Thanks Tony,

On Aug 22, 2014, at 4:46 PM, Tony Arcieri <[email protected]> wrote:

> On Fri, Aug 22, 2014 at 3:33 PM, Tao Effect <[email protected]> wrote:
> Speaking of unsupported assertions, that "the merits of proof-of-work [are] 
> debatable" needs to be substantiated with something, especially if you are 
> comparing it to pre-PoW concepts.
> 
> Systems that use a Bitcoin-like proof-of-work function are both:
> 
> 1) Monumentally inefficient

I'm guessing you are referring to either having to wait for transactions to 
confirm, and/or "wasted CPU". I addressed the latter in previous email with a 
reference to Vitalik's discussion of PoW algos that serve to better society 
(think folding @ home, SETI, etc.).

Re the former (txn delay), yes that's an issue with PoW consensus algos, and 
why some look to others.

> 2) Vulnerable to an attacker who wins the proof-of-work lottery most of the 
> time, like has recently happened to Bitcoin

Yes, this is a very interesting problem that many are working on. Solution to 
pooled mining is known:

http://hackingdistributed.com/2014/06/18/how-to-disincentivize-large-bitcoin-mining-pools/

There are many others who are suggesting interesting ways of combatting 51% 
issues:

- https://blog.ethereum.org/2014/07/05/stake/
- https://bitcointalk.org/index.php?topic=309073.msg7385002#msg7385002
- https://eprint.iacr.org/2014/452.pdf


> Compounding this problem is the desire to prevent key compromise in 
> Bitcoin-like systems via the use of multisignature trust and trusted third 
> parties which sign-off on certain operations. This approach centralizes 
> authority, in which case a consensus-based system like Ripple with trusted 
> gateways could be used instead. If it were, it'd be much more efficient, and 
> arguably have better security properties.

I'd rather chance DPOS to address efficiency concerns [1] than rely on "trusted 
gateways", that reminds me too much of the CAs we're trying to get away from.

[1] http://wiki.bitshares.org/index.php/DPOS

Thanks for bringing up the 51% issue btw, this is something that I need to do 
more reading on. At the moment I'm just collecting links... :P

Kind regards,
Greg

--
Please do not email me anything that you are not comfortable also sharing with 
the NSA.


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