Published on: 2023-05-30T13:30:32+00:00
In a Bitcoin development email thread, there is a discussion about the concept of weak blocks and block templates, and how they can improve the efficiency and profitability of miners. Weak blocks are blocks whose headers don't hash to a low enough value to be included on the chain, while block templates are ordered lists of raw transactions that a full node can validate and calculate fees for. The suggestion is to use a Nostr relay to relay block templates and weak blocks, which would make it easier for external services to build the best possible block using advanced algorithms. Additionally, relaying weak blocks through Nostr could compensate for the reduced effectiveness of BIP152 compact block relay caused by custom transactions not seen by typical relay nodes. This would also help with fee estimation and provide insights for those trying to get their transactions included in the next block.The conversation also touches on the idea of encrypting transactions while publishing them as Nostr events, which would allow different clients to display transactions as an external mempool sorted by fee rate without compromising user privacy. However, there are concerns about the authenticity of encrypted transactions and the potential distortion of the mempool view. Incentives for mining pools to include these transactions in their blocks are discussed, particularly if they offer higher fee rates compared to transactions in the normal mempool. NIP4 is proposed as a means to privately coordinate everything between users and pools, with users locking some sats in a 2-of-2 multisig and releasing them to the mining pool upon confirmation. Out-of-band payment is suggested as an option if the fee included in the transaction itself is insufficient, but the question remains whether miners would trust users to actually release the payment after confirmation.Joost Jager introduces an alternative approach for Bitcoin transaction relay called Nostr, which is an open and decentralized network of relays for public and ephemeral messages between pseudonymous entities. With the standards defined in NIP-89, it becomes possible to broadcast arbitrary Bitcoin transaction packages, overcoming limitations in the current P2P relay system. Miners can listen for these broadcasted transaction packages and insert them into their local mempool using the `submitpackage` RPC. This feature serves as an interim solution for package relay until it becomes available through traditional P2P methods. Implementing Nostr as a relay mechanism can help democratize access to miner mempools and introduce more flexibility in the system, potentially boosting its resilience. A prototype of this concept has been created, and a demonstration video is available.Overall, the discussions revolve around improving block relay efficiency, addressing DoS threats, exploring alternative relay mechanisms, and enhancing user privacy and incentives for miners. The proposed ideas like weak blocks, block templates, and Nostr relay show potential in enhancing the Bitcoin network's performance and security while promoting a more inclusive and efficient system for all participants.
Updated on: 2023-08-02T09:31:22.511099+00:00