Re: [Bitcoin-development] On OP_RETURN in upcoming 0.9 release

2014-02-28 Thread Warren Togami Jr.
On Thu, Feb 27, 2014 at 7:25 PM, Troy Benjegerdes ho...@hozed.org wrote:


 Either the transaction fees are sufficient to pay the cost for whatever
 random junk anyone wants to put there, or they are not, and if they are
 not, then I suggest you re-think the fee structure rather than trying
 to pre-regulate me putting 80 character pithy quotes in the blockhain.


https://github.com/litecoin-project/litecoin/commit/db4d8e21d99551bef4c807aa1534a074e4b7964d

In one way in particular, the transaction fees per kilobyte completely
failed to account for the actual cost to the network.  If Bitcoin had
adopted a common-sense rule like this, I would have had no reason to join
Litecoin development last year.  This is one of the few economic design
flaws that Satoshi overlooked in the original design.

As much as I personally hate the idea of data storage in the blockchain,
this at least discourages the creation of permanent UTXO.

Warren Togami
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Re: [Bitcoin-development] On OP_RETURN in upcoming 0.9 release

2014-02-28 Thread Mark Friedenbach
-BEGIN PGP SIGNED MESSAGE-
Hash: SHA1

Transaction fees are a DoS mitigating cost to the person making the
transaction, but they are generally not paid to the people who
actually incur costs in validating the blockchain. Actual transaction
processing costs are an externality that is completely unpaid for.

When I add a 1Kb transaction to the blockchain, there is an attached
fee which probabilistically goes to one of the miners. But every other
full node on the network also receives this transaction, processes it,
and adds it to local storage. From now until the heat death of the
universe that 1Kb of data will be redundantly stored and transmitted
to every single person who validates the block chain. None of these
countless people are reimbursed for their storage, bandwidth, and
processing costs. Not even a single satoshi.

Yes, transaction fees are broken. But it is their very nature which is
broken (sending coins to the miners, not the greater validator set),
and no little tweak like the one Warren links to will fix this.

But, in the absence of a reformed fee regime - which it is not clear
is even possible - one could at least make the hand-wavey argument
that people who validate the block chain receive benefit from it as a
payment network. Therefore processing of the block chain is paid for
by the utility it provides once fully synced.

However even this weak argument does not extend to general data
storage. If you want to put all of wikileaks or whatever in the block
chain, then you are extracting a rent from every full node which is
forced to process and store this data for eternity without
compensation or derived utility. You are extorting users of the
payment network into providing a storage service at no cost, because
the alternative (losing bitcoin as a payment network) would cost them
more.

That is not ethical behavior. That is not behavior which responsible
developers should allow in the reference client.

Mark

On 02/28/2014 06:42 AM, Warren Togami Jr. wrote:
 On Thu, Feb 27, 2014 at 7:25 PM, Troy Benjegerdes ho...@hozed.org 
 mailto:ho...@hozed.org wrote:
 
 
 Either the transaction fees are sufficient to pay the cost for
 whatever random junk anyone wants to put there, or they are not,
 and if they are not, then I suggest you re-think the fee structure
 rather than trying to pre-regulate me putting 80 character pithy
 quotes in the blockhain.
 
 
 https://github.com/litecoin-project/litecoin/commit/db4d8e21d99551bef4c807aa1534a074e4b7964d

  In one way in particular, the transaction fees per kilobyte
 completely failed to account for the actual cost to the network.
 If Bitcoin had adopted a common-sense rule like this, I would have
 had no reason to join Litecoin development last year.  This is one
 of the few economic design flaws that Satoshi overlooked in the
 original design.
 
 As much as I personally hate the idea of data storage in the
 blockchain, this at least discourages the creation of permanent
 UTXO.
 
 Warren Togami
 
 
 --

 
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Re: [Bitcoin-development] On OP_RETURN in upcoming 0.9 release

2014-02-28 Thread Justus Ranvier
On 02/28/2014 07:25 PM, Mark Friedenbach wrote:
 Transaction fees are a DoS mitigating cost to the person making the
 transaction, but they are generally not paid to the people who
 actually incur costs in validating the blockchain. Actual transaction
 processing costs are an externality that is completely unpaid for.

What that means is the network layer is broken and needs to be fixed.

Bitcoin is the blockchain, not the P2P network. If the existing network
is not incentive compatible, then that's the root cause which should be
addressed.

There's no reason to enshrine the broken behavior and use it as a
roadblock to stop progress.


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Re: [Bitcoin-development] On OP_RETURN in upcoming 0.9 release

2014-02-28 Thread Drak
On 28 February 2014 14:42, Warren Togami Jr. wtog...@gmail.com wrote:


 https://github.com/litecoin-project/litecoin/commit/db4d8e21d99551bef4c807aa1534a074e4b7964d

 In one way in particular, the transaction fees per kilobyte completely
 failed to account for the actual cost to the network.  If Bitcoin had
 adopted a common-sense rule like this, I would have had no reason to join
 Litecoin development last year.  This is one of the few economic design
 flaws that Satoshi overlooked in the original design.


Is there any particular reason that patch would not make it into bitcoin if
submitted?

Drak
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Re: [Bitcoin-development] On OP_RETURN in upcoming 0.9 release

2014-02-27 Thread Troy Benjegerdes
To each his own, but if I say Please don't charge me for YOUR privacy
by putting junk like stealth addresses in the blockchain, I think I'd
get laughed out of most rooms.

Either the transaction fees are sufficient to pay the cost for whatever
random junk anyone wants to put there, or they are not, and if they are
not, then I suggest you re-think the fee structure rather than trying
to pre-regulate me putting 80 character pithy quotes in the blockhain.


On Mon, Feb 24, 2014 at 09:23:12AM -0800, Mark Friedenbach wrote:
 Given our standardization on 128-bit security / 256-bit primitives, I
 can't think of any crypto related data payload which requires more than
 40 bytes. Even DER encoded compressed public keys will fit in there. A
 signature won't fit, but why would you need one in there?
 
 There's no need to design for 64-byte hashes, and the 80-char line
 length comparison is a good point. As an Engineer I'd want to have a
 little more room as a 32-byte hash or EC point + 8 bytes identifying
 prefix data is the bare minimum, but it is also very important that we
 send a message: This is for payment related applications like stealth
 addresses only. Don't burden everybody by putting your junk on the block
 chain.
 
 On 02/24/2014 08:39 AM, Wladimir wrote:
  
  On Mon, Feb 24, 2014 at 5:03 PM, Jeff Garzik jgar...@bitpay.com
  mailto:jgar...@bitpay.com wrote:
  
  A common IRC proposal seems to lean towards reducing that from 80.
  I'll leave it to the crowd to argue about size from there. I do think
  regular transactions should have the ability to include some metadata.
  
  
  I'd be in favor of bringing it down to 40 for 0.9.
  
  That'd be enough for 8 byte header/identifier32 byte hash.
  
  80, as the standard line length, is almost asking for insert your
  graffiti message here. I also see no need for 64 bytes hashes such as
  SHA512 in the context of bitcoin, as that only offers 256-bit security
  (at most) in the first place.
  
  And if this is not abused, these kind of transactions become popular,
  and more space is really needed, the limit can always be increased in a
  future version.
  
  Wladimir
  
  
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[Bitcoin-development] On OP_RETURN in upcoming 0.9 release

2014-02-24 Thread Jeff Garzik
An update in forthcoming 0.9 release includes a change to make
OP_RETURN standard, permitted a small amount of metadata to be
attached to a transaction:
https://github.com/bitcoin/bitcoin/pull/2738

There was always going to be some level of controversy attached to
this.  However, some issues, perceptions and questions are bubbling
up, and it seemed fair to cover them on the list, not just IRC.

1) FAQ:  Why 80 bytes of data?  This is the leading programmer
question, and it was not really documented well at all.  Simple
answer:  2x SHA256 or 1x SHA512, plus some tiny bit of metadata.  Some
schemes are of the nature BONDhash rather than just plain hash.
A common IRC proposal seems to lean towards reducing that from 80.
I'll leave it to the crowd to argue about size from there. I do think
regular transactions should have the ability to include some metadata.

2) Endorsement of chain data storage.  Listening to bitcoin conference
corridor discussions, reading forum posts and the occasional article
have over-simplified the situation to core devs endorse data storage
over blockchain!  let me start uploading my naughty movie collection!
IM over blockchain, woo hoo!

Nothing could be further from the truth.  It's a way to make data
/less damaging/, not an endorsement of data storage in chain as a good
idea.  MasterCoin and other projects were doing -even worse- things,
such as storing data in forever-unspendable TX outputs, bloating the
UTXO for eternity.

It seems reasonable to have a release note to this effect in the 0.9
release announcement, IMO.

-- 
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BitPay, Inc.  https://bitpay.com/

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Re: [Bitcoin-development] On OP_RETURN in upcoming 0.9 release

2014-02-24 Thread Pieter Wuille
On Mon, Feb 24, 2014 at 5:03 PM, Jeff Garzik jgar...@bitpay.com wrote:

 I do think
 regular transactions should have the ability to include some metadata.

and

 2) Endorsement of chain data storage.

 Nothing could be further from the truth.

These two statements are in direct contradiction with each other.

-- 
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Re: [Bitcoin-development] On OP_RETURN in upcoming 0.9 release

2014-02-24 Thread Jeff Garzik
(fscking 'send' hotkey in GMail)

Not really - a MasterCoin or JPEG image transaction is not a regular
transaction.

On Mon, Feb 24, 2014 at 11:16 AM, Pieter Wuille pieter.wui...@gmail.com wrote:
 On Mon, Feb 24, 2014 at 5:03 PM, Jeff Garzik jgar...@bitpay.com wrote:

 I do think
 regular transactions should have the ability to include some metadata.

 and

 2) Endorsement of chain data storage.

 Nothing could be further from the truth.

 These two statements are in direct contradiction with each other.

 --
 Pieter



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Re: [Bitcoin-development] On OP_RETURN in upcoming 0.9 release

2014-02-24 Thread Jeff Garzik
Not really -- a MasterCoin transaction or JPEG

On Mon, Feb 24, 2014 at 11:16 AM, Pieter Wuille pieter.wui...@gmail.com wrote:
 On Mon, Feb 24, 2014 at 5:03 PM, Jeff Garzik jgar...@bitpay.com wrote:

 I do think
 regular transactions should have the ability to include some metadata.

 and

 2) Endorsement of chain data storage.

 Nothing could be further from the truth.

 These two statements are in direct contradiction with each other.

 --
 Pieter



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Re: [Bitcoin-development] On OP_RETURN in upcoming 0.9 release

2014-02-24 Thread Gavin Andresen
40 bytes is small enough to never require an OP_PUSHDATA1, too, which will
make writing the OP_RETURN-as-standard BIP simpler.


On Mon, Feb 24, 2014 at 11:39 AM, Wladimir laa...@gmail.com wrote:


 On Mon, Feb 24, 2014 at 5:03 PM, Jeff Garzik jgar...@bitpay.com wrote:

 A common IRC proposal seems to lean towards reducing that from 80.
 I'll leave it to the crowd to argue about size from there. I do think
 regular transactions should have the ability to include some metadata.


 I'd be in favor of bringing it down to 40 for 0.9.

 That'd be enough for 8 byte header/identifier32 byte hash.

 80, as the standard line length, is almost asking for insert your
 graffiti message here. I also see no need for 64 bytes hashes such as
 SHA512 in the context of bitcoin, as that only offers 256-bit security (at
 most) in the first place.

 And if this is not abused, these kind of transactions become popular, and
 more space is really needed, the limit can always be increased in a future
 version.

 Wladimir




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Re: [Bitcoin-development] On OP_RETURN in upcoming 0.9 release

2014-02-24 Thread Pavol Rusnak
On 02/24/2014 05:45 PM, Gavin Andresen wrote:
 40 bytes is small enough to never require an OP_PUSHDATA1, too

So are 75 bytes. (I'm not trying to push anything. Just saying ...)

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Re: [Bitcoin-development] On OP_RETURN in upcoming 0.9 release

2014-02-24 Thread Jeff Garzik
This PR reduces the size to 40 bytes:
https://github.com/bitcoin/bitcoin/pull/3737

(Note - this is not intended to close the discussion... please do keep
sending in feedback)

On Mon, Feb 24, 2014 at 11:03 AM, Jeff Garzik jgar...@bitpay.com wrote:
 An update in forthcoming 0.9 release includes a change to make
 OP_RETURN standard, permitted a small amount of metadata to be
 attached to a transaction:
 https://github.com/bitcoin/bitcoin/pull/2738

 There was always going to be some level of controversy attached to
 this.  However, some issues, perceptions and questions are bubbling
 up, and it seemed fair to cover them on the list, not just IRC.

 1) FAQ:  Why 80 bytes of data?  This is the leading programmer
 question, and it was not really documented well at all.  Simple
 answer:  2x SHA256 or 1x SHA512, plus some tiny bit of metadata.  Some
 schemes are of the nature BONDhash rather than just plain hash.
 A common IRC proposal seems to lean towards reducing that from 80.
 I'll leave it to the crowd to argue about size from there. I do think
 regular transactions should have the ability to include some metadata.

 2) Endorsement of chain data storage.  Listening to bitcoin conference
 corridor discussions, reading forum posts and the occasional article
 have over-simplified the situation to core devs endorse data storage
 over blockchain!  let me start uploading my naughty movie collection!
 IM over blockchain, woo hoo!

 Nothing could be further from the truth.  It's a way to make data
 /less damaging/, not an endorsement of data storage in chain as a good
 idea.  MasterCoin and other projects were doing -even worse- things,
 such as storing data in forever-unspendable TX outputs, bloating the
 UTXO for eternity.

 It seems reasonable to have a release note to this effect in the 0.9
 release announcement, IMO.

 --
 Jeff Garzik
 Bitcoin core developer and open source evangelist
 BitPay, Inc.  https://bitpay.com/



-- 
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Re: [Bitcoin-development] On OP_RETURN in upcoming 0.9 release

2014-02-24 Thread Jeremy Spilman
On Mon, 24 Feb 2014 09:10:26 -0800, Jeff Garzik jgar...@bitpay.com wrote:
 This PR reduces the size to 40 bytes:
 https://github.com/bitcoin/bitcoin/pull/3737

Just quickly GLANCED at it, but if I understand correctly how the template  
matching code works, that will change max size of the data to 40 bytes  
but does not do anything to enforce most-efficient encoding.

   else if (opcode2 == OP_SMALLDATA)
   {
   // small pushdata, = MAX_OP_RETURN_RELAY bytes
   if (vch1.size()  MAX_OP_RETURN_RELAY)
  break;
   }

This code was a bit hard for me to parse since it's not actually requiring  
any data, just disallowing more than a certain number of bytes of data. So  
a bare OP_RETURN would be allowed as well, for whatever good that will do.

If you want to strictly require no PUSHDATA, perhaps you could do:

   else if (opcode2 == OP_SMALLDATA)
   {
   // small pushdata, = MAX_OP_RETURN_RELAY bytes
   if (opcode1 = OP_PUSHDATA1 || vch1.size()  MAX_OP_RETURN_RELAY)
  break;
   }

Thanks,
Jeremy


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Re: [Bitcoin-development] On OP_RETURN in upcoming 0.9 release

2014-02-24 Thread Jeff Garzik
Sure, no objection to that.


On Mon, Feb 24, 2014 at 5:12 PM, Jeremy Spilman jer...@taplink.co wrote:
 On Mon, 24 Feb 2014 09:10:26 -0800, Jeff Garzik jgar...@bitpay.com wrote:

 This PR reduces the size to 40 bytes:
 https://github.com/bitcoin/bitcoin/pull/3737


 Just quickly GLANCED at it, but if I understand correctly how the template
 matching code works, that will change max size of the data to 40 bytes but
 does not do anything to enforce most-efficient encoding.

   else if (opcode2 == OP_SMALLDATA)
   {
   // small pushdata, = MAX_OP_RETURN_RELAY bytes
   if (vch1.size()  MAX_OP_RETURN_RELAY)
  break;
   }

 This code was a bit hard for me to parse since it's not actually requiring
 any data, just disallowing more than a certain number of bytes of data. So a
 bare OP_RETURN would be allowed as well, for whatever good that will do.

 If you want to strictly require no PUSHDATA, perhaps you could do:

   else if (opcode2 == OP_SMALLDATA)
   {
   // small pushdata, = MAX_OP_RETURN_RELAY bytes
   if (opcode1 = OP_PUSHDATA1 || vch1.size()  MAX_OP_RETURN_RELAY)
  break;
   }

 Thanks,
 Jeremy




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Jeff Garzik
Bitcoin core developer and open source evangelist
BitPay, Inc.  https://bitpay.com/

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Re: [Bitcoin-development] On OP_RETURN in upcoming 0.9 release

2014-02-24 Thread Andreas Petersson
Regarding 80 bytes vs smaller: The objectives should be that if you are
determined to put some extra data in the blockchain, OP_RETURN should be
the superior alternative. if a user can include more data with less fees
using a multisig TX, then this will happen.

eventually dust-limit rules will not be the deciding factor here, since
i suspect block propagation times will have a stronger effect on
effective fees. therefore a slightly larger payload than the biggest
multisig TX is the right answer. - that would be = 64x3 bytes = 192 bytes.
(this is my understanding of how large a 3-of-3 multisig tx can be, plus
1.5 bits encoded in the n parameter)

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Re: [Bitcoin-development] On OP_RETURN in upcoming 0.9 release

2014-02-24 Thread Luke-Jr
On Monday, February 24, 2014 11:06:30 PM Andreas Petersson wrote:
 Regarding 80 bytes vs smaller: The objectives should be that if you are
 determined to put some extra data in the blockchain, OP_RETURN should be
 the superior alternative. if a user can include more data with less fees
 using a multisig TX, then this will happen.
 
 eventually dust-limit rules will not be the deciding factor here, since
 i suspect block propagation times will have a stronger effect on
 effective fees. therefore a slightly larger payload than the biggest
 multisig TX is the right answer. - that would be = 64x3 bytes = 192 bytes.
 (this is my understanding of how large a 3-of-3 multisig tx can be, plus
 1.5 bits encoded in the n parameter)

Perhaps I ought to redo my data carrier configuration option as a max size?

Luke

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Re: [Bitcoin-development] On OP_RETURN in upcoming 0.9 release

2014-02-24 Thread Gregory Maxwell
On Mon, Feb 24, 2014 at 3:06 PM, Andreas Petersson andr...@petersson.at wrote:
 Regarding 80 bytes vs smaller: The objectives should be that if you are
 determined to put some extra data in the blockchain, OP_RETURN should be
 the superior alternative. if a user can include more data with less fees
 using a multisig TX, then this will happen.

 eventually dust-limit rules will not be the deciding factor here, since
 i suspect block propagation times will have a stronger effect on
 effective fees. therefore a slightly larger payload than the biggest
 multisig TX is the right answer. - that would be = 64x3 bytes = 192 bytes.
 (this is my understanding of how large a 3-of-3 multisig tx can be, plus
 1.5 bits encoded in the n parameter)

At least there is no ambiguity that such usage is abusive. Adoption of
the practices matters too. Right now I've seen a lot of people
promoting data storage as a virtuous use, and gearing up to directly
store data when a commitment would work.

If it turns out that encouraging people to use hashes is a lost cause
it can always be further relaxed in the future, going the other way is
much harder.

--
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