Re: [Bitcoin-development] Proposal: allocate 8 service bits for experimental use

2014-06-18 Thread Wladimir
On Tue, Jun 17, 2014 at 11:29 PM, Jeff Garzik jgar...@bitpay.com wrote:
 I wrote a patch for string-based name extensions, circa 2011-2012.  I
 agree that is preferable to unreadable bits, for reasons you cite.

 However, it was noted that extensions (or UUIDs etc.) would not be
 propagated around the network in addr messages, as service bits are.

Thanks for letting me know, I didn't remember your patch.

Ugh, yes, propagating all extensions in `addr` messages is not how I
imagined this to work.

But then there would need to be an alternative way to discover nodes
that offer a certain extension. Alas, this moves it from a
straightforward and common sense change to a significant change to the
protocol.

Wladimir

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Re: [Bitcoin-development] instant confirmation via payment protocol backwards compatible proto buffer extension

2014-06-18 Thread Mike Hearn
Please, let's talk about other anti-double spend things on a separate
thread.

On Tue, Jun 17, 2014 at 5:58 PM, Isidor Zeuner cryptocurrenc...@quidecco.de
 wrote:

 What prevents the following steps from happening:


I linked to Satoshi's post on this earlier, he explains why it works there,
assuming people follow the original protocol rules.

Your analysis holds as long as network abandons the original Bitcoin
design. Obviously, we hope people won't do that. If everyone decides not to
do things how Satoshi laid out then things will break, although whether we
have a failure of Bitcoin at that point is debatable.
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Re: [Bitcoin-development] Proposal: allocate 8 service bits for experimental use

2014-06-18 Thread Jeff Garzik
On Wed, Jun 18, 2014 at 5:23 AM, Wladimir laa...@gmail.com wrote:
 Anyhow -- back to the original proposal. I'm fine with setting aside
 part of the service bit space for experiments.

ACK

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Re: [Bitcoin-development] instant confirmation via payment protocol backwards compatible proto buffer extension

2014-06-18 Thread Lawrence Nahum
Andreas Schildbach andreas at schildbach.de writes:

 
 What is the use of the Transactions message? Note the Payment message
 already contains a transactions field that could be signed. Can you
 briefly describe the whole flow of messages on an example, including the
 BIP70 messages?

Updated the BIP draft with an example and a few corrections (like the 
redundant parameter).

You can see the diff here 
https://github.com/greenaddress/bips/commit/636d5819c1be9cc099dca0a47a3148332
522a3d4


Allow me to recap BIP changes in discussion:

- making some changes to allow merchants to offer discounts in case of 
instant ?
- allowing multiple signatures ?

Did I miss anything? Thoughts on the above from others?


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Re: [Bitcoin-development] instant confirmation via payment protocol backwards compatible proto buffer extension

2014-06-18 Thread Mike Hearn

 I think that's true if you assume that the instant provider list is based
 on a by hand created list of accepted instant providers. That's how VISA
 works now and that's why I was asking for an approach where the
 trusted_instant_providers list is scalable because that seems very
 dangerous.


Supporting it in the protocol is easy. Building such a thing: that's hard.
Decentralised automated reputation systems are complex and subtle.

I don't feel strongly about whether the field should be optional or
repeated, 100% of implementations in the forseeable future would just
look at the first item and ignore the rest. But if later someone did crack
this problem it would lead to a simple upgrade path. So perhaps you're
right and the protobuf should allow multiple signatures. It means a new
sub-message to wrap the pki_type, pki_data and signature fields into one,
and then making that repeated.

Up to Lawrence.
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Re: [Bitcoin-development] instant confirmation via payment protocol backwards compatible proto buffer extension

2014-06-18 Thread Natanael
Den 17 jun 2014 17:59 skrev Isidor Zeuner cryptocurrenc...@quidecco.de:

 quote:
  Mike Hearn, why don't we just have all nodes report attempted double
spends
  through the node network. No need to involve the miners at all really,
or
  do your suggestion but also report the double spend attempt. By waiting
  maybe 10-60 seconds (instead of 10 minutes for first conf), merchants
can
  be more sure that a double spend attack was not tried. Attacker would
have
  to hold back second tx by 10-60 seconds and hope that that second tx
(with
  higher fee) get's into a solved block before the first one. This forced
  delay time ought to make the attack less successful (but not
impossible).
 

 What prevents the following steps from happening:

 1. attacker sends first transaction, paying to the merchant

 2. merchant waits 10-60 seconds

 3. merchant confirms the payment as received

 4. attacker sees merchant's confirmation

 5. attacker sends double spend

 The security improvement seems to be pretty much exactly the chance
 that during the 10-60 seconds, a block is solved. Am I missing
 something?

 Regarding reporting double spends, this would only help if it comes
 with some kind of penalty for the double spend. Now what if the double
 spend was not done on malicious motives? Maybe someone posted a
 transaction which does not confirm for some reason, and wants to
 recover his funds? Should we regard transactions which do not confirm
 as forever lost, in order to get to an every double spend is a
 misbehaviour policy?

 Best regards,

 Isidor

With 2-of-2 multisignature notaries, the doublespend (the set of
conflicting transactions) would be published and propagated together as
evidence of the notary being malicious. This is trivial and self-evident
self-contained proof.

But there should be no direct penalty IMHO in the Bitcoin protocol itself.

If a transaction would have to be replaced honestly because of being wrong
or simply not confirming, then I think there should be some means of
showing the second transaction is legitimate. Don't ask me how exactly it
would work in practice, but one method could be through showing the
original recipients have signed off on it (showing they agree it should be
reversed).

If you can't get the original recipient to sign, then you're stuck with
either not replacing it or the notary trying to prove the replacing
transaction was legitimate.
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Re: [Bitcoin-development] 0 confirmation txs using replace-by-fee and game theory

2014-06-18 Thread Isidor Zeuner
quote:
[...]
 On 4/24/14, Chris Pacia ctpa...@gmail.com wrote:
  It would work but it's an ugly hack IMO. What do people do if they don't
  have extra to pay when making a purchase? I have 200 mbtc and want to buy a
  200 mbtc phone but I can't because I need 400 mbtc. Sucks for me.
 
  I would much prefer the hassle of a green address notary than always having
  to make sure I have double what I need to make a purchase.

 This scheme wouldn't be mandatory. You can still wait for
 confirmations or rely somehow on existing trust instead if that's
 better for you on that situation.


Considering hotel or car rental payments where the credit card
processor reserves a higher amount in order to cover risks, it
doesn't seem like anything new or particularly inconvenient that a
payment system may require a larger amount than the final price being
available.

Which brings us to the question: Is it an important characteristic in
a payment system that it is capable of quickly spending your last
penny?

Best regards,

Isidor

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