Author: Peter Todd 2013-05-11 04:53:42
Published on: 2013-05-11T04:53:42+00:00
The concept of using hashcash with the same proof-of-work (PoW) function as the Bitcoin block hashing algorithm to create hashcash denominated in Bitcoins has been proposed before. However, this would lead to two problems: harming network security and requiring knowledge of revenue miners can gain from transaction fees at a given block height to determine the value of the hashcash. Some modifications are suggested to extend the idea to directly denominate the hashcash in Bitcoins with a small increase in proof size. The fundamental problem is that work needs to be done to make digest D have value V resulting in a proof that can be given to a third party. With P(block hash, target), the expected probability of a valid PoW being found given the work required to create the block hash with the given difficulty target, we can calculate the value of the PoW in terms of expected cost.The proof structure includes a PoW Block Header, Previous Block Headers, Partial Transaction and Merkle Path, and Transaction Output. A pool can safely rent out hashing power to create hashcash of this form on demand without making it possible to rent large amounts of hashing power directly on short notice. Coinbase transaction inputs can replace the announce portion of an announce-commit sacrifice. Additional messaging applications built on top of the Bitcoin P2P network would be useful, and PowPay can provide greater scalability than Bitcoin itself in terms of payments per second. PowPay requires the sender to get someone to mine on their behalf. The exact nature of these relationships will vary. While economic incentives are possible within the existing Bitcoin system, a structural incentive is possible as well. A nonce N is chosen by the party paying for the PoW, such as a pool or PowPay recipient, and H(n) is included in the block header.
Updated on: 2023-06-06T16:42:50.895539+00:00