[HN Gopher] Cryptocurrency mining using integrated photonics
       ___________________________________________________________________
        
       Cryptocurrency mining using integrated photonics
        
       Author : neopba
       Score  : 84 points
       Date   : 2021-10-01 08:10 UTC (14 hours ago)
        
 (HTM) web link (phe.tue.nl)
 (TXT) w3m dump (phe.tue.nl)
        
       | Freskis wrote:
       | [deleted]
        
         | neopba wrote:
         | That's unfortunate. Just FYI here is a related story I posted
         | some time ago https://news.ycombinator.com/item?id=27205918
         | 
         | Peace
        
       | kybernetikos wrote:
       | Public blockchain systems are distributed databases that anyone
       | can submit write transactions to and where you don't need
       | preauthorisation to join the system. In order to avoid the
       | network being taken over by sybil attacks, it's necessary for
       | participation to be based on locking up / committing / consuming
       | something rare. Anything that becomes cheap or easy is not
       | suitable for basing participation on.
       | 
       | So far I know of systems using computational work (PoW),
       | ownership of cryptocurrency (PoS), or storage space as that rare
       | resource. The idea of using photonics to create a low energy
       | 'proof of time' basis is interesting but there would still be
       | difficult economic considerations. If acquiring the photonics is
       | too hard, then you've got a centralised system, if it's too easy
       | then the sybil resistance and environmental impact benefit goes
       | away (because control of the system devolves into 'who can
       | acquire the most hardware' incentivising massive production).
       | 
       | Perhaps surprisingly, improving the cost efficiency of the work
       | done by a traditional PoW blockchain doesn't reduce its energy
       | usage, because the usage is determined by a competitive market
       | place driven by supply & demand, not by a fixed amount of work
       | needing to be done. Increasing the cost efficiency of the
       | calculations just results in the blockchain doing more
       | calculations.
       | 
       | A huge chunk of the cost is in the electricity used, so power
       | efficiency and cost efficiency are very very similar. Ultimately
       | I don't think you can improve matters much by attacking power
       | efficiency of the calculations. You may be able to move the
       | economic balance point between upfront/ongoing costs by requiring
       | more or more expensive hardware, but reducing ongoing electricity
       | usage isn't a clear win if it's produced more waste and power
       | usage during the creation and ultimate disposal of the hardware.
        
         | mistrial9 wrote:
         | > Ultimately I don't think you can improve matters much by
         | attacking power efficiency of the calculations.
         | 
         | citation
        
         | acjohnson55 wrote:
         | One way I've come to think of it is that Sybil resistance comes
         | from having the next block producer chosen by a raffle, with
         | some resource used as the ticket. PoW is an example of the
         | resource being exogenous to the system and PoS is an example of
         | the resource being endogenous.
         | 
         | A problem I see with both is that they are inherently
         | plutocratic, in that the wealthiest participants will have
         | greater economies of scale in the resources they devote to the
         | block production process.
        
           | kybernetikos wrote:
           | This is true, however it's also not an unusual feature -
           | pretty much every capitalist society has the characteristic
           | that those with capital can gain more capital with a minimum
           | of additional work.
           | 
           | Alternatives that don't have that feature to at least some
           | extent would be regarded as very radical, and difficult to
           | implement.
        
             | ordinaryradical wrote:
             | This has already been implemented in at least one other
             | crypto successfully. See: Nano (formerly Raiblocks).
             | 
             | The crypto community, however, seems to have a very narrow
             | focus on reproducing these plutocratic systems and
             | incentives because everyone wants that power for themselves
             | and wants to be first in whatever the Next Big Thing is.
             | Crypto development as a whole seems to be hampered by these
             | incentives and by an excessive focus on the original
             | technologies of Bitcoin as opposed to its original aims.
        
               | shanusmagnus wrote:
               | I don't think it's an excessive focus on BTC technology,
               | so much as that BTC abstracts the core issues to their
               | fundamental essence and forces the tradeoffs on those
               | terms, without obfuscating them. For instance, POW is
               | extremely clear: you make a sacrifice to create blocks /
               | mint transactions. It's almost biblical -- the game
               | theory doesn't work without the sacrifice, and sacrifice
               | is, tautologically, a tradeoff of one precious thing for
               | another. All other crypto projects either want free lunch
               | someplace, or make very different tradeoffs and
               | assumptions.
        
               | meowface wrote:
               | No, I think most people (as in, core developers) just
               | want whatever can actually be relied upon. If there were
               | a silver bullet consensus algorithm that was
               | decentralized and secure and also far less
               | wasteful/plutocratic, everyone would probably switch to
               | it.
               | 
               | The idea that there's an easy, superior solution on the
               | other side's grass and bad motives are just keeping
               | people locked into a bad system is a convenient
               | narrative, but rarely true. I don't know the details
               | about Nano, but my guess is the reason other
               | cryptocurrencies haven't adopted their algorithm is
               | because they don't think it's sufficient, for whatever
               | reason.
        
               | ordinaryradical wrote:
               | Nano/Raiblocks has been around for years, the original
               | developer was also one of the first to work on Bitcoin,
               | apparently, and the network has been live for some years
               | and successfully transacting.
               | 
               | I don't think it's a matter of the technology being
               | unproven or unreliable. There was recently a 22 million
               | dollar transaction that was both feeless and recorded to
               | the network in <5 seconds.
               | 
               | It seems obvious though that to adopt the protocol means
               | sacrificing a plutocratic winner-take-all mining regime
               | and everyone in the crypto space wants to be that winner.
               | 
               | Why go through the trouble of developing a photonic
               | mining system if there's already a viable alternative to
               | PoW/PoS in the real world being used? Why all these
               | outlandish schemes to "green" PoW networks (that never
               | come to fruition) when there's a viable technology
               | transacting at a literal 6 millionth of the cost of a
               | single btc transaction?
               | 
               | At a certain point, you begin to see that a large part of
               | this space is not committed to the aims they espouse but
               | to a kind of delirious financial brinksmanship that
               | yields little in the way of progress but makes small
               | numbers of people very wealthy.
        
               | meowface wrote:
               | I'm sure there are many people who share the mentality
               | you describe, but I don't think it applies to most core
               | developers of cryptocurrency protocols, and such
               | developers also don't make more money the more expensive
               | mining is.
        
               | nybble41 wrote:
               | > Why go through the trouble of developing a photonic
               | mining system if there's already a viable alternative to
               | PoW/PoS in the real world being used?
               | 
               | Nano has some interesting ideas but also some fairly
               | obvious flaws, most notably the fact that there is no
               | built-in economic incentive to run a Representative node
               | and participate in the voting. Running a node is an
               | expensive operation (in CPU time, memory, and bandwidth)
               | and the protocol basically leaves this important function
               | up to individual enthusiasm or goodwill. As a result
               | there are a limited number of active voting nodes making
               | decisions for the network.
               | 
               | The faucet-based initial distribution of Nano (XRB) is
               | also arguably less egalitarian than Bitcoin's PoW-based
               | mining rewards. If you weren't aware of Nano (RaiBlocks)
               | while they were running the faucet then you had no chance
               | to participate in that initial distribution. This is not
               | quite as bad as full pre-mining where _all_ the initial
               | coins go to the developers and other may or may not be
               | able to mine more later at a higher difficulty, but it
               | seems likely that the developers and other early adopters
               | would have received the majority of the output from the
               | XRB faucet, which by design is all the XRB which will
               | ever be produced.
        
               | kybernetikos wrote:
               | From what I know of Nano, I don't believe it would work
               | correctly under situations where it was being attacked.
        
         | wyager wrote:
         | > ownership of cryptocurrency (PoS)
         | 
         | The problem is that PoS commitment isn't binding. You can
         | always stake your money, then if you don't like the outcome,
         | you can just pretend the first stake never happened and do it
         | again. Cf "grinding" attack. PoW is unique in that any
         | _claimed_ commitment corresponds to a _real, physical,
         | irrevertable_ commitment.
         | 
         | > or storage space as that rare resource.
         | 
         | Every storage coin so far has been some sort of DINO scam. The
         | most interesting one is Chia but it's absurdly complicated, and
         | I think that complication might mask some
         | centralization/vulnerability. For example, the reliance on
         | "time lord" nodes strikes me as very questionable.
        
           | lt wrote:
           | What's a DINO scam? Couldn't google anything relevant.
        
             | wyager wrote:
             | DINO stands for "decentralized in name only", which refers
             | to the shockingly common case of a crypto-thing advertising
             | itself as decentralized when in fact it is controlled by a
             | single entity or cartel.
        
         | danvayn wrote:
         | I think widespread institutional adoption of crypto is pretty
         | important in this regard.Operating a photonic miner being hard
         | provides more incentive to be a part of those 'mining' it, as
         | you might expect. So, if it's beyond average user scope but
         | within say .1-1% of a companies budget and could create massive
         | dividends, why shouldn't they invest in this?
         | 
         | It can be a little gross to consider, because no ones like idea
         | of 'the rich getting richer', but that isn't really different
         | from what happens today, anyways. What matters most is that the
         | system has a lot of nodes to work with, and that can still
         | happen here if there's enough adoption in this scenario.
         | 
         | Not to mention that it should be hard to abuse your control in
         | a public blockchain system. Governments could require companies
         | to have an use photonic miner operating license and revoke it
         | if they did something like this, for example. I think its a
         | decent middle ground between centralized and decentralized. And
         | (should?) produce less electric waste overall. I'm not sure, I
         | don't really know much about photonics.
        
           | tsimionescu wrote:
           | Using PoW crypto at all creates massive waste for no
           | productive use. In a world struggling to avoid catastrophic
           | climate changes, it is completely irresponsible, and should
           | be stopped instantly.
           | 
           | Not to mention, crypto currencies are worse than traditional
           | currencies in every way: much more wasteful than the whole
           | global banking system for a tiny tiny tiny fraction of a
           | percentage of the number of transactions, much more
           | centralized in several ways, deflationary, impossible to
           | control if they spiral. There is no reason to keep this
           | charade going.
        
             | RustyConsul wrote:
             | 'Impossible to control'.
             | 
             | Born to a generation that has lost faith in governments,
             | this is why i have crypto.
        
             | Geee wrote:
             | This isn't actually true at all. Climate problems are
             | caused by competition between governments and their pursue
             | for growth, which forces everyone to consume and produce
             | more than is necessary. Under the current economic system,
             | natural catastrophe is inevitable. Bitcoin actually fixes
             | this, because it makes it impossible for governments to
             | enforce growth through money supply manipulation, which
             | they have to do to compete with each other.
        
               | adrianN wrote:
               | The current economic system is compatible with a carbon
               | neutral world. We managed to ban all kinds of destructive
               | things that provide (short-term) economic benefits
               | without changing our economic system.
        
             | tromp wrote:
             | > worse than traditional currencies in every way
             | 
             | Yes, they're worse in many ways, but that is exactly the
             | design decision they made in order to be better in one
             | particular way; to be censorship resistant (and
             | permissionless).
             | 
             | Not all are deflationary; many have a tail emission that
             | makes the supply dis-inflationary.
        
               | tsimionescu wrote:
               | Nothing is censorship resistant against a determined
               | censor. If crypto sees more and more adoption, exchanges
               | and companies accepting it will likely get pushed to
               | implement KYC and AML just as much as banks are.
        
             | incrudible wrote:
             | Proof of work is wasteful in the same sense that having
             | banks is wasteful. Imagine what it takes to operate a
             | banking institution. It's not just electricity. It would be
             | "efficient" to just write the word "bank" on a shack and
             | then have one or two workers "guard" over all the deposits.
             | 
             | Unfortunately, nobody would be willing to use such a bank.
             | Actual banks that people use need to spend a lot of money
             | just on maintaining the charade of being proper custodians.
             | Yet, they can still lose your deposit, in which case they
             | rely on the government to bail them out.
             | 
             | Perhaps proof-of-stake is something that can mostly replace
             | proof-of-work, but the proof is in the pudding.
        
               | tsimionescu wrote:
               | > Actual banks that people use need to spend a lot of
               | money just on maintaining the charade of being proper
               | custodians. Yet, they can still lose your deposit, in
               | which case they rely on the government to bail them out.
               | 
               | The major difference is that, collectively, the world's
               | banks are a decentralized system that processes billions
               | of times more transactions every hour than Bitcoin and
               | other major PoW coins have ever executed, while offering
               | many services which are impossible to offer through
               | Bitcoin - loans, insurance, the ability to recover your
               | money from a fraudulent transaction, and many others.
               | 
               | Replacing this entire centuries old system is something
               | that no one wants - not the left, not the right, nor the
               | vast vast majority of crypto owners, who are just in it
               | for a quick buck.
        
               | goohle wrote:
               | "No office", app-only banks exists. One such bank is
               | popular in my country.
        
             | casi18 wrote:
             | If we want to bring climate change under control then
             | coordination and communication tools that cross national
             | borders are necessary. That is what many of us working in
             | crypto are focused on, you might not yet value it, but we
             | do.
             | 
             | How do we collectively, as a planet, decide what is
             | acceptable usage of energy and what isn't? Who gets to use
             | machines and who doesn't? And how do we do that in a way
             | that isn't authoritarian, and held together with violence?
             | 
             | Is it wrong to use my gpu playing video games all day, or
             | is the moral panic only applying to certain uses of
             | computers?
             | 
             | When you say it should be stopped instantly you should
             | clarify what you mean by that, what action do you see being
             | taken?
        
               | smus wrote:
               | >Is it wrong to use my gpu playing video games all day,
               | or is the moral panic only applying to certain uses of
               | computers?
               | 
               | Is it wrong for you to leave a warehouse full of
               | computers idling to play a computer game? Yes. This is
               | one of the more outrageous false equivalences I've seen.
               | 
               | It stops being a moral panic when crypto consumes more
               | electricity than the entire nation of Argentina.
        
               | tsimionescu wrote:
               | If every person on the planet were using their GPU to
               | play a few hours every day, they would probably not reach
               | the amount of energy used by the Bitcoin blockchain
               | alone.
               | 
               | All of the things you are citing require cooperation and
               | discussion and democratic discourse. An algorithmically
               | driven opaque protocol controlled by a handful of
               | technocrats (the people developing the major clients and
               | the ones running the major mining pools) is part of the
               | problem, not a model for the solution.
               | 
               | Not to mention, money as a means of exchange is simply
               | not one of the problems standing in the way of stopping
               | global warming. The biggest problems are caused by rich
               | people who have calculated that they will not be
               | personally impacted, who couldn't care less about the
               | poor 90+% of the planet who will, and who have thus
               | decided to prioritize increasing their wealth today over
               | any sort of urgent changes. It is also perpetuated by
               | organizational systems put in place a long time ago
               | (mainly for profit corporations with lobbying power) that
               | have the same goals - short term profit over any other
               | consideration.
        
             | CryptoPunk wrote:
             | >>Not to mention, crypto currencies are worse than
             | traditional currencies in every way
             | 
             | You've never been denied financial services due to
             | discriminatory policies, or you would not claim that.
             | 
             | Everything needs to migrate to the public blockchain:
             | banking, online markets, social media platforms, etc.
             | Giving a handful of corporations and governments control
             | over almost every aspect of every one's lives is dangerous
             | and corrupting.
        
               | tsimionescu wrote:
               | Yes, much better to give such control to an algorithm and
               | protocol written and controlled by a handful of engineers
               | and mining pool owners.
               | 
               | And make no mistake: in a state that allows or encourages
               | financial institutions to discriminate, you will
               | eventually be discriminated against with Bitcoin as well.
               | The state may not have caught up to the technology yet,
               | but social problems can't be fixed with technology.
        
               | CryptoPunk wrote:
               | The protocol is publicly defined, and immutable. There is
               | no need to trust any engineers, or give them any control,
               | just as you don't need to trust the developers of open
               | source software in order to trust the software.
               | 
               | And it is much harder for a state to ban a blockchain,
               | than impose laws on centralized financial intermediaries
               | that lead to rampant banking discrimination. The former
               | will cost far more, in economic resources and political
               | capital, to enforce.
        
               | tsimionescu wrote:
               | The protocol is not immutable, and there have been
               | several changes to it in the early days, and several
               | proposed changes that keep being discussed (such as the
               | famous block size limit change). If the people developing
               | the software and the major mining groups agree on a
               | change, who will stop them?
        
               | CryptoPunk wrote:
               | It is extremely hard to organize a protocol change that
               | succeeds in tampering with existing smart contacts, let
               | alone eliminates the permissionless/neutrality guarantees
               | of a public blockchain with significant adoption.
               | 
               | For a public blockchain with as large a userbase as
               | Ethereum, a protocol change that nullifies its neutrality
               | and permissionless-ness would be nearly impossible for
               | any group to push through.
               | 
               | It's absolutely incomparable to traditional banks, with
               | respect to the degree of resistance to interference from
               | governments.
        
               | kybernetikos wrote:
               | > social problems can't be fixed with technology.
               | 
               | Do you think that 'social problems can't be caused by
               | technology'? Because if social problems can be caused by
               | technology then surely they can solve them too.
        
               | tsimionescu wrote:
               | Yes, I also think social problems can't be caused by
               | technology. Technology is neutral - if we're using it to
               | do harm, it's harmful. If we're using it to help, it
               | helps.
               | 
               | Note that this is not 'guns don't kill people, people
               | kill people'. Guns do kill people, so they must be
               | regulated. The gun violence problem in the USA is not the
               | fault of guns, it's the fault of the way US society
               | chooses to regulate access to guns.
        
       | mmmBacon wrote:
       | I see these things and while interesting they are just a lab
       | curiosity.
       | 
       | From the paper: _By tuning the phase delays of each waveguide at
       | each layer of the directional coupler mesh and the coupling
       | region's effective optical length using heaters it should be
       | possible to achieve an arbitrary unitary transfer matrix_
       | 
       | As these phase sections are thermally tuned, they are slow and
       | will have thermal crosstalk to their neighbors. While this is
       | manageable it's not exactly fast to create a new matrix transfer.
       | Additionally, these devices drift over time and operating
       | temperature. Changes over time are due to changes in local stress
       | that cause refractive index to change. So this device as
       | published has no ability to put the MZM bias into a known state
       | and keep it there. Drift is a part of working with photonic
       | devices and even when temperature controlled (very inefficient)
       | they still need compensation. This compensation is the difference
       | between a lab device and something that could be commercialized.
       | 
       | Furthermore such devices have what we call parasitic reflections.
       | When the phase is adjusted, the parasitic reflected phase is also
       | adjusted creating an error in the output. For an analog computer
       | that can only look at amplitude any numerical resolution would
       | have to be coarser than the size of these parasitic reflections.
       | 
       | This is just the tip of the iceberg. Yet none of these papers
       | ever address these problems.
        
       | jazzyjackson wrote:
       | What's this about manufacturing photonic reservoir computers with
       | old CMOS processes? We can do matrix multiplication with photon-
       | buckets or what?
       | 
       | Edit: I guess I'll read the paper for its intro to photonics, I
       | haven't really heard of doing useful math with this stuff
       | https://assets.pubpub.org/xi9h9rps/01581688887859.pdf
        
         | mmmBacon wrote:
         | Optical devices are physically large with waveguides about 1um
         | and and most devices are a few hundred microns in size. The
         | Mach Zehnders that they discuss are 100's of microns in
         | physical size. So it's typical that silicon photonics are
         | fabricated in older nodes in part because the resolution of
         | advanced nodes is not needed and it's a lot cheaper to use the
         | older nodes. Additionally the sweet spot for silicon photonics
         | is a wavelength ~ 1.3um (1.5um) so the node resolution is
         | sufficient for the wavelength used.
        
       | mistrial9 wrote:
       | HNews people - multiple, lengthy comments here claim that "due to
       | competitive pressures" the "total energy used to mine will be the
       | same" no matter how hashes are calculated.
       | 
       | The challenge problem in BTC is to find a number below a
       | threshhold that fits a pattern. The threshhold changes in a two
       | week regime. Finding the number is not prescribed, only the
       | threshhold. Where is the required energy use here?
       | 
       | Please illuminate
        
         | colechristensen wrote:
         | The amount of mining being done would be driven by the price of
         | mining (fixed + recurring) and the reward for mining.
         | 
         | If you make mining cheaper you just get more mining, lowering
         | energy usage per unit mining will increase the mining done to
         | balance the reward.
         | 
         | Actually lowering total energy usage would require lowering
         | total reward or raising the price of energy.
        
           | mistrial9 wrote:
           | this is a sort of economic framing, but also, not the
           | question
        
             | jlokier wrote:
             | It's hard to figure out what you really want to know, after
             | many commenters have tried to explain why replacement
             | mining technology doesn't reduce overall energy
             | consumption, which was your broader line of questoning.
             | 
             | So I will focus on this one part:
             | 
             | > Where is the _required_ energy use here?
             | 
             | Fundamentally, the hash calculation is designed so that
             | energy consumption is proportional to required hashrate -
             | regardless of hashing technology.
             | 
             | The required hashrate is reactive. It's governed by the
             | difficulty adjustment algorithm which reacts to economic
             | competition on the blockchain as well as economic
             | competition among miners, so as to create two decoupled
             | markets with money nonetheless flowing between them, which
             | incentivises miners to spend most of the fees offered by
             | blockchain users on energy, regardless of how efficient the
             | mining technology is per hash.
             | 
             | So the required hashrate always adjusts until most of the
             | mining fees offered by blockchain users gets spent on
             | energy.
             | 
             | If your question is, essentially, "why any energy at all",
             | the answer is that calculating things using zero energy
             | isn't possible. If your question is "why can't we come up
             | with a way to calculate these numbers that's so efficient
             | the system won't increase the difficulty to fully
             | compensate", that might be possible, but it would require
             | the brute-force algorithm assumption to be broken. That is
             | a type of breaking cryptography. The cryptography is
             | designed so that it uses energy proportional to the
             | hashrate on _any_ type of computer. There is no known way
             | around that. People try, of course; the incentives are very
             | high for them to succeed.
             | 
             | Merely building a faster computer won't do it. A photonic
             | computer, for example, doesn't challenge this assumption at
             | all. A computer a trillion times more energy efficient
             | would not challenge this assumption either. My limited
             | understanding tells me even a quantum computer doesn't
             | challenge this assumption, because SHA256 hashing is not
             | amenable to Shor's algorithm, and Grover's algorithm only
             | divides the bit-difficulty in half, which the difficulty
             | threshold adjustment would automatically compensate for.
             | 
             | However, switching away from proof-of-work does change this
             | assumption, and that's how to reduce the energy
             | consumption.
             | 
             | > this is a sort of economic framing, but also, not the
             | question
             | 
             | You cannot ignore the economic framing - it is a key
             | technical part of the proof-of-work design.
             | 
             | It is such an important and powerful effect, it has a
             | technical name, _cryptoeconomic incentive_ , and it's
             | treated as a critical _technical_ factor in all major
             | blockchain designs.
             | 
             | Although you can see it as a statistical or human effect,
             | it is a strong and predictable effect. It is almost
             | analogous to statistical mechanics, where we can calculate
             | the properties of physical substances from underlying
             | "random" individual behaviours, because the statistical
             | ensemble behaves in a predictable way.
        
             | colechristensen wrote:
             | The energy usage comes from the economics, and can't be
             | escaped. The growth of the global hashrate is driven by the
             | profit margin between the mining cost and reward and
             | growing overall mining costs drive btc prices higher.
        
         | mistrial9 wrote:
         | first reference:
         | 
         | Majority is not Enough: Bitcoin Mining is Vulnerable; Ittay
         | Eyal and Emin Gun Sirer, 2014
        
         | RedNifre wrote:
         | It's not about the energy usage, it's about the cost: If you
         | make energy two times as expensive, you would half the mining
         | being done and half the energy usage. If you introduced a 50%
         | global mining tax, you would also half the mining and the
         | energy usage. If you invent technology that can do twice the
         | mining for the same amount of energy, you would get twice the
         | mining and the same energy usage.
        
         | jlokier wrote:
         | - The total mining income is determined by how much blockchain
         | users are willing to pay for blockchain services. It's
         | determined by market demand for transactions on the blockchain,
         | in a grand auction competing with other users.
         | 
         | - There are two markets - competition between blockchain users
         | offering fees in their grand auction, and competition between
         | miners. These are strongly decoupled from each other by the
         | difficulty threshold update algorithm. So the total mining
         | income, offered by users and paid to miners, is independent of
         | hashrate, number of miners, or mining technology. Miners don't
         | change the total mining income, they can just compete to get a
         | share of it.
         | 
         | - Finding the hash number requires a brute force algorithm.
         | There are shortcuts to do it significantly faster, but it is
         | assumed there is no mathematical shortcut which avoids the
         | brute force property. (Brute force means a particular
         | mathematical property of the search algorithm, it does not say
         | how fast or what kind of technology.)
         | 
         | - No matter what technology is used to find the number, it
         | requires _some_ energy, and in proof-of-work, due to the brute
         | force property, the rate of energy consumed is proportional to
         | the hashrate.
         | 
         | - The required total hashrate automatically adjusts, via the
         | difficulty threshold, so that a miner with X% of the total
         | hashrate gets X% of the total network mining fees, no matter
         | what technology they use.
         | 
         | - A miner with X% of the total hashrate can spend anywhere from
         | 0% to X% of the total network mining fees and remain
         | profitable, depending on how energy efficient their rigs are.
         | No more than X%; that would make a loss, so they would stop.
         | 
         | - A miner with access to more energy efficient mining
         | technology (lower rate of energy consumed per hash) will seek
         | to maximise their profit by obtaining more mining rigs, if they
         | can get them. When that technology is widely available,
         | everyone will want it. The effect is to push up the total
         | hashrate for everyone.
         | 
         | - When the total network hashrate goes up, miners without the
         | new technology cease to be profitable (they are spending the
         | same but their X% has reduced due to the total hashrate
         | increase, so they receive insufficient payment), and those have
         | to stop mining unless they can get the new technology. Only
         | miners with the new technology can afford to participate.
         | 
         | - Therefore the network rapidly converges on the new
         | technology.
         | 
         | - The total spent on mining costs must be between 0 and the
         | total mining income.
         | 
         | - When the total spend on mining costs is much below the total
         | mining income, and the new technology is widely available,
         | someone sees a market opportunity and buys a mining rig. It
         | works this way because the network has converged on the new
         | technology, so it's a roughly level playing field to join.
         | 
         | - This raises the hashrate, and pushes up the total mining
         | costs, without changing the total mining income. This keeps
         | happening and converges towards an equilibrium where the total
         | costs are close to the total mining income. As long as there's
         | someone seeing an opportunity to get a little for themselves.
         | 
         | - Because much of mining costs is energy cost, the miner
         | equilibrium is eventually reached when the total spend on
         | energy is close to the total mining income.
         | 
         | - Therefore, total energy consumption is roughly determined by
         | the amount of energy that can be purchased for the total mining
         | income.
         | 
         | - As mentioned at the start, total mining income (before costs)
         | is decoupled from all this mining business. So rolling out new
         | mining technology doesn't change how much total income is
         | available to spent on the whole blockchain mining network, and
         | competitive self-interest among miners means most of that spend
         | goes to energy.
        
           | mistrial9 wrote:
           | interesting! I will research on this and reply (it might take
           | a few days)
        
         | pavlov wrote:
         | If an invention enables hashes to be computed 10x more
         | effectively, miners aren't going to reduce their energy use by
         | 90% -- they'll switch to the new equipment, increase their hash
         | rate 10x, and keep using the available energy.
        
           | 3np wrote:
           | And, if they don't, this creates an opportunity for others to
           | outcompete them (on average) by doing just that
        
           | mistrial9 wrote:
           | yes, agree it is roughly true that miners will very likely
           | maximize their efforts.. this is not the question however
        
         | tromp wrote:
         | The difficulty D defines the expected number of double SHA256
         | hashes E[H] = 2^32 * D that must be computed on average per
         | block to meet the difficulty target, which according to the
         | average efficiency of mining ASICs implies an average amount of
         | energy to be used.
        
           | mistrial9 wrote:
           | first of all, difficulty D is a float, and there are no
           | floats in the actual computation. Second, a float is not a
           | number of hashes. bzzzzt
           | 
           | edit- In plain English, this explanation is incorrect because
           | it relies on floating point number D. Difficulty D is a
           | convenience representation as float of the ratio of two very
           | large integers; one of those large integers is the fixed MAX
           | Target. The other vary large integer is varied by a
           | prescribed formula, once every two weeks.
        
             | tromp wrote:
             | Indeed; as [1] says:                   What is the formula
             | for difficulty?         difficulty = difficulty_1_target /
             | current_target         (target is a 256 bit number)
             | 
             | I simply used the fact that the difficulty_1_target (the
             | MAX Target as you call it) needs an expected 2^32 double
             | SHA256 hashes to meet.
             | 
             | [1] https://en.bitcoin.it/wiki/Difficulty
        
               | mistrial9 wrote:
               | > expected 2^32 double SHA256 hashes
               | 
               | yes, expected by.. some approximation of the current
               | hardware to find the solution.. We are not at the answer
               | yet
        
               | tromp wrote:
               | Nothing to do with hardware. Quoting again from that
               | bitcoin wiki page:                   The highest possible
               | target (difficulty 1) is defined as 0x1d00ffff, which
               | gives us a hex target of         0x00ffff * 2**(8*(0x1d -
               | 3)) = 0x00000000FFFF0000000000000000000000000000000000000
               | 000000000000000
               | 
               | As you can see a random hash has a chance of close to
               | 2^-32 to satisfy that target.
        
               | mistrial9 wrote:
               | > Nothing to do with hardware
               | 
               | use a pencil?
        
       | OnlyRepliesToBS wrote:
       | pls stop
        
       | tromp wrote:
       | oPoW FAQ from [1]
       | 
       | 1. Is there reason to believe that the manufacturing of oPoW
       | miners will be more decentralized than ASIC manufacturing
       | currently?
       | 
       | There are no guarantees in decentralized networks, but we think
       | all evidence points to oPoW creating a more decentralized
       | network.
       | 
       | a. Cost of entering oPoW hardware manufacturing will be much
       | lower due to Silicon Photonics using old CMOS nodes (~90 or 220
       | nm vs. ~7 nm for transistors).
       | 
       | b. Removing electricity prices from the mining equation means
       | that miners do not have to concentrate in regions with cheap
       | power or depend on the sanction of governments that control most
       | energy sources.
       | 
       | 2. What other costs would replace energy?
       | 
       | Hardware depreciation
       | 
       | 3. Why create Heavy Hash, why not just compute SHA256 optically?
       | This accomplishes the same goal without any changes to the
       | Bitcoin codebase.
       | 
       | Many have tried... there is a large economic incentive. Analog
       | optical computing is limited in the types of computations it can
       | do efficiently. It's much more feasible to design the PoW around
       | those limitations.
       | 
       | 9. When will optical mining hardware be available?
       | 
       | General-purpose photonic coprocessors are being commercialized by
       | multiple companies that have shown interest in supporting mining
       | hardware. Stay tuned for announcements.
       | 
       | 10. Is the oPoW algorithm limited to optical devices? If not,
       | will there be miners on the system using digital hardware?
       | 
       | oPoW is reverse compatible with CPUs, GPUs, and ASICs.
       | 
       | 11. Is oPoW less secure than SHA256?
       | 
       | oPoW is based on Heavy Hash, a construction that includes SHA3
       | and inherits all of its security properties. (see Towards Optical
       | Proof of Work above for a cryptographic analysis).
       | 
       | [1] https://www.powx.org/opow
       | 
       | [2] HeavyHash: https://github.com/PoWx-Org/obtc-
       | miner/tree/master/algo/heav...
        
         | user-the-name wrote:
         | > 2. What other costs would replace energy?
         | 
         | > Hardware depreciation
         | 
         | In other words, instead of massive environmental damage through
         | energy production, we would have massive environmental damage
         | through e-waste.
        
           | dr_dshiv wrote:
           | Yeah, but maybe this drives the development of radically more
           | efficient computing, a technology that compounds in value
           | over time.
        
             | user-the-name wrote:
             | You think nobody wanted efficient computing before this?
        
         | zozbot234 wrote:
         | > Cost of entering oPoW hardware manufacturing will be much
         | lower due to Silicon Photonics using old CMOS nodes (~90 or 220
         | nm vs. ~7 nm for transistors).
         | 
         | If silicon photonics using old process nodes is so competitive,
         | cheap to manufacture and power-efficient, why aren't they
         | planning to use it for general purpose workloads? Matrix-vector
         | multiplication is a key operation for most GPU compute,
         | including for machine learning. They say "...On the other hand,
         | to be competitive in the field of machine learning, one needs
         | to compute billions of multiply-accumulate operations per
         | second" but that kind of scale out applies just as much to
         | crypto mining, and is the part that's supposedly addressed by
         | reusing old process nodes.
        
         | rjmunro wrote:
         | > Cost of entering oPoW hardware manufacturing will be much
         | lower
         | 
         | That just means more mining hardware will be manufactured and
         | used. They might use less energy to run each one, but that
         | likely to be balanced out by the energy costs of manufacture
         | and the e-waste. More mining hardware will mean the difficulty
         | will be increased by the system.
         | 
         | If a Bitcoin is worth $40,000, a miner somewhere will be
         | prepared to spend approaching $40,000 to mine it. That money
         | will be spent on a combination of buying the hardware and
         | energy for running the hardware.
         | 
         | Any reduction in energy use or hardware costs will just mean
         | the $40,000 will stretch further, meaning more e-waste and/or
         | more energy use, and an adjustment in difficulty by the
         | network.
        
       | api wrote:
       | One of the limited upsides I see with the cryptocurrency bubble
       | is that it's funded some progress in ASICs, and if it funded
       | progress in photonics that would actually be quite awesome.
       | 
       | Another upside is that it's funded a ton of very interesting
       | cryptography research like SNARKs/STARKs and homomorphic
       | encryption.
        
       | jlokier wrote:
       | Heh. I worked on a type of photonic PoW in 2019 (but it wasn't
       | silicon photonics).
       | 
       | - It's faster and lower power for the hash rate. It's worth it.
       | But not as fast and low power as hoped.
       | 
       | - It's a great advantage for the early adopter who can mine that
       | bit faster than everyone else for a short time. That was the
       | motivation for the project.
       | 
       | - Contrary to the title of the article, making hashing faster for
       | less energy doesn't "help with the high energy consumption of the
       | crypto currency mining activities" once the technology becomes
       | available to enough miners.
       | 
       | It's the same as the introduction of ASICs before it: only a
       | _temporary_ advantage to those few who have it first. Of course
       | that 's only a few miners, so it doesn't affect energy
       | consumption of the whole blockchain much. As soon as a new
       | technology becomes widespread enough to have a significant effect
       | on the whole blockchain, blockchain proof-of-work returns to
       | _exactly the same_ amount of energy consumption as whatever
       | technology came before it.
       | 
       | It's because of how the mining-price system works, proof-of-work
       | energy consumption is independent of the technology widely used.
       | In other words, you _can 't_ solve the proof-of-work energy
       | consumption problem with a new proof-of-work hashing technology.
       | 
       | So whenever you see a headline or article promoting a new proof-
       | of-work solution on the grounds that it will reduce energy
       | consumption of the blockchain - that's false. Snake oil, even.
       | 
       | (On the other hand, other mining methods such as _proof-of-stake_
       | do reduce blockchain energy consumption for real, in exchange for
       | different problems, perhaps.)
       | 
       | But I think the Eindhoven people have understood this, and it's
       | the journalism that misleads in this respect. From the article:
       | 
       | > From our perspective, the ideal proof of work algorithm would
       | be an algorithm that spends no energy, but time (i.e. pure
       | delay). This kind of proof of work is hardly possible in the real
       | world. So instead, we would love to see some sort of a
       | "computational delay" when only a small fraction of energy is
       | spent on proof-of-work computation, while this computation itself
       | introduces a time-delay. We believe that photonics can help us to
       | achieve such a "computational delay".
       | 
       | I'm surprised Verifiable Delay Functions (VDFs) are not
       | mentioned. There is has been an emerging field of cryptography
       | focused on delays enforced mathematically, called Verifiable
       | Delay Functions, since about 2018. Rather like the technology
       | race of proof-of-work, VDFs rely on the assumption that
       | underlying technology (logic gates, arithmetic units (like in
       | analogue photonics), etc) is somewhat evenly distributed; that
       | nobody has access to a technology that can perform the
       | calculations with _much_ lower delay than everyone else.
       | 
       | VDFs still won't reduce energy consumption if they are used as
       | another form of proof-of-work. For example if running many delay
       | functions calculated in parallel gives a mining advantage, many
       | will be built and together they will use the same amount of
       | energy as proof-of-work. To provide a real energy consumption
       | benefit, the blockchain consensus method needs to change as well.
       | Think "proof-of-verifiable-delay". As far as I know, no such
       | method has been worked out yet.
        
         | manytree wrote:
         | One of the most successful implementations of VDFs in crypto
         | right now is Chia, which uses proof of storage space
         | interleaved with proofs of time from VDF servers. There is not
         | an incentive created by the consensus algorithm to have many
         | VDF servers, since only the fastest VDF server participates in
         | block creation.
         | 
         | Also, it alters the PoW economics somewhat by utilizing
         | already-existing general purpose hardware (storage) and has an
         | implementation which does not yet seem susceptible to special
         | purpose hardware attacks (i.e., increasing storage density /
         | decreasing TCO already has a huge bounty)
        
         | mistrial9 wrote:
         | > proof-of-work energy consumption is independent of the
         | technology widely used
         | 
         | citation
        
         | nwiswell wrote:
         | > It's because of how the mining-price system works, proof-of-
         | work energy consumption is independent of the technology widely
         | used. In other words, you can't solve the proof-of-work energy
         | consumption problem with a new proof-of-work hashing
         | technology.
         | 
         | This is not strictly true. The cost to mine will converge with
         | the proceeds of that mining -- that is economic law. But the
         | total cost of mining is actually the cost of ownership + the
         | cost of operation of the hardware. As we know, electricity
         | presently dominates the cost of operation and the total cost.
         | But you can imagine a very low power chip that is expensive to
         | make -- like this photonic PoW, maybe -- and then the cost of
         | the chips themselves dominate the total cost and drive down
         | energy usage as a portion of the whole pie.
        
         | reginold wrote:
         | Appreciate your thoughtful explanation and context. The
         | shortcut on "whenever you see a headline about low energy PoW"
         | is useful, I had been wondering about that.
         | 
         | One thought - has there been anything on something like "Proof
         | of Capability of Work"? ie "Yes, I have all this compute power
         | potential, but I'm not using it".
         | 
         | Oh shit did I just back into what you mean by VDF? Basically
         | Proof of Sitting Around? I'm gonna hit submit before talking
         | myself in circles.
        
           | MinorTom wrote:
           | > "Proof of Capability of Work"
           | 
           | I'm not an expert on this, but:
           | 
           | Practicality aside this is either still really wasteful
           | (lot's of unused compute sitting around in some datacenter)
           | or really susceptible to attacks (e.g. "proof of the
           | capability to rent a lot of AWS servers for a few seconds -
           | everybody can do that, and somebody will")
        
             | reginold wrote:
             | Wasteful: Unused compute sitting around in some datacenter
             | is on the first order less wasteful than having it using
             | tons of electricity to run a random puzzle. Less
             | electricity usage. However, the second order effects may
             | negate the effect i.e. miners instead buy up more units,
             | which puts more pressure on manufacturing, which ends up
             | using that extra electricity, and the energy waste is
             | equal.
             | 
             | Attacks: that's exactly what you would need to build a tool
             | for. You need to prove that you sit around, and not just
             | promising to sit around. It's a tough problem! Proof of Not
             | Work.
        
           | jlokier wrote:
           | > Oh shit did I just back into...
           | 
           | No, actually you didn't.
           | 
           | > has there been anything on something like "Proof of
           | Capability of Work"? ie "Yes, I have all this compute power
           | potential, but I'm not using it".
           | 
           | As far as I know, there has not. But I hope you are a
           | physicist, because this idea is genius.
           | 
           | The key role played by _counterfactuals_ in quantum
           | mechanical systems might make it technically possible to
           | prove potential to perform computation that is never
           | performed.
        
             | reginold wrote:
             | Hmm interesting! I'm a cat, not a physicist though.
        
         | sonoffett wrote:
         | As an aside, the algorand layer-1 chain uses VDFs to select a
         | validating set per block, weighting member selection by how
         | much crypto each account owns. They call it Pure Proof of
         | Stake. It definitely reduces the energy consumption and
         | increases network throughput, of course with trade offs. See:
         | 
         | https://www.algorand.com/technology/research-innovation/rese...
        
       | tomhunters wrote:
       | This is a great approach. You can see how they're going to change
       | crypto mining through their interview Q&As. I'm just hoping that
       | they will properly execute the plan.
        
       | Mdubrov wrote:
       | You can play with mining heavyhash (the underlying algorithm for
       | photonic mining discussed in the story) on your cpu/gpu here
       | 
       | https://pool.obtc.me/home
        
       | dvh wrote:
       | Green light is 200nm, but we are already approaching 2nm with
       | electronics, wouldn't that make any equivalent light CPU 100x
       | larger/slower?
        
         | automatic6131 wrote:
         | This has two false assumptions, one being that the process
         | number (a marketing number chiefly), has any physical meaing.
         | And another that you can compare it to the wave length of
         | light. And also green light is 500-560nm.
        
         | mmmBacon wrote:
         | Why would shorter wavelength light make computation faster?
         | Silicon is a great absorber below about 1000nm so infrared
         | wavelengths are used. 200nm is ultraviolet.
        
         | poulpy123 wrote:
         | Larger, yes, slower no since it uses light as a transmission
         | and not electrons
        
         | e2le wrote:
         | Wouldn't it be possible to run multiple concurrent processes on
         | the same CPU using many different wavelengths of light?
        
       ___________________________________________________________________
       (page generated 2021-10-01 23:02 UTC)