Published on: 2017-06-22T14:18:40+00:00
Ilya Eriklintsev has proposed a decentralized proof-of-work (PoW) solution to improve the Bitcoin network. By modifying the simple PoW puzzle, user transactions could be hardened with the same PoW algorithm, incentivizing all miners to include that particular transaction in the next block. This would give a handicap to every miner who includes "mined" transactions into the next block, increasing their chances of receiving a block reward. The aim is to prevent continuous DDoS attacks targeting the Bitcoin network.The current system relies on miners deciding which transactions to include in blocks, with the only incentive for users being the transaction fee going directly to the miner. However, this fee market deviates significantly from a free-market premise. Additionally, small value transactions can impair the system's ability to transfer value for everyone. The proposed solution extends the concept of proof-of-work so that including a transaction in a block would reduce the effort requirements for the miner to produce a valid block. This modified proof-of-work concept is mining agnostic and could be implemented as a user-activated soft-fork. By implementing this solution, both miners and users would benefit. Miners would have direct incentives to include important transactions, while users would have increased assurance that their transactions would be included in the next block.Before any protocol change can be considered by the community, an investigation into the probable consequences and stability of the implied economic equilibrium is required. An adequate game theoretical model and numerical simulation results should be obtained and studied before proceeding with any changes. Overall, the proposed solution aims to make the Bitcoin network more secure, decentralized, and resistant to DDoS attacks, benefiting users and miners alike.
Updated on: 2023-08-01T21:11:08.516084+00:00