[HN Gopher] Are blockchains decentralized?
       ___________________________________________________________________
        
       Are blockchains decentralized?
        
       Author : rdl
       Score  : 129 points
       Date   : 2022-06-21 09:01 UTC (14 hours ago)
        
 (HTM) web link (blog.trailofbits.com)
 (TXT) w3m dump (blog.trailofbits.com)
        
       | [deleted]
        
       | prettyWise wrote:
       | "On October 25, 2021, a vulnerability in all prior versions of
       | Geth was discovered that permitted a carefully crafted peer-to-
       | peer message to inflict a denial-of-service attack on the
       | receiving node. 42 From our crawls of the Bitcoin network, we
       | observe that 21% of Bitcoin nodes are running an old version of
       | the Bitcoin Core client that is known to be vulnerable."
       | 
       | The beginning of this excerpt is talking about Geth, and how
       | unpatched Geth resulted in a fork of Ethereum. Then, out of
       | nowhere they indicated 21% of Bitcoin nodes are vulnerable and
       | running an old version of the bitcoin core client, and they bold
       | it. They didn't say anything about this vulnerability in the
       | preceding paragraph. Vulnerable to what? Certainly not vulnerable
       | to the same thing that Geth exploit took advantage of.
        
       | roenxi wrote:
       | This is interesting research and I encourage everyone to go read
       | the article. But, on the assumption that a lot of people will
       | just read the headline and comments I'm going to preemptively
       | talk about the question there ...
       | 
       | People misunderstand decentralisation in practice. Computer
       | types, when they talk about decentralisation, usually mean a
       | relatively large number of homogeneous nodes acting as peers.
       | Which is cool but not how decentralised systems work in practice
       | out in the meaty reality we all live in.
       | 
       | In reality, we have an economy that quickly works out who is the
       | best (say, Samuel is the best) at something (say, mining bitcoin)
       | and routes most of the resources available for hashing to Samuel.
       | The situation is still decentralised, because if Samuel stops
       | being the best at calculating hashes then resources will be
       | reallocated to someone else. But in the short term all the
       | resources will go to Samuel and he could do a lot of damage to
       | the network.
       | 
       | People keep thinking that because the economy picks out a few
       | winners that means that the system is now locked in stone - that
       | isn't the case. The economy is perfectly happy to change things
       | up radically when the situation changes. At least until a
       | government steps in and regulates the ability to change flexibly
       | out of the system.
        
         | hansworst wrote:
         | By this definition, the current financial system is also
         | decentralised. After all, if one bank fails, a new bank could
         | very easily take its place. Even our system of central banks
         | consists of a relatively large number of more or less equal
         | peers. If the US central bank fails, I'm sure "the economy"
         | will be more than happy to change things up radically and
         | reassign some of the global influence on the financial system
         | that the fed currently has to competing nations' central banks.
        
           | Spooky23 wrote:
           | It is, from a different perspective.
           | 
           | Pre-Fed, we routinely had depressions and bank failure cycles
           | because the private markets weren't resilient enough to
           | withstand different types of shocks.
        
         | sandworm101 wrote:
         | Except that Samuel wants to keep his place. So he will do
         | whatever he can to leverage his current centrality to continue.
         | His hope is to be in control when the hammer falls and
         | flexibility stops. One way of doing that is to force the issue.
         | Those in central positions within a dynamic market eventually
         | seek to kill that market, leaving them in the monopoly position
         | (amazon, google, facebook etc). To maintain decentralization in
         | the long term such leaders need to be periodically culled,
         | hopefully though market forces prior to them killing the
         | market. In bitcoin, that might mean periodic removal of the
         | largest commercial actors, perhaps by periodic price crashes
         | that favor niche setups.
        
           | masswerk wrote:
           | However, in praxis, not every participant in an economic
           | system is a perfect player in the sense of game theory. Take
           | for instance the history of the London Underground and its
           | rivaling companies and directors. There are several
           | instances, where a player maintained a position detrimental
           | both to their own economy (as in profits and strategic
           | position) and to the entire system (as in gains that may be
           | secured in the future), as other motives take over. (E.g.,
           | hurting another player gains top priority, even if the
           | damages inflicted to the respective own position exceeds the
           | damages inflicted to the competing player. Even to the extent
           | of losing that position altogether, as in being fired as the
           | director.) Notably, this was a system with multiple
           | controlling parties, as directors and boards, acts of
           | parliament, financiers, etc, still, this couldn't stop this
           | kind of behavior. (E.g., blocking closing the circle line is
           | a prime example.)
        
           | roenxi wrote:
           | > (amazon, google, facebook etc)
           | 
           | I'm not sure where I sit on your major point, but these 3
           | just are not monopolists and this is a mistake that keeps
           | getting made. All 3 of these are in cut throat markets where
           | they compete by selling really great products (AWS, Google
           | Search and Facebook respectively).
           | 
           | A lot of individuals don't like them (I refuse to use Google,
           | for example) but that doesn't change the fact that they get
           | market share by being great at what they do.
        
             | tsimionescu wrote:
             | I know less about AWS and Good ads, but Facebook has bought
             | each and every social network it could afford to prevent
             | any chance of havjng competition - most notably Instagram
             | and WhatsApp. That is the very definition of monopolistic
             | practices.
        
             | NineStarPoint wrote:
             | Google is very much a monopolist in search. They have more
             | than a 80% usage share of the space (most places I look at
             | say 90% today), and have had that much share for more than
             | a decade. (On a separate note they are in a duopoly with
             | Apple in the Phone OS market and a borderline monopoly in
             | the web browser market, giving them a lot of power to throw
             | around in general.)
             | 
             | Facebook I go back and forth on. They are undoubtably the
             | biggest player in the social media space, but if you count
             | all social media (reddit, twitter, Pinterest) they are
             | large but definitely not monopoly level. On the other hand,
             | when it comes to real name interaction and local community
             | organization they are completely dominant over the other
             | players. Ultimately I consider the acquisition of instagram
             | to have been over the line enough to consider them
             | deserving of the treatment of a monopoly, but it's not as
             | obvious a case a google. Their space also isn't as cut-
             | throat as you would expect due to network effects, and
             | there are other countries where they are in fact locally a
             | completely dominant monopoly.
             | 
             | Amazon is definitely not a monopoly by any reasonable
             | definition. All of the fields they are in have multiple
             | other major players as well that they are in fierce
             | competition with.
        
               | SideburnsOfDoom wrote:
               | > Amazon is definitely not a monopoly by any reasonable
               | definition. All of the fields they are in have multiple
               | other major players as well that they are in fierce
               | competition with
               | 
               | I can't agree with that.
               | 
               | 1) Amazon self-preferences their own products
               | 
               | 2) Amazon makes knock-offs of third-party products that
               | succeed
               | 
               | 3) For third-party sellers, Amazon is just about the only
               | marketplace that matters. The rest combined don't come
               | close to matching it.
               | 
               | John Oliver covered all of this recently.
               | 
               | https://www.rollingstone.com/tv/tv-news/john-oliver-tech-
               | mon...
               | 
               | https://fossbytes.com/watch-john-oliver-tear-apart-big-
               | tech-...
        
               | NineStarPoint wrote:
               | 1 and 2 are anti-competitive (and anti-competitive
               | practices on that level are 100% a reason to bring an
               | anti-trust case again them), but that doesn't make them a
               | monopoly. From a buyers perspective, there are plenty of
               | other places to go buy everything they sell.
               | 
               | 3 is an interesting point though. I'm having trouble
               | finding good numbers on exactly how dominant they are as
               | a platform for third party sales but they have at least
               | 3-4 times the GMV of their next largest competitor, Ebay.
               | Best I can find is that, in the US, there was about 900
               | Billion in online marketplace in 2021, of which Amazon
               | represented about 400 Billion. Being 44% of the market is
               | probably bordering on monopoly level.
               | 
               | (And to the first points, about half of their sales were
               | their own products on their own marketplace, so I'd
               | definitely be in support of an anti-trust investigation
               | at the least here)
        
               | Melatonic wrote:
               | It may just be that we need to update our definition of
               | what a Monopoly is.
        
               | NineStarPoint wrote:
               | Personally I'd rather monopoly keep its meaning (a
               | commodity or market sector controlled by a single party)
               | and people use other words to describe the other ways a
               | large company can be anti-competitive. But languages do
               | often evolve to take a word specifying thing A that is a
               | subclass of B and start using it to just refer to the
               | entire Subclass B, so wouldn't be unusual for that to
               | happen.
        
             | deebosong wrote:
             | Aren't Goog/ Ama/ Fbook known for swallowing up smaller
             | companies who might be potential threats/ competitors, and
             | "kill them off" via this method? Seems like it's common
             | practice for such entities.
        
             | Schroedingersat wrote:
             | Google is, and acts exactly like a monopoly in search. They
             | intentionally degrade the effectiveness of their search to
             | support their otyer business. Even when they are trying,
             | they have been getting progressively worse at finding the
             | real content, and many times put the same 5 garbage spam
             | sites into the top 5 positions for a huge variety of
             | searches. They even use their monopoly position to bully
             | the entire world into degenerating all online content into
             | a homogeneous soup of gpt-3 generated gibberish and to push
             | products like amp.
             | 
             | They are a duopoly in mobile OS, and a monopoly on browsers
             | -- which they use to bully the world into altering the
             | internet to their benefit and reduce the effectiveness of
             | ad and tracking blockers.
             | 
             | Facebook have such domination over the social graph, that
             | they intentionally sever vertices, and then charge for the
             | privilege of having them reconnected. The precise opposite
             | of what they claim their service is for.
             | 
             | AWS has competitors for now, but google and microsoft are
             | only able to half-compete by leveraging their other
             | monopolies.
        
             | theplumber wrote:
             | Wow... and you really believe that? It's just like with
             | Microsoft. Once they've got enough money and market share
             | they destroyed their competition through various
             | monopolistic tactics: i.e acquisitions, dumping, lockin etc
        
             | kwertyoowiyop wrote:
             | Making great products isn't incompatible with being a
             | monopolist, is it? For example, Google isn't the default
             | search provider for Firefox just because it's a great
             | product. They pay Mozilla more than any new competitor
             | could afford.
             | 
             | By the way: I'm not an economist, so I read this article to
             | see if my claim makes sense:
             | https://stats.oecd.org/glossary/detail.asp?ID=3262
        
           | [deleted]
        
         | t_mann wrote:
         | By your definition of decentralization (a central entity could
         | theoretically be replaced) everything from the Roman Empire to
         | North Korea is decentralized - nothing is guaranteed to have
         | its place forever. A definition that applies to every
         | imaginable instance is pointless, but more importantly, it's
         | far from how people commonly use the word.
        
         | SideburnsOfDoom wrote:
         | > Which is cool but not how decentralised systems work in
         | practice ... In reality, we have an economy that quickly works
         | out who is the best .. and routes most of the resources
         | available for hashing there
         | 
         | I disagree, somewhat. It depends on the purpose of the
         | decentralisation. If your aim is "best" which I think also
         | means "cheapest" then yes, you have described what could
         | happen.
         | 
         | But decentralisation can also have "resilience" as the goal,
         | even at the expense of the best performance.
         | 
         | These goals might even be in conflict. What if Samuel, as noted
         | "wants to keep his place". What if Samuel wants all the traffic
         | to go him so that at some time, he can subvert it in some way.
         | He may only need 51% of the traffic. He may be willing to take
         | a loss for a while to get into this position. He may even have
         | a government backer willing to spend a lot on outcomes and not
         | be seeking a profit in itself.
         | 
         | And as noted, when Samuel is suddenly no the "best" after a
         | long time in that position, chaos could ensue.
         | 
         | I hear "resilient" when "decentralised" is said. Many others
         | will too. You're showing how this may be very misleading.
        
         | Cthulhu_ wrote:
         | > People keep thinking that because the economy picks out a few
         | winners that means that the system is now locked in stone -
         | that isn't the case. The economy is perfectly happy to change
         | things up radically when the situation changes. At least until
         | a government steps in and regulates the ability to change
         | flexibly out of the system.
         | 
         | This flexibility and survival of the fittest mentality is
         | costing people billions; of course a government would step in,
         | because clearly the economic techno-libertarians aren't able to
         | come up with a secure and stable system.
         | 
         | At some point, cryptocurrencies and blockchain technologies
         | sounded like We The People taking power back from the big bad
         | government and banks. In practice, it turns out - to everyone's
         | sarcastic surprise - that a handful of people got very rich off
         | it and shat on those lofty goals.
         | 
         | I'm not buying it. Never did. Yeah I missed the boat on getting
         | rich and I am salty about it, so it exceeded my initial
         | cynicism, but it's still inherently broken. Unregulated finance
         | attracts conmen. So does regulated finance but at least they
         | can be tracked down.
        
         | gizzlon wrote:
         | > At least until a government steps in and regulates the
         | ability to change flexibly out of the system.
         | 
         | Just as often, the government is the only one who can _keep_
         | the flexibility and ensure free competition. E.g.
         | https://en.wikipedia.org/wiki/Sherman_Antitrust_Act_of_1890
        
           | roenxi wrote:
           | The US economic policy in the 10s and 20s is a candidate for
           | the cause of the crippling depression in the 30s. I note from
           | the wiki article that once the 30s roll around they all but
           | stopped having notable anti-trust cases.
           | 
           | The US's industrial policy for the last 50 years has
           | successfully pushed a lot of manufacturing out of the country
           | to the point where the US is arguably being out-competed by
           | communists. It isn't obvious that US government economic
           | policy in living memory is succeeding in promoting a healthy
           | market. The argument for why that is going to change and
           | their intervention will help needs to be more clearly
           | articulated.
        
             | dghlsakjg wrote:
             | The US is the 2nd largest manufacturing economy in the
             | world, and is much higher than China (no. 1) on a per
             | capita basis. Also, Let's not pretend for a second that
             | China is actually communist when it comes to manufacturing
        
             | gizzlon wrote:
             | > The US economic policy in the 10s and 20s is a candidate
             | for the cause of the crippling depression in the 30s
             | 
             | Or too little regulation. Or too the wrong kind. Or
             | something else. I'm not arguing for or against current US
             | economic policy.
             | 
             | This is the theory: Without any regulation, one or a few
             | actors can grow large and stifle any competition and
             | innovation.
             | 
             | This theory seems to be proven by history.
             | 
             | Some might say: " _that wasn 't a *real* free market_".
             | Just like some might say: " _that wasn 't *real*
             | communism_". These both need some strong arguments to back
             | them, or they come off as _No true Scotsman_
             | (https://en.wikipedia.org/wiki/No_true_Scotsman)
        
             | pixl97 wrote:
             | > US is arguably being out-competed by communists.
             | 
             | I mean if you mean communist by countries that give no
             | shits about how they treat their population, where they
             | dump pollution, and the absolute drive to monopolize
             | commerce, then yea we can use your definition of
             | communists.
             | 
             | Of course, feel free to go live in those conditions if that
             | sounds like a great work environment to be in.
        
         | dpierce9 wrote:
         | The royal family of Britain has occasionally changed over time.
         | Is it decentralized?
        
       | wslh wrote:
       | In July 2016, we created a simple spreadsheet [1] comparing
       | different blockchains and security state of the art at that time
       | [2]. There are things to review there but the theoretical attack
       | to Bitcoin was relatively low for state actors and miners. Miners
       | are not incentivized to do this or do it only as the latest
       | option.
       | 
       | It is also important to know that new blockchain technologies
       | such as Solana, Algorand, Avalanche don't have enough scientific
       | peer reviews to make a strong claim in favor or against them now.
       | 
       | [1] https://blog.coinfabrik.com/wp-
       | content/uploads/2016/07/Block...
       | 
       | [2] https://blog.coinfabrik.com/cryptocurrency/overview-of-
       | block...
        
       | simonw wrote:
       | I found this information about the DARPA contract that funded
       | this research: https://govtribe.com/award/federal-contract-
       | award/definitive...
        
         | uncomputation wrote:
         | Interesting they are totally different. ZK proofs are used in
         | cryptocurrency, but they can also be used totally separately
         | just as mathematical objects on their own. I don't see how ZK
         | proofs for defense "capabilities" relates to centralization
         | risk in cryptocurrency networks.
        
       | dale_glass wrote:
       | I think this misses the elephant in the room: the tech may have
       | flaws, but there's far worse flaws.
       | 
       | Who is it that actually has control and influence in crypto?
       | 
       | 1. The developers. 2. The miners. 3. Everyone else (very distant
       | from the rest)
       | 
       | The developers aren't decentralized at all, they typically are a
       | single, small team with some sort of leader. They can make a lot
       | of decisions almost unilaterally.
       | 
       | Then very close below are the miners. The miners have serious
       | economic concerns, so they can do things like refusing to run the
       | software the developers provide. So we can expect devs and miners
       | to be in close contact in most cryptocurrencies.
       | 
       | And very far below that is everyone else. You can run your "full
       | node", but most nobody cares. Miners decide what goes or doesn't
       | on the network.
       | 
       | And that's why Bitcoin is the way it is. Back when fees rose to
       | $50/transaction because the capacity was overwhelmed...
       | 
       | Did the devs have a problem? No, because they had ideas how to
       | sell add-on products to deal with that issue, and such products
       | are much easier to sell when there's a problem that needs fixing.
       | 
       | Did the miners have a problem? No, because the network was still
       | heavily used and they were reaping all those juicy fees coming
       | their way.
       | 
       | Did the users have a problem? Yes, their experience sucked badly.
       | But for both parties actually in control solving those problems
       | would require losing money.
       | 
       | And thus crypto ends up being controlled by a small cabal of
       | elites, while the normal users get screwed.
        
         | samatman wrote:
         | > _You can run your "full node", but most nobody cares. Miners
         | decide what goes or doesn't on the network._
         | 
         | Limiting myself to BTC, this is not how it works.
         | 
         | Miners can emit as much nonsense, noise, malformed information
         | as they want. Full nodes perform validation: they decide what a
         | compliant chain looks like, and only accept contributions from
         | miners which have that shape.
         | 
         | This is why there was such a vicious fight about block size:
         | the side which won the mindshare and economic value fought for
         | a small blockchain so that running a full node remains feasible
         | forever.
         | 
         | Validation is a huge problem with more profligate blockchains,
         | some/many of which are de-facto centralized due to the
         | excessive hardware requirements.
         | 
         | It is on an architecture and algorithm level a critical part of
         | the decentralization of bitcoin, something I expect HN to get
         | right regardless of their position on bitcoin's worth to
         | civilization.
         | 
         | Edit for more detail: an object-level example is that miners
         | _cannot_ unilaterally start issuing larger blocks. These will
         | fail validation by the full nodes, ergo, it is the full nodes
         | which determine what Bitcoin is or isn 't. Miners merely
         | construct data which has that shape.
        
           | cormacrelf wrote:
           | I don't think this clarified it at all. The crux: miners can
           | decide to OMIT transactions, REORDER transactions within a
           | block, or DELAY them for later. All of those actions pass
           | "validation", because they cannot be detected by a validator.
           | Miners do so at the expense of lost transaction fees, or with
           | reordering, for free, or with delaying, with the possibility
           | that some other miner will reap the transaction fee first.
           | There is a lot of money in doing this, called 'miner
           | extractable value' / MEV, which is bigger when you are
           | processing complex smart contracts with funky clauses to
           | exploit. They are not able to INVENT new transactions (as
           | that would be caught by a validator, miners don't know your
           | private keys and couldn't easily forge a transaction). A
           | validator cannot detect a missing, silently dropped
           | transaction. Nobody can detect such a thing except whoever
           | submitted it and doesn't see it in a block. Nobody at all can
           | detect a reordered or delayed transaction; you just have to
           | assume the miners will act according to their own interests
           | as much as possible.
           | 
           | The paper goes into this, of course. Miners are not even the
           | only ones who can decide to omit transactions -- submitting a
           | transaction is not secure, so any intermediaries between the
           | transactor and the mining nodes also have a chance to
           | silently drop it or MITM it for delay etc. It could have done
           | more on high-end MEV though.
        
             | samatman wrote:
             | Which doesn't contradict a word I said. The things you
             | describe are all on the miner side of the contract.
             | 
             | Most of the problems you are describing are less relevant
             | on BTC, which doesn't support complex smart contracts in
             | practice, but yes, the miners are the only entity which can
             | generate data of the valid shape, and only when they get
             | lucky.
             | 
             | So OMIT/REORDER/DELEY are privileges which a miner has to
             | sweat to earn temporarily. If 80% of the hash rate hates
             | you they can probably keep your transactions out
             | indefinitely, presuming willingness to bear the cost, which
             | y'know, war is hell, it could happen.
        
           | dale_glass wrote:
           | > Miners can emit as much nonsense, noise, malformed
           | information as they want. Full nodes perform validation: they
           | decide what a compliant chain looks like, and only accept
           | contributions from miners which have that shape.
           | 
           | That highly depends on who the full node is. A random joe
           | with $100 worth in the wallet can be safely ignored. If their
           | node refuses to see the new blocks as legitimate, the owner
           | doesn't get to use their money for anything anymore. The
           | likes of Coinbase though would have a lot more influence.
           | 
           | There were plenty full node owners that were onboard with big
           | blocks, but since they didn't have the pull, they didn't
           | matter. They could reject validating the blocks all you like,
           | but the network can keep on working fine without their
           | approval.
           | 
           | > This is why there was such a vicious fight about block
           | size: the side which won the mindshare and economic value
           | fought for a small blockchain so that running a full node
           | remains feasible forever.
           | 
           | No, the side that won is the side that wanted to make profit
           | from selling L2 solutions and collecting fees. There's no
           | technological reason for a 1MB limit that makes any sense.
           | 
           | Bitcoin started in 2009. Since then there have been 4 main
           | generations of the Raspberry pi, disks went in size from
           | ~1-2TB maximum to ~20TB maximum, gigabit internet became
           | fairly commonplace, and CPUs also improved greatly.
           | 
           | Plus, the modern BTC is pretty much useless for small
           | transactions anyway -- if you have any use for it, you can
           | certainly afford decent hardware.
        
             | jasode wrote:
             | _> There's no technological reason for a 1MB limit that
             | makes any sense. Bitcoin started in 2009. Since then there
             | have been 4 main generations of the Raspberry pi, disks
             | went in size from ~1-2TB maximum to ~20TB maximum, gigabit
             | internet became fairly commonplace, and CPUs also improved
             | greatly._
             | 
             | Increasing the block size from 1MB to say... 20MB ... will
             | inevitably _reduce_ the number of participants able to run
             | full validating nodes. Consider various discussions on
             | network traffic patterns for existing 1MB blocks:
             | https://bitcointalk.org/index.php?topic=3286296.0
             | 
             | So the question is: Is the reduction of participants from
             | the higher technical requirements significant enough that
             | it weakens Bitcoin? (I honestly don't know.)
             | 
             | I guess someone can put together a spreadsheet model with
             | some "reasonable" guesses for the ripple effects of a
             | hypothetical 20MB block size and try to predict game theory
             | of what might happen. Has anyone done such a math exercise?
             | 
             | Sure, many participants already processing 1MB blocks today
             | can easily switch to bigger 20MB blocks with no problems.
             | But many can't and we don't seem to have a consensus
             | prediction on what the percentage is.
        
               | dale_glass wrote:
               | > Increasing the block size from 1MB to say... 20MB ...
               | will inevitably reduce the number of participants able to
               | run full validating nodes. Consider various discussions
               | on network traffic patterns for existing 1MB blocks:
               | https://bitcointalk.org/index.php?topic=3286296.0
               | 
               | That discussion is from 2018, that was 4 years ago.
               | Surely things have improved somewhat since then.
               | 
               | > So the question is: Is the reduction of participants
               | from the higher technical requirements significant enough
               | that it weakens Bitcoin? (I honestly don't know.)
               | 
               | No, that's far too simple of a question. A better is:
               | where do you find the balance between technical
               | requirements for the network and the usability of the
               | network for end user?
               | 
               | It makes perfect sense that as the usage grows, the
               | network will become more expensive to operate. More users
               | is more data, and more bandwidth. If you just refuse to
               | increase the requirements an inch, you're refusing to
               | support the growing userbase.
               | 
               | Many other projects have to make such decisions. Your
               | space sim gets more popular -- that costs more bandwidth,
               | requires more polygons on the screen. Do you bump up the
               | system requirements, or do you stall your growth to allow
               | 10 year old hardware to be usable? And pretty much all of
               | them bump the requirements. You can't play modern games
               | on a 386.
        
               | kevinak wrote:
               | You're optimizing for the wrong thing here IMO. You
               | should optimize for decentralization. Without it, there
               | is no point to Bitcoin (or any cryptocurrency for that
               | matter). Increasing the block size won't solve the
               | inherent problems with scaling the bitcoin blockchain.
               | The only thing it will end up doing is push the can down
               | the road and result in less full nodes running on the
               | network.
               | 
               | The solution is of course to not increase the block size
               | but to scale in other ways, like for example the
               | Lightning Network.
        
               | dale_glass wrote:
               | The size of the blockchain right now is 390GB. It grows
               | at 144MB/day. You can get a 2TB hard disk for $50 right
               | now, and it'll be enough for 30 years more.
               | 
               | 1 MB blocks take 2 minutes and 30 seconds on at 56 Kbps,
               | which means you can keep up with the blockchain on a
               | freaking dial-up modem.
               | 
               | I'm not seeing exactly where the problem is here, and in
               | what scenario would somebody go "Gee, I'd love to run a
               | full node, if only it took something less amazing than a
               | computer I can find lying in the garbage for free".
               | 
               | If you want more nodes what you need instead is
               | incentives to run a node. Give people some reason to run
               | one other than that it provides some nebulous benefit to
               | the network, and so it's a good thing to run this out of
               | the goodness of their hearts.
        
           | simiones wrote:
           | Sure, but it is very easy for the miners to also run full
           | nodes and validate whatever they want - much easier than it
           | is for someone running a full node to also mine (at any
           | realistic hash rate). So miners can more or less trivially
           | flood the network with full nodes that validate their
           | preferred chains.
           | 
           | > This is why there was such a vicious fight about block
           | size: the side which won the mindshare and economic value
           | fought for a small blockchain so that running a full node
           | remains feasible forever.
           | 
           | This is a tangent, but I wonder how this squares with the
           | people claiming that Bitcoin's (terrible, horrible, no good,
           | very bad) transaction rate is not limited by design, just by
           | some temporary politics.
        
             | samatman wrote:
             | What you're describing is a fork, clearly.
             | 
             | The assertion that miners can unilaterally fork and get
             | away with it hasn't been backed up in practice. The
             | creation of a whole bunch of brand-new full nodes which do
             | something besides validate Bitcoin is the creation of
             | something other than Bitcoin. Happens with reasonable
             | frequency, just not the way you've described it.
        
               | simiones wrote:
               | Right now the Bitcoin network consists of ~59,000 nodes
               | (according to the article), running various versions of
               | the Bitcoin software, implementing the same protocol.
               | 
               | If the biggest mining pools were to launch ~100,000 nodes
               | of their own, initially running the exact same software
               | as the other 59k nodes (until they get some reputation)
               | and then modifying the software to allow larger blocks,
               | that they would start sending to the network as well,
               | what would prevent them from effectively changing what
               | Bitcoin is, leaving the current nodes as a legacy fork?
               | Especially if they were doing this together with the
               | Bitcoin devs?
               | 
               | Edit: more realistically, there are far fewer popular
               | nodes, so the miners would have to create a much smaller
               | number of nodes to achieve this effect.
        
               | samatman wrote:
               | What you would then have is 100,000 nodes running one
               | piece of software, and 59k which are doing exactly what
               | they were doing, and in your scenario, the 100k chain
               | also has a higher hash rate.
               | 
               | What happens next is a social phenomenon. No one knows.
               | But which chain is original is perfectly clear: it's the
               | the 59k chain, which will still be mining blocks, and it
               | all comes down to who wants to use which one more.
               | 
               | But it is emphatically not the case that a majority of
               | validators can force a minority of validators to choose a
               | new protocol. It's nothing like mining.
        
               | horsawlarway wrote:
               | > But it is emphatically not the case that a majority of
               | validators can force a minority of validators to choose a
               | new protocol. It's nothing like mining.
               | 
               | Define "force".
               | 
               | Because to me - if you are on a chain that has no future
               | (as in the fork has more resources, better hash rate,
               | better social support) then while you can continue to use
               | the original, the odds that it holds any value is
               | basically zero.
               | 
               | Same is true in the inverse - creating a fork and then
               | expecting to be able to move any significant value off
               | the original chain, when the original chain holds better
               | social support and more resources, is usually folly.
               | 
               | Take bitcoin cash - which is a great example of this.
               | 
               | They split in 2017 and began trading at ~240 USD to
               | bitcoins ~2700 USD. So they started with the assumption
               | that their fork had roughly 1/10 of the value of bitcoin.
               | Today they trade at 119 USD, to bitcoins 21170 USD (and
               | this is after the HUGE drop over the last month): Roughly
               | 1/200th the price.
               | 
               | Further - I strongly suspect that the reason BCH is still
               | worth anything at all is that we're well into a crypto
               | bubble - there are FAR too many completely worthless
               | coins floating around that serve absolutely no purpose
               | and still trade at ridiculous nominal USD values. The
               | fact that a usable chain forked from BTC for genuine
               | technical reasons (and a social disagreement over segwit)
               | drops so much value is a BAD sign for that group of
               | original folks on the 59k chain.
               | 
               | They can certainly keep mining away on that chain, and if
               | the goal is to still facilitate exchange only in that
               | original chain, they're fine. The second they need to get
               | off that chain and on to something else (whether it's
               | another coin or USD) then they're probably fucked - their
               | chain won't have held value, because value is a social
               | construct, not a number on a chain.
        
               | hnthrow1010 wrote:
               | >there are FAR too many completely worthless coins
               | floating around that serve absolutely no purpose and
               | still trade at ridiculous nominal USD values
               | 
               | Correction: No cryptocoins have any value or serve any
               | purpose, besides gambling and fraud. It's scams and wash
               | trading all the way down. I have still yet to see a
               | single valid use for blockchains that actually requires
               | this inbuilt mechanism, where the participants pump the
               | value of some token that serves as payment access to the
               | chain. The whole point of any of them using a blockchain
               | is apparently to take something that serves no purpose
               | and trade it at ridiculous values.
        
               | kevinak wrote:
               | This is just your opinion, and wow is it a privileged
               | take. Of course there is value in being able to trade
               | with whoever you want, regardless of jurisdiction. Just
               | because YOU do not see the value doesn't mean it's not
               | there.
        
               | hnthrow1010 wrote:
               | >being able to trade with whoever you want, regardless of
               | jurisdiction
               | 
               | That has absolutely nothing to do with blockchains at
               | all. Blockchains do not enable that, they have never
               | enabled it. You can indeed build a service that does that
               | with blockchains, but you can also build it without them.
               | Black markets existed for a very long time before bitcoin
               | was created.
               | 
               | If you're suggesting there is value in having totally
               | unregulated unrestricted trade, then no, I would still
               | have to say I don't see value in that. There is actually
               | negative value in allowing people to trade illegal
               | weapons, or trafficked humans, or counterfeit products,
               | or contract murders, or tainted animal products that
               | infect humanity with a plague, and so on... you get the
               | picture. These things are actively destructive to a
               | functioning society and market. It's even more of a
               | privileged take to try and suggest that these things
               | don't exist or won't happen if everyone can just trade
               | whatever they want without any restrictions whatsoever.
               | 
               | Edit: I'm thinking about this a bit, and it's really
               | insulting to be told I have a privileged take when in the
               | past several years myself and my family members and
               | friends have been actively harmed by ransomware and
               | crypto scams. It's not nice to kick someone when they're
               | down. In my case, the people evading jurisdictions were
               | doing it entirely to harm me. I'm really not seeing how
               | I'm supposed to be the privileged one.
        
               | horsawlarway wrote:
               | I mean - I mostly agree (I'm fairly clear about my
               | distaste for the current crypto market in many of my
               | comments).
               | 
               | That said - there is a floor value for a single coin that
               | captures the dark market space. The original use-case for
               | crypto is still there: There are folks who want to
               | exchange stored value for black market goods, in a scope
               | where government regulation is already assumed to be
               | absent because the goods being exchanged are forbidden
               | items.
               | 
               | This is basically what bitcoin was originally. It kept a
               | fairly stable price point around the single dollar mark
               | for use on the silk road ~2010/2011. The problem is that
               | folks started noticing that any time the media talked
               | about it, the price would spike. And that started the
               | whole rollercoaster of speculation that I find absolutely
               | immoral and greedy, that ruined the whole thing.
               | 
               | So basically - amend your comment to "besides gambling
               | and fraud and dark market exchange" and I'd agree.
        
             | olalonde wrote:
             | You are misunderstanding the meaning and purpose of running
             | a full node. Coinbase[0] runs a full node to validate
             | transactions. If miners start mining blocks that Coinbase
             | considers invalid, Coinbase will reject the transactions.
             | The number of full nodes on the network is more or less
             | irrelevant, what matters is your own node.
             | 
             | [0] You can replace Coinbase here with pretty much any
             | Bitcoin participant, including individual users.
        
               | simiones wrote:
               | If the largest miners switch to emitting larger blocks,
               | and Coinbase starts receiving almost exclusively invalid
               | nodes, what will they do next?
               | 
               | What if Binance starts accepting these blocks, and now
               | users have some BTC balance on Binance, and another on
               | Coinbase?
        
               | olalonde wrote:
               | We don't have to speculate, it has happened multiple
               | times already[0]. What happens is the hard forks are
               | either ignored or they are supported but under a
               | different name to avoid confusion (e.g. Bitcoin Cash,
               | Bitcoin SV, etc.). The only way I could imagine a hard
               | fork succeeding (e.g. retain the "Bitcoin" name) is if it
               | if it had an overwhelming community consensus, not only
               | from miners but also from users (like Coinbase).
               | 
               | [0] https://en.wikipedia.org/wiki/List_of_bitcoin_forks
        
         | DennisP wrote:
         | Ethereum has five independent execution clients, five
         | independent staking clients, and an open community of
         | researchers.
        
           | eldenwrong wrote:
           | And one Infura node to bind them all
        
             | DennisP wrote:
             | Any Ethereum node can talk to the network, and runs on a
             | modest home computer. Infura is popular but not everyone
             | uses it, and it's easy to replace.
        
         | loopdoend wrote:
         | I was wondering how Ethereum founder Vitalik Buterin is able to
         | walk around without a security detail, going on extensive
         | backpacking trips, what if someone steals his keys?
         | 
         | He'd just fork the entire blockchain.
         | 
         | Normal users don't have that luxury.
        
           | chrisco255 wrote:
           | No. Any fork requires a consensus among the community. While
           | it was possible to fork Ethereum for the DAO hack in 2016
           | (note the DAO hack had affected 30% of all ETH in
           | circulation), a lot has changed in the Ethereum ecosystem
           | since then and break-off forks do not happen willy nilly.
           | Besides all of the applications that need consistent state to
           | make sense (such as USD-backed stable coins), you need a
           | coalition of developers, miners, and community members to
           | back it. No one in their right mind carries their private
           | keys on a backpacking trip.
        
           | q-big wrote:
           | > He'd just fork the entire blockchain.
           | 
           | > Normal users don't have that luxury.
           | 
           | Everybody else can fork the entire blockchain, too. The
           | difference is that if a "normal user" does such a fork,
           | hardly anyone does care. The central difference rather is
           | that the trust and authority that Vitalik Buterin holds - if
           | he does a decision, it is accepted by and large.
           | 
           | The question that you should rather ask is: why do so many
           | people involved in Ethereum have so much trust in Vitalik
           | Buterin's authority and decisions?
        
             | chrisco255 wrote:
             | Main reason is Vitalik is one of the brightest minds in
             | crypto. He's a 10 year veteran of the space and a genius.
             | 
             | But no, even Vitalik could not get a split off fork done
             | unless it was something with major security implications
             | for the whole Ethereum ecosystem.
        
               | UncleMeat wrote:
               | So genius that both EVM and Solidity have huge unforced
               | footguns that have caused gazillions of dollars in
               | damage.
        
             | yokem55 wrote:
             | There are numerous instances where Buterin's suggestions
             | have not been just accepted at face value. He's an
             | influential voice, but is no dictator.
        
           | faraggi wrote:
           | This is such an ignorant and factually wrong comment.
        
             | walls wrote:
             | He literally did this after the DAO hack.
        
               | jjulius wrote:
               | I'm as "fuck cryptocurrency/NFTs" as the next guy, but
               | that's not accurate. As others have said, forks require
               | community consensus, not just the decision of a single
               | individual. Regarding the specific fork you're referring
               | to (italicized emphasis is mine):
               | 
               | >It was initially unclear as to whether the fork would be
               | executed. Though it was proposed by Ethereum developers,
               | they did not have the unilateral power to implement the
               | change. _Miners, exchanges, and node operators also had
               | to agree to update their software_. After more heated
               | debate in public forums, on July 20, 2016, at block
               | 192,000, the Ethereum hard fork was implemented.
               | 
               | https://www.gemini.com/cryptopedia/the-dao-hack-
               | makerdao#sec...
        
               | walls wrote:
               | The crucial question, to me, is: would the fork have
               | happened if Vitalik had not been part of the DAO? I don't
               | think there's any chance he would have entertained that.
               | 
               | There have been many large ETH compromises since then,
               | and the idea of forking for any of them would be
               | considered outrageous.
        
               | yokem55 wrote:
               | One of the main reasons it went through is because there
               | was 'only' one losing party - the hacker, and multiple
               | winning parties (developers and investors in the DAO). A
               | couple years later when the parity mutlisig was hacked
               | such that the funds (150K eth from an ICO) were
               | 'permanently locked', the proposal to unlock the funds
               | via hardfork was rejected. More or less specifically
               | because it would only benefit a very small subset of
               | parties, while leaving the frozen funds in place meant
               | the rest of the chain benefited from the effective
               | reduction of eth supply. Since then no one else has
               | seriously proposed forks to move funds out of protocol.
        
               | joshcryer wrote:
               | What's crazy is they never "fixed" The DAO "bug."
               | Reentrancy is a feature of Solidity. They just tell
               | people to make sure to do exception checking for it.
               | Which of course makes contracts bloated. Which in turn
               | makes contracts cost more in gas fees. So every now and
               | again a Defi will be attacked by the very, same, thing,
               | that got The DAO, because they didn't put in expensive
               | reentrancy checks. Couple of recent examples:
               | https://ambcrypto.com/how-these-two-defi-protocols-fell-
               | prey...
        
               | UncleMeat wrote:
               | Yup. The combo of "this is hyper critical financial code"
               | and "every extra instruction to check invariants is very
               | expensive" are two fundamentally opposed ideas and will
               | cause pain forever.
        
               | bsamuels wrote:
               | Vitalik was not part of the DAO, and the Ethereum
               | Foundation took an extremely hands-off approach to the
               | DAO hack.
               | 
               | This is pretty well documented in the Cryptopians book;
               | the DAO hard fork was driven almost exclusively by people
               | outside the EF.
        
         | carlosdp wrote:
         | > The developers aren't decentralized at all, they typically
         | are a single, small team with some sort of leader. They can
         | make a lot of decisions almost unilaterally.
         | 
         | That's painting everyone with the same brush...
         | 
         | It may be true for many projects, but the second largest
         | blockchain (by marketcap), Ethereum, has like 10 independent
         | client teams and a strong concentration on client diversity
         | [1].
         | 
         | The media likes to paint Vitalik (one of the original founders)
         | as the "leader" of Ethereum, but everyone that's actually
         | working in Ethereum knows that he's at best an advisor these
         | days, and has intentionally taken a back seat in terms of
         | leadership to avoid the very effect you are describing.
         | 
         | > And very far below that is everyone else. You can run your
         | "full node", but most nobody cares. Miners decide what goes or
         | doesn't on the network.
         | 
         | > And that's why Bitcoin is the way it is. Back when fees rose
         | to $50/transaction because the capacity was overwhelmed...
         | 
         | That is not why transaction fees are high... and miners do not
         | decide what goes or doesn't on the network. That's a huge
         | misconception.
         | 
         | Transaction fees are driven by demand, plain and simple. Demand
         | is high in a scarce blockspace, so the fee goes up to keep the
         | network stable.
         | 
         | Also, miners can't decide to just change the rules, that's a
         | big misconception of the Sybil problem further driven by
         | popular media. The rules are the rules, if miners don't follow
         | them, clients (full or light) won't follow that chain, period.
         | 
         | Even if 50%+ of miners colluded, all they could do is prevent a
         | consensus from forming (called "censorship"), so basically a
         | DDoS. They _cannot_ change the rules and  "trick" clients into
         | following them, as it is often portrayed!
         | 
         | If you're referring to miners having influence on what the
         | rules are, as in influence over development, that's been tried
         | and failed multiple times on multiple networks. In reality,
         | devs and companies/user sentiment drives the majority of
         | "social consensus".
         | 
         | If you need evidence of that, Ethereum's switch to PoS will
         | eliminate mining, and yet it's still happening. For a past
         | example, EIP-1559 was opposed by many large mining pools, still
         | happened (because it improved _user_ experience by making gas
         | fees more predictable  / reducing failed transactions -- in
         | direct contradiction to your point).
         | 
         | [1] https://clientdiversity.org/
        
           | georgeecollins wrote:
           | >> If you need evidence of that, Ethereum's switch to PoS
           | will eliminate mining, and yet it's still happening.
           | 
           | This has been delayed, and sometimes people say it is delayed
           | because the miners are against it. It seems very important to
           | people who are thinking about doing projects with Etherium
           | because it will be based on PoS. Hoenstly, I don't know
           | anything about this.
           | 
           | Here is my question(s) to the smart people on HN: Could
           | miners or others with financial interest slow the switch to
           | PoS for Etherium? How would I be able to judge if that is
           | happening?
        
             | yokem55 wrote:
             | No.
             | 
             | The switch to POS is entirely a socially initiated hard
             | fork being built by Eth holders, users and developers. The
             | miners who don't want to play along are effectively being
             | fired. And there is a lot of economic incentive to get that
             | fork done - mining is a really expensive way to generate
             | consensus on a blockchain. What miners earn via block
             | rewards is coming out of the pockets of other eth holders
             | because of the coin's inflation. Ethereum will be able to
             | reduce it's issuance/inflation by roughly 10x in the
             | switch.
             | 
             | The starting point was launching the beacon chain back in
             | December 2020, a separate chain designed to provide
             | consensus and validation of mainnet ethereum in the
             | (hopefully near) future, whose validating participants fund
             | their deposits through what is just a normal contract on
             | mainnet ethereum. From there that beacon chain has been
             | refined and built into a protocol with multiple
             | implementations, and had its stability monitored and
             | tested.
             | 
             | From here, it's just a matter of forking mainnet ethereum
             | into using the beacon chain as its consensus provider and
             | ignoring the miners. And that step is pretty deep into the
             | final testing phases using ethereum's long running testnets
             | to run through the 'merge' at it is called.
        
             | carlosdp wrote:
             | > This has been delayed, and sometimes people say it is
             | delayed because the miners are against it.
             | 
             | They can say that all they want, there's 0 actual evidence
             | of that. It's been delayed a bunch because it's an
             | incredibly difficult thing to do for a network operating
             | trillions of $ in transaction value.
             | 
             | All indications are at the moment that it will happen
             | around September, but definitely this year. The big test
             | (doing the PoS switch on the most similar testnet) was
             | completed successfully last week!
             | 
             | > Could miners or others with financial interest slow the
             | switch to PoS for Etherium? How would I be able to judge if
             | that is happening?
             | 
             | There are theoretical ways, but in practice it's not all
             | that practical, because ultimately what matters is the
             | "fork" developers and users want to follow. There's a
             | negative incentive for miners to do anything disruptive
             | because it could have an effect on the value of the tokens
             | they already hold.
             | 
             | Additionally, Ethereum has a built-in "difficulty bomb",
             | which basically ensures that a network upgrade happens at a
             | certain cadence, which gives impetus for miners to follow
             | new upgrades or no new ETH will be generated anyways past a
             | certain point.
        
             | DennisP wrote:
             | Financial interests push heavily towards PoS. Ten percent
             | of all ETH is already deposited in the PoS network
             | (currently running in parallel), and can't be withdrawn
             | before the merge happens. The development teams were
             | granted staked ETH by the EF, and can't withdraw it before
             | the merge happens. All ETH holders are likely to benefit
             | from the PoS merge, which will reduce issuance to the point
             | where the ETH supply will begin to shrink because 90% of
             | the fees are burned.
        
         | q-big wrote:
         | Everybody who is insanely dissatisfied about the direction some
         | blockchain develops into can drum up a following and do a hard
         | fork of the blockchain if they desire.
        
           | zaphar wrote:
           | This is theoretically true and in practice false. It comes up
           | every time and every time no one has an answer for what the
           | little guy can in-practice actually do that will be
           | successful.
        
             | landemva wrote:
             | There are several facets of 'success', and they compete
             | with each other. If a user defines success as cheap
             | transactions, there are blockchains for that.
        
           | UncleMeat wrote:
           | The premise is that at some point one of these chains will
           | win. Forking btc will be no more meaningful than forking usd.
        
           | dale_glass wrote:
           | It doesn't really solve the problem satisfactorily.
           | 
           | Somebody still has to develop the software. The end result is
           | a single download, produced by some form of authority. And
           | typically there's one project, with one group controlling it.
           | 
           | And miners are more or less the same everywhere, they want to
           | make a profit.
           | 
           | You can get somewhat better. You can find a dev group that
           | aligns with your interests. Maybe you can even find a
           | cryptocurrency where there are multiple independent
           | implementations led by multiple groups with none being the
           | clear winner.
           | 
           | But that's an unstable situation. The dynamics of a dev team
           | can shift as people come and go. Balance is easily broken, if
           | a project loses steam, or one becomes the default and gains
           | overwhelming popularity, and you're back to having a single
           | group in effective control.
           | 
           | You can migrate from one system to another, but any
           | conversion has costs to it, both in terms of money and
           | knowledge, attention and time resources.
           | 
           | This libertarian utopia seems very much like some sort of
           | bureaucratic hell to me. To exist in such a society without
           | getting royally screwed you have to invest immense amounts of
           | your time to pay attention to everything and correctly and
           | prompty react to it. You go on vacation for a couple weeks,
           | and oops, suddenly the dev team is changing the rules from
           | under you.
        
             | tromp wrote:
             | A properly decentralized project has multiple
             | implementations, and a formal process for changing the
             | consensus model. This requires the equivalent of an RFC
             | (Request for Comments, or Bitcoin Improvement Proposal in
             | case of Bitcoin) to be written, motivating and detailing
             | the changes, followed by months long discussion to see if
             | there is overwhelming support for, and few downsides to,
             | the changes. Meanwhile, the changes need to be implemented
             | on all existing clients with extensive documentation and
             | tests and be exercised on test-nets to see if all goes
             | well. Finally, a supermajority of miners as well as
             | economic nodes (such as exchanges) need to be convinced the
             | changes are for the better, and then an activation can be
             | planned on main-net that could take several more months to
             | lock in first. Chains where this process can be bypassed or
             | severely shortened don't deserve to be called
             | decentralized.
        
               | dane-pgp wrote:
               | > a supermajority of miners as well as economic nodes
               | (such as exchanges)
               | 
               | Is there a formal way of defining this?
               | 
               | Maybe it's possible to at least define "a supermajority
               | X% of miners, weighted by blocks mined in the last Y
               | days" (for values X and Y that have previously reached a
               | consensus), but counting economic nodes in a way that is
               | Sybil-proof and globally consistent, seems like it's just
               | pushing the consensus problem somewhere else.
        
           | 8organicbits wrote:
           | I think you are underselling the difficulty, especially if
           | the goal is to out-compete the original chain, versus
           | creating yet another worthless chain.
        
         | tmalsburg2 wrote:
         | Yanis Varoufakis recently called crypto currencies "oligarchic"
         | which is very fitting. Quote:
         | 
         | "I do not believe that the... 'oligarchic,' by definition,
         | cryptocurrency like Bitcoin is ever going to replace
         | [conventional currency]. It shouldn't, it can't, and it would
         | be a nightmare if it did."
         | 
         | Full interview in which he also discusses his proposal for
         | cryptocurrencies run by central banks and why that's (according
         | to him) the way to go:
         | https://www.kitco.com/news/2022-05-27/Gold-and-Bitcoin-won-t...
        
           | boc wrote:
           | There's not really a word for it that I'm aware of, but
           | Crypto IMO is best described as an "Initialarchy", or rule by
           | the first people on the scene. Since almost every crypto
           | project starts with dirt cheap prices, the first people who
           | create or invest end up controlling the entire project given
           | that they have millions of coins or access to the devs.
           | 
           | Being first to the next hot project is almost all the matters
           | in the Crypto world.
        
         | jrm4 wrote:
         | Your analysis seems correct in theory -- but in practice, in
         | terms of "the things that actually affect people," you're
         | overwhelmingly missing that group that is in "3" that's easily
         | number one -- which is the whales who control the price?
        
         | Melatonic wrote:
         | This is assuming the developers are willing to act in the way
         | you are describing but with our ability to audit their work I
         | am not convinced that will necessarily happen.
        
       | forgotmypw17 wrote:
       | > Tor is now the largest network provider in Bitcoin; just about
       | 55% of Bitcoin nodes were addressable only via Tor (as of March
       | 2022). A malicious Tor exit node can modify or drop traffic.
       | 
       | I'm not sure if I understand this criticism. Is it not true that
       | if something is ONLY available via Tor, then exit nodes are NOT
       | used at all when accessing it, and all of the traffic is
       | encrypted with Tor's encryption layer?
        
         | sweetbitter wrote:
         | You are correct, the researchers just did not realize this.
        
       | ezoe wrote:
       | The article doesn't say the research pointed out that many users
       | aren't decentralized at all.
       | 
       | They don't run full-node. They relies on somebody else's SaaS.
        
       | sweetbitter wrote:
       | > Tor is now the largest network provider in Bitcoin; just about
       | 55% of Bitcoin nodes were addressable only via Tor (as of March
       | 2022). A malicious Tor exit node can modify or drop traffic.
       | 
       | Tor's onion services are end-to-end encrypted and do not use exit
       | nodes.
        
       | rdl wrote:
       | This is great research and if anything understates the case for
       | alarm; Bitcoin is one of the more-decentralized projects, and PoW
       | generally has some incentives for diverse hosting (if not network
       | layer). PoS systems often end up on AWS specifically, and
       | sometimes depend on some of the more niche AWS services -- an
       | outage (engineered or accidental) in those could cause easy
       | degradation and facilitate takeover.
        
         | latchkey wrote:
         | Actually, no. It isn't that great. A lot of people are
         | correcting specific points here in the comments.
         | 
         | > More than one in five Bitcoin nodes are running an old
         | version of the Bitcoin core client that is known to be
         | vulnerable.
         | 
         | This is brought out as an issue, but it really doesn't matter.
         | Being a large decentralized systems means that having nodes
         | which are at all sorts of different versions, can still work.
         | This is like saying that everyone has to be at the same web
         | browser version for websites to work.
         | 
         | The thing that matters is that the nodes that are used for
         | forming blocks (ie: the nodes the pools are running), are
         | updated.
        
       | manytree wrote:
       | Honestly there's a lot of valid points to be made here but the
       | actual report reads as if their intention was to prove
       | blockchains are insecure and centralized.
       | 
       | That is true for a lot of them, but true Nakamoto consensus is
       | not quite as fragile as they suggest it is.
       | 
       | They don't provide an analysis of the true cost of launching a
       | 51% attack.
       | 
       | Their assertions about the security risk of "altering the
       | software that nodes run" fail to mention how this is a voluntary
       | process which all node operators choose to undergo. If a
       | consensus emerges on the network or a subset of the network that
       | the changes are problematic, these dissenting node operators can
       | choose to hard fork. There will be few supporters of an obviously
       | malicious attack in the network, so it would be unable to gain
       | traction.
       | 
       | Their point about the number of entities in control of Bitcoin is
       | technically correct, because of the way that pooling works in
       | Bitcoin: many nodes send any propfs they find to one node, and
       | that one node writes to the blockchain. So, there is a definite
       | concentration of power. There are some in depth game theoretical
       | analyses of why this is unlikely to become a problem but in
       | general it is easy to imagine that, for instance, the US treasury
       | would not want to destroy trust in the USD.
       | 
       | Interestingly, Chia, a new proof of work blockchain which
       | launched a year ago, developed by Bram Cohen, has a unique and
       | innovative solution to pooling which does not result in
       | concentration of power: individual node operators submit proofs
       | to the network, not to the pool, and the pool receives a fraction
       | of the reward for minting a new block. Chia also has more full
       | nodes than any oher blockchain, including Bitcoin. At this point
       | it's relatively unknown however.
        
         | latchkey wrote:
         | > _They don't provide an analysis of the true cost of launching
         | a 51% attack._
         | 
         | Andreas Antonopoulos has done this many times already.
         | 
         | https://www.youtube.com/watch?v=ncPyMUfNyVM (one of my
         | favorites and only a couple minutes long)
         | 
         | https://www.youtube.com/watch?v=-ZTGmTjqXEU
         | 
         | https://www.youtube.com/watch?v=N-La8gyNVCI
         | 
         | https://www.youtube.com/watch?v=JDZVW4hri2g
        
           | ntbnt wrote:
           | From the first link: "Bitcoin has achieved a level of
           | comput[ational power] that no single nation state can
           | overthrow it through computation alone. The effort to do so
           | would require a massive covert operation of chip fabrication.
           | Then, the coordinated assault would give them over the next
           | block for 10 minutes, until we kick those bastards off the
           | network... they would be revealed, they would have lost
           | billions of dollars doing this, and all they would have got
           | was a double spend"
        
             | ahtihn wrote:
             | How are you going to "kick them off the network"? There's
             | no way to tell where the hashpower is coming from.
        
               | manytree wrote:
               | Yeah it's a pretty glib answer. Not clear at all how you
               | kick them off the network.
               | 
               | Perhaps he's conflating some kind of protocol exploit
               | that could be patched against with a 51% attack.
        
         | vngzs wrote:
         | The subtext of the DARPA funding makes me think the purpose of
         | this paper is to analyze whether governments can disrupt,
         | block, or compromise cryptocurrencies. The conclusions make
         | some more sense in that light. Still, I think they fail to
         | address several mitigating factors for each of the issues,
         | which weakens the overall message:
         | 
         | (1) Mining pools are not even remotely static. In fact, they
         | gain/lose marketshare _very_ quickly, and when problems are
         | discovered, miners actually move. Therefore, it would have to
         | be shown that these pools can be disrupted _clandestinely_ ,
         | otherwise an attempted takeover/51% attack would just cause a
         | rebalancing of the pools. To better understand this, it's good
         | to visualize it; here's a graph of changes to miner pool
         | distribution over time: [0]
         | 
         | (2) 51% attacks permit double-spend, but many guarantees
         | persist in the light of 51% attacks - nobody can invent coins
         | they don't have with a 51% attack; they can just undo
         | transactions that were assumed to be settled [1].
         | 
         | (3) Software centralization and the implied lack of
         | immutability is subject to the voting influences of node
         | operators; maintainers can't just do whatever they want (in
         | other words, backdoors would probably need to be bugdoors, else
         | they would not be deployed and therefore _de facto_ rejected).
         | Taking Bitcoin as an example, many BIPs have been withdrawn or
         | rejected, either early in the development process or later by
         | the community refusing to adopt releases they don 't support:
         | [2]. And you can see this process at work in the block size
         | debates and ultimate resolution [3].
         | 
         | ISP centrality and the vulnerability of the network to
         | malicious Tor exit nodes is the most interesting point to me.
         | Miners can go switch pools, and node operators can band
         | together & refuse to update to new software that does things
         | they disagree with. But can node operators/miners switch ISPs
         | quickly and easily? Not really. There's virtually no free
         | market competition among ISPs, so people can't freely switch
         | ISPs if theirs starts inserting arbitrary latency into Bitcoin
         | traffic. We probably need some ways to operate nodes/miners
         | that are less sensitive to corrupt ISP disruption.
         | 
         | Encrypting BTC P2P traffic and developing strategies for
         | operating nodes/miners behind anti-censorship software like
         | ShadowSocks should be high-priority.
         | 
         | [0]: https://public.flourish.studio/visualisation/2879848/
         | 
         | [1]: "Even a 51% attacker cannot propose a block that takes
         | away your ETH, because such a block would violate the protocol
         | rules and so it would get rejected by the network. Even if 99%
         | of the hashpower or stake wants to take away your ETH, everyone
         | running a node would just follow the chain with the remaining
         | 1%, because only its blocks follow the protocol rules. More
         | generally, if you have an application on Ethereum, then a 51%
         | attack could censor or revert it for some time, but what comes
         | out at the end is a consistent state." - Vitalik,
         | https://old.reddit.com/r/ethereum/comments/rwojtk/ama_we_are...
         | 
         | [2]:
         | https://en.wikipedia.org/wiki/Bitcoin_Improvement_Proposals#...
         | 
         | [3]: https://en.bitcoin.it/wiki/Block_size_limit_controversy
        
           | Melatonic wrote:
           | I think this is the answer - everyone is saying that DARPA is
           | biased and government funded and thus trying to steer people
           | away from Crypto - but I think this is a good read. If a few
           | big ISP control a huge portion of the traffic (normally big
           | competing entities) and we know that many (maybe most) big
           | ISP's are subservient to the governments they run under then
           | it follows that a government could potentially majorly
           | disrupt/control cryptocurrencies.
        
       | jrm4 wrote:
       | Yup, I've come to realize that the word(s)
       | "centralized/decentralized" are doing way too much heavy-lifting
       | in these discussions, and that examining the details is very
       | important.
       | 
       | When you use one of these words, you have to immediately ask --
       | "the power to do WHAT, exactly?" As in, compare to the question
       | e.g. "Is Tesla centralized w/r/t Elon Musk?" You can't
       | meaningfully answer the question with yes or no, and this gets
       | even more complicated with many things in crypto, especially with
       | (the extremely stupidly named) "Smart Contract" as a part of the
       | game.
        
       | avnigo wrote:
       | I found it interesting reading the blog post, but delving into
       | the report, some areas didn't seem as straightforward.
       | 
       | I expect to get some flak for saying this, and I don't mean to be
       | cynical, but it's interesting how the table on p. 9 of the report
       | lists Solana with a relatively high Nakamoto coefficient (19 to
       | Bitcoin's 4), given the recent events with Solana [0].
       | 
       | From p. 1 of the report, emphasis my own:
       | 
       | > Trail of Bits also operates a center of excellence for
       | blockchain security. Notable projects include audits of Algorand,
       | Bitcoin SV, Chainlink, Compound, Cosmos, Ethereum 2.0, MakerDAO,
       | Matic, Polkadot, _Solana_ , Uniswap, Web3, and Zcash.
       | 
       | Some of those notable projects are fervently anti-bitcoin, so
       | while some criticisms and concerns may appear to be valid at a
       | first glance, I don't think it can be said to be without bias.
       | 
       | [0]: https://www.coindesk.com/tech/2022/06/19/solana-defi-
       | platfor...
        
         | woodruffw wrote:
         | Trail of Bits has no pro- or anti- position when it comes to
         | various cryptocurrency projects. Moreover, this research was
         | entirely funded by DARPA, and was not assisted by any project.
         | Finally, the results only address decentralization, and not the
         | myriad other ways in which these schemes can be economically,
         | politically, or cryptographically unsound.
         | 
         | FD: My employer.
        
           | latchkey wrote:
           | > FD: My employer.
           | 
           | Oh, that's interesting.
           | 
           | Did you write this blog post too?
           | 
           | You've been pretty anti-crypto in previous comments here.
        
             | woodruffw wrote:
             | > Did you write this blog post too?
             | 
             | No. I also did not work on the research in the post.
             | 
             | My positions on cryptocurrencies don't necessarily reflect
             | my employer's opinions. I don't work on cryptocurrencies,
             | have no professional or hobbyist interest in them, and have
             | neither direct nor derived financial positions in/against
             | them.
        
               | latchkey wrote:
               | How come the paper doesn't provide similar disclosures
               | for the list of preparers?
        
         | etherael wrote:
         | There are very good reasons to be fervently anti-BTC given its
         | history since 2017.
        
         | Anon1096 wrote:
         | That was Solend, not Solana. The concern was just that a
         | liquidation of that scale would significantly move the market.
        
       | ncmncm wrote:
       | I am always impressed with Trail of Bits work.
        
       | m00dy wrote:
       | >>Key Findings
       | 
       | >>The number of entities sufficient to disrupt a blockchain is
       | relatively low: four for Bitcoin, two for Ethereum, and less than
       | a dozen for most proof-of-stake networks.
       | 
       | then why we haven't seen a Bitcoin hack before ? Maybe it is the
       | most secured system.
        
         | danamit wrote:
         | They are talking here about mining pools I suppose since the
         | biggest 4 mining pools account for more than 50% of validated
         | blocks.
         | 
         | Also the word is "disrupt" so it means some time of chaos, the
         | mining pools never tried to disrupt Bitcoin because they have
         | no incentive to do so.
        
           | JamesSwift wrote:
           | That assumes they are economically motivated. As we've seen
           | in recent attacks on other coins, if its a possibility for
           | someone to burn the system down out of spite/malice then the
           | economic incentive doesn't matter.
        
             | danamit wrote:
             | 1. If half of Bitcoin users (hashrate-wise) wanted to
             | disrupt the network out of malice ignoring their economic
             | wellbeing, say a movement similar to GME/WSB, then they can
             | disrupt it.
             | 
             | 2. We can go into lower levels and find a number of ISPs
             | specially level 1 ones being able to disrupt the Bitcoin
             | network. Some other single points of failure I can imagine
             | are common routers firmware.
             | 
             | Can Bitcoin never be disrupted? no, does it have mechanisms
             | in place that make it unlikely to be disrupted? yes.
        
           | m00dy wrote:
           | it is nothing about incentive. Let's say a mining pool wants
           | to disrupt the bitcoin network, do you think that pool will
           | keep its hashrate ? I don't think so.
        
             | danamit wrote:
             | Disrupt is creating chaos short term, I don't imagine it to
             | last more than 1 hour, but that's enough to call it
             | disrupt.
        
         | frabert wrote:
         | From the report,
         | 
         | > Even though these Nakamoto coefficients are relatively low,
         | some might argue that exploiting them to attack a blockchain
         | would be prohibitively expensive. While this may be true for
         | individuals, the actors incentivized to perpetrate these
         | attacks include operators of competing currencies and nation-
         | states who have the requisite resources. Perverse incentives
         | can exist with blockchains in the same way that the relative
         | values of fiat currencies can be manipulated.
        
           | mypastself wrote:
           | Competing currencies are unlikely to profit from Bitcoin's
           | downfall in this scenario, given how much the entire space
           | relies on its reputation.
           | 
           | Nation-states, on the other hand, are the more credible
           | threat. Just because none of them has yet found it a big
           | enough threat to expend the required resources, doesn't mean
           | it can't happen.
           | 
           | I feel like the more Bitcoin is used for its original
           | intended purpose rather than merely speculation, the more
           | likely it is to be attacked by such actors.
        
           | bhaak wrote:
           | I think it's more complex than the report poses it.
           | 
           | It's not as if those mentioned entities always have complete
           | control over their mining hardware as those entities include
           | pool miners.
           | 
           | I think there's more that prevents an attack than just being
           | "prohibitively expensive".
        
         | Cthulhu_ wrote:
         | It really isn't, but that debate will quickly end up in a
         | discussion about the definition of 'secure'.
         | 
         | My take; people and organizations / exchanges have lost
         | billions. Maybe not on the blockchain itself, but a system is
         | only as strong as its weakest link, and the whole Bitcoin /
         | cryptocurrency system has a lot of weak links and little
         | backups.
         | 
         | I mean if my bank goes bankrupt the money I have in their
         | savings accounts is reimbursed. If my bank card gets stolen to
         | the point where they can withdraw money from it - or if I'm
         | made to withdraw money at gunpoint - I'll get the money back.
        
       | JonathanBeuys wrote:
       | What the article is missing is the incentive structure.
       | 
       | For example: "The number of entities sufficient to disrupt a
       | blockchain is relatively low: four for Bitcoin".
       | 
       | This probably refers to the 4 largest mining pools.
       | 
       | Yes, they could temporarily annoy some people by not processing
       | their transactions. But it would come at a giant cost to them.
       | They would be out of business quickly as miners can switch to a
       | different pool in minutes.
       | 
       | That is like saying the US economy is brittle because if Walmart,
       | Apple, Amazon and ExxonMobil would just send everybody home and
       | set their premises on fire, there would be a problem.
        
         | gitfan86 wrote:
         | But those companies only exist because the US regulatory
         | framework allows them to exist as long as they follow the
         | rules. If the CEO of Walmart sent out an email saying that
         | everyone was fired and that all stores should be demolished, he
         | would be fired by the board of directors within hours. Also
         | other executives would respond to the email telling everyone to
         | ignore the previous email while they see if the CEO was hacked.
         | 
         | The entire point of crypto is to bypass the regulatory
         | framework. In some cases that may make for a more robust system
         | in some cases it may not.
        
         | djschnei wrote:
         | Completely agree. It's impossible to inspect any aspect of
         | Bitcoin's design without considering its incentive structures.
         | They _are_ the innovation in my mind. Every blockchain
         | /crypto/Dao/<insert buzz word> forgoes one of Bitcoin's
         | perfectly balanced incentive structures in favor of some
         | "innovation" (speed, programability, founder/VC enrichment)
         | which _always_ inevitably leads to centralization and
         | exploitable risk somewhere in the system.
         | 
         | Every time it happens it hardens my opinion that a L1 should be
         | like the foundation of a building - it should have one job (be
         | hard money), it should be simply and elegantly designed, it
         | shouldn't have any cracks (a.k.a misaligned incentive
         | structures), it should evolve very slowly if at all, and it
         | should be designed to be built on top of. L1 exists to anchor
         | L1+N to the real world and that's it.
        
           | simiones wrote:
           | Bitcoin is a terrible foundation to build transaction
           | processing on, since it is extraordinarily slow - it would
           | fail to handle the needs of even a small village.
           | 
           | The "solution" of slapping something like LN on top of it is
           | "let's completely forgo all of Bitcoin's guarantees and build
           | something else; while still being hurt by Bitcoin's
           | cripplingly slow speed when creating our network".
           | 
           | Also, the incentive structures being discussed are only
           | meaningful as long as the miners believe that Bitcoin will
           | keep increasing in value. If it looks like BTC is dying, they
           | have every reason to try to squeeze the last few drops of
           | value from it by running an attack on it and running away
           | with what real money they can extract.
        
             | louloulou wrote:
             | Fedwire is a terrible foundation to build transaction
             | processing on, since it is extraordinarily slow - it would
             | fail to handle the needs of even a small village.
             | 
             | The "solution" of slapping something like banks on top of
             | it is "let's completely forgo all of the Fed's guarantees
             | and build something else; while still being hurt by
             | Fedwire's cripplingly slow speed when creating our
             | network".
             | 
             | Also, the incentive structures being discussed are only
             | meaningful as long as the Banks believe that the Fed will
             | keep increasing the money supply. If it looks like USD is
             | dying, they have every reason to try to squeeze the last
             | few drops of value from it by running an attack on it and
             | running away with what real money they can extract.
        
           | tromp wrote:
           | > simply and elegantly designed
           | 
           | I don't think Bitcoin qualifies as such. Sure, projects like
           | Ethereum are far more complex, but there are projects that
           | significantly improve on Bitcoin in simplicity and elegance.
           | Bitcoin script in particular is not that simple and full of
           | warts.
        
             | djschnei wrote:
             | Which projects are simply designed _to be hard money_?
        
               | tromp wrote:
               | That depends on what do you mean by hard money. A capped
               | supply?
        
             | jrm4 wrote:
             | I think _by definition_ it does, which is to say, its
             | popularity proves it. I just think there 's a hindsight
             | thing going on.
             | 
             | I liken Bitcoin to e.g. the Model T or the first grey brick
             | cellphones. It changes everything forever because it works
             | very well, but also is quickly improved upon and thus
             | eventually won't be that popular.
        
               | djschnei wrote:
               | No other system/project anchors a digital currency to the
               | physical world as effectively as Bitcoin. But I do agree,
               | eventually L2+ will be much more _popular_ , in so far as
               | much more people will interact with them. That's kind of
               | the idea. L2s will still always rely on L1 for its anchor
               | to the physical world (and thus physics).
        
               | jrm4 wrote:
               | I'm unfamiliar with L1 and L2 as presented here. Do these
               | both refer to the Bitcoin blockchain?
               | 
               | If so, no. I strongly predict Bitcoin, both the
               | blockchain and the currency will nearly, if not fully,
               | "die," as the Model T and grey phone have. Ethereum is
               | already much better at it's _core_ , and it's not hard to
               | think even Ethereum will be improved upon.
               | 
               | In the long run, literally all bitcoin has is history and
               | name recognition. Like the Model T, you will see it
               | revered like something in a museum, and also just about
               | nobody will actually use it.
        
               | tomputer wrote:
               | > Ethereum is already much better at it's core
               | 
               | What you and many others seem to overlook is first mover
               | advantage, network effects and most important: trust.
               | Bitcoin is not Yahoo or Facebook, it is not a company
               | product which has to improve and break things all the
               | time.
               | 
               | In the long run Bitcoin is a store of value. That
               | requires trust, which takes time. To gain trust over time
               | it has to move slow and steady because there can be no
               | mistakes.
               | 
               | When it comes to money and trust it is almost impossible
               | to get a second chance (see Terra UST). Just one mistake
               | could result in everyone distrusting Bitcoin.
        
               | jrm4 wrote:
               | What I think others overlook is that _in practice_ (and
               | despite what the retconners are trying to say about
               | bitcoin is gold or some nonsense) -- is that Bitcoin was
               | NOT designed to be a blockchain platform. It was designed
               | to be fungible currency. And it 's an excellent proof-of-
               | concept...but with severe flaws that will kill it,
               | especially in light of the fact that we're talking about
               | *open source software, which begs to be forked, and
               | effectively has been.
               | 
               | Your argument strikes me as very odd -- you seem to
               | suggest that nothing can beat Bitcoin in theory, but
               | Ethereum is already beating it in practice.
        
               | tomputer wrote:
               | > Your argument strikes me as very odd -- you seem to
               | suggest that nothing can beat Bitcoin in theory, but
               | Ethereum is already beating it in practice.
               | 
               | In theory everything is possible. I do not follow the
               | beating really. They can both exist with different use
               | cases.
               | 
               | Bitcoin wants to be digital gold (and money) and Ethereum
               | wants to be a smart contract world computer running
               | dapps. They solve different problems.
        
               | jrm4 wrote:
               | But Ethereum is a technically superior option for _both_
               | cases. It does what Bitcoin can 't do, but it also does
               | what Bitcoin does _better,_ and has a roadmap to
               | improvement beyond that. Bitcoin is still wildly slow and
               | destroys the environment, and Ethereum is on track to
               | mostly not do that, to say nothing of  "post-Eth"
               | projects like Pulsechain.
               | 
               | Now, I'm sure Bitcoin will enjoy name recognition for
               | some time, but in my experience, always bet on the tech.
        
         | etherael wrote:
         | It would be easier even than that, observe what happened in
         | 2017. Bitfinex said they would allocate the BTC ticker to the
         | present BTC chain _no matter what the hash power indicated was
         | the actual canonical chain_ and that was the end of it.
         | 
         | Contrary to popular belief, miners aren't choosing anything
         | when it comes to BTC. They're rubber stamping the decisions of
         | the BTC core developers, who are blessed by the exchanges such
         | as Bitfinex, and they are collecting fees on that rubber stamp.
        
           | JonathanBeuys wrote:
           | That sounds like the right thing to do?
           | 
           | Why would the hash power decide what is called BTC? If
           | Dogecoin some day attracts more hashing power than Bitcoin,
           | then Bitfinex is supposed to assign the BTC ticker to
           | Dogecoin?
        
             | jtc331 wrote:
             | Hash power in the context of potential forks in the BTC
             | chain, not a different coin.
        
               | ntoskrnl wrote:
               | You're both already explaining the reasoning through your
               | wording, "present BTC chain" and "potential forks". If
               | you fork a project, even if yours becomes more popular,
               | that doesn't mean you get to take over the original name.
        
               | etherael wrote:
               | > If you fork a project, even if yours becomes more
               | popular, that doesn't mean you get to take over the
               | original name.
               | 
               | That's exactly what happened with BTC. And yet almost
               | everybody calls it Bitcoin.
        
               | ntoskrnl wrote:
               | BCH changed the blocksize and thus became incompatible
               | with the original network. If you're claiming that the
               | project that kept the blocksize the same and remained
               | backwards compatible is the fork, then I'm done here and
               | I wish you the best of luck.
        
               | etherael wrote:
               | It was the original plan to change the blocksize all
               | along.
               | 
               |  _Satoshi said in 2009: "The existing Visa credit card
               | network processes about 15 million Internet purchases per
               | day worldwide. Bitcoin can already scale much larger than
               | that with existing hardware for a fraction of the cost.
               | It never really hits a scale ceiling. If you're
               | interested, I can go over the ways it would cope with
               | extreme size."_
               | 
               | Some latecoming BTC core devs cancelled that plan, with
               | zero justification, changed the consensus mechanism for
               | the chain from hashpower to fiat declaration by
               | fraudulent centralised exchange running a pump and dump
               | scam with fake money, and sabotaged the entire project in
               | the process into complete uselessness, and to this day
               | we're stuck with people who believe a fundamental
               | financial revolution is going to take place on a chain
               | that was forced to 4tx/second and get very angry,
               | confused or surprised when you point out that such a
               | change is clear and obvious sabotage.
               | 
               | If you're claiming otherwise, then I'm done here and I
               | wish you the best of luck.
        
             | pcthrowaway wrote:
             | I think you're missing some context about (what is now
             | called) Bitcoin Cash.
             | 
             | Look up the debate between big blockers and small blockers
             | if you're interested in learning more; a quick summary,
             | many people wanted larger block size so bitcoin could
             | process more transactions.
             | 
             | I believe several newer core developers staged a coup to
             | prevent this from happening, despite several of the longer-
             | term contributors being in favour of it. The original
             | contributors (sans satoshi, who was mostly inactive at this
             | point), had their access to the git repositories revoked.
             | 
             | This video goes into a bit more detail
             | (https://www.youtube.com/watch?v=XfcvX0P1b5g) but basically
             | the people opposing a larger blocksize had financial
             | incentives.. a lot were in bed with a company called
             | Blockstream which benefits from their development on
             | sidechains (now the lightning network). Had the block-size
             | been increased, Bitcoin would be much more useful as a
             | means of exchange (more transactions would be processed,
             | and they would be cheaper).
             | 
             | This is where Bitcoin Cash is now, but it doesn't get the
             | BTC ticker symbol because Bitfinex and other CEXes have a
             | lot of influence as well.
        
               | ntoskrnl wrote:
               | > Had the block-size been increased, Bitcoin would be
               | much more useful as a means of exchange (more
               | transactions would be processed, and they would be
               | cheaper).
               | 
               | Of course the flipside of this is that it would become
               | very expensive to run a node. Bitcoin's blockchain is
               | ~400 GB after 13 years. BCH has a 32x larger blocksize
               | cap, so we can extrapolate that if anyone actually used
               | that fork, it would grow a 12 TB blockchain over that
               | same period. As a result running a node would become
               | expensive and the network would become much less
               | decentralized (the very thing people are complaining
               | about in this thread!)
        
               | etherael wrote:
               | This would be true if the number being 32x'd was actually
               | high, but that is not true. It was 1 megabyte. 32
               | megabytes over ten minutes is not even 512kbps. Other
               | chains that process much more throughput, as well as BCH
               | itself, has been benchmarked on very modest hardware
               | pushing that boundary and higher.
               | 
               | Simple fact of the matter is that the whole justification
               | for the permanent 1mb limit was an outright indefensible
               | lie, pushed on idiots, and supported by censorship.
               | Nothing more, and nothing less.
        
             | barnbuilder wrote:
             | You're completely right.
             | 
             | Hashpower between chains is only relevant if they are
             | compatible (same consensus rules), as the accumulated proof
             | of work is used as an indicator of which chain should be
             | followed. Once a chain hard forks to alter the consensus
             | rules like Dogecoin, Bitcoin Cash, etc, there is no amount
             | of additional hashpower that would make up for the
             | incompatibility -- a node will simply ignore the invalid
             | blocks.
        
             | etherael wrote:
             | We and a group of partners run a restaurant together. One
             | day you decide to turn it into an apothecary for the
             | dispensation of poisons, and keep the name and pretend that
             | it's still a restaurant.
             | 
             | Any mechanism which rubber stamps the above process as
             | legitimate and collects a fee for doing so is corrupt,
             | letalone over the objections of an enormous fragment of
             | both customers and partners in the restaurant in question.
             | Lack of objection or approval from those whom the change is
             | in the interests of, or who are simply too ignorant to
             | understand what is going on, don't change that.
             | 
             | That is effectively what happened with BTC.
             | 
             | The way that it was supposed to work would be that the
             | hashpower would choose the canonical tip of the chain if
             | there were two conflicting ideas about what the chain
             | should actually be. BCH stuck to that ideal and through two
             | contentious and many more peaceable forks proceeded
             | according to it. BTC did not.
        
         | throwoutway wrote:
         | Yes they're incentivized not to, but when push comes to shove,
         | they can basically choose their own form of "truth" and
         | ignore/disrupt/revert transactions and others would need to
         | fork the chain. It's not a given which would succeed.
         | 
         | This has happened before
        
           | djschnei wrote:
           | Valid transactions are enforced by nodes, not miners (there
           | are WAY more nodes than mining pools). All of a miner's
           | incentives persuade them to mine on the longest chain, lest
           | they lose out on potential profits. A group of nodes and
           | miners can certainly fork if they please, but the network
           | simply won't care. e.g. BCH/BTC
        
           | JonathanBeuys wrote:
           | No need to fork the chain. Miners can just switch pools.
        
       | whatisweb3 wrote:
       | Some issues with this report:
       | 
       | > The challenge with using a blockchain is that one has to either
       | (a) accept its immutability and trust that the programmers did
       | not introduce a bug, or (b) permit upgradeable contracts or off-
       | chain code that share the same trust issues as a centralized
       | approach.
       | 
       | This paints the issue as binary, although there is more to it.
       | Look at the WETH contract in which we both (a) accept its
       | immutability and trust there are no bugs, but also (c) can
       | migrate to a fork at a later point if desired through social
       | consensus. There is another option (d) which is a less developed
       | area: governance models that are not entirely centralized, see
       | Uniswap and Aave.
       | 
       | > The number of entities sufficient to disrupt a blockchain is
       | relatively low: four for Bitcoin, two for Ethereum, and less than
       | a dozen for most proof-of-stake networks.
       | 
       | The Nakamoto coefficient relates to validator pools colluding to
       | form a 51% attack. In Ethereum PoS this count is a bit higher,
       | around 25-35[1]. Important to note the extreme costs of these
       | attacks, and the defense mechanisms of PoS. If enough validators
       | collude to 51% attack a PoS chain, users can follow a fork and
       | have the attackers coins burned. Attacker would have to
       | continually re-purchase coins to re-attack the new soft forks.[2]
       | 
       | > For a blockchain to be optimally distributed, there must be a
       | so-called Sybil cost. There is currently no known way to
       | implement Sybil costs in a permissionless blockchain like Bitcoin
       | or Ethereum without employing a centralized trusted third party
       | (TTP). Until a mechanism for enforcing Sybil costs without a TTP
       | is discovered, it will be almost impossible for permissionless
       | blockchains to achieve satisfactory decentralization.
       | 
       | This is based on the Kwon paper which defines "full
       | decentralization" as a set of specific numerical constraints, and
       | demonstrates that it is theoretically impossible for any
       | permissionless system currently known to mankind to satisfy these
       | constraints. Kwon makes no claims about whether this degree of
       | decentralization is "satisfactory" or even necessary for a
       | blockchain. A system that is distributed across thousands of
       | nodes and highly resistant to 51% attacks and collusion is likely
       | enough for it to be considered "decentralized" for practical
       | purposes.
       | 
       | [1]
       | https://shsr2001.github.io/beacondigest/notebooks/2021/07/19...
       | 
       | [2] https://vitalik.ca/general/2020/11/06/pos2020.html
        
       | tyoma wrote:
       | I would love to see a follow-up that addresses emergent
       | centralization due to winner-take-all or winner-take-most
       | dynamics. This is how we end up with monopolies/duopolies
       | elsewhere in the tech sector, and I suspect the same would hold
       | for blockchain.
        
       | greyface- wrote:
       | > The research to which this blog post refers was conducted by
       | Trail of Bits based upon work supported by DARPA under Contract
       | No. HR001120C0084
       | 
       | More info: https://govtribe.com/award/federal-contract-
       | award/definitive...
        
       | 8organicbits wrote:
       | > More than one in five Bitcoin nodes are running an old version
       | of the Bitcoin core client that is known to be vulnerable.
       | 
       | Patching software that is remotely accessible is a pretty basic
       | security measure. I suppose the risk of a hacked node is fairly
       | low, maybe about the same as a node that's run by a malicious
       | owner. Although exploiting nodes would extend the reach if a
       | malicious party.
        
       ___________________________________________________________________
       (page generated 2022-06-21 23:02 UTC)