Quote from: jojkaart on November 04, 2012, 07:30:26 PM

The problem here is that the full rebalancing operation requires everyone to run the rebalancing algorithm to even verify it was done correctly. This means it has to be optimized so that even weaker systems are able to do it. Otherwise, there's no point in including the simpler algorithm. However, if you do optimize it that way, then the point of having the simpler algorithm vanishes completely and the whole design ends up simpler by just having the full rebalance algorithm.

I can't imagine that the rebalancing algorithm is going to be costlier in CPU time than validating sets of ECDSA signatures on incoming blocks as is already required.

The most expensive operation in rebuilding the tree is SHA256 hashing. We're doing quadrillions of these hashes network-wide every 10 minutes. What's a few million more per node, once every 10 minutes?

I can see wanting to avoid making every miner node rebalance the tree in response to every incoming transaction (i.e. every roll of Satoshi Dice) - this would motivate miners to mine empty blocks, and the reason for having the simpler option. But a possibility of doing a rebalance capped with a maximum of once per block sounds plenty realistic.