitcoins is setting a transaction fee that goes directly to the miner. However, this fee market deviates significantly from a free-market premise.The proposed solution incentivizes all miners to include a transaction carrying a lot of value in the next block by extending the concept of proof-of-work. This is done by introducing new block validation rules in such a way that including the transaction would reduce effort requirements for the miner to produce a valid block. By doing so, the mechanism will effectively give a handicap to every miner who includes "mined" transaction into the next block, increasing the probability of getting a block reward. This solution makes the Bitcoin network more secure, decentralized, and DDoS resistant, preventing adversaries from impairing the network's ability to transfer value for everyone in the world, irrespective of their financial capability.
Updated on: 2023-05-20T03:07:22.814815+00:00