Re: Wall Observer BTC/USD - Bitcoin price movement tracking & discussion

Initial Impression --

The Good - Thin blocks, Weak Blocks (Also Found in Core's roadmap)

The Bad - Advocating for SPV mining , which is a problem exacerbated by their Validate Once proposal, and pushing off the many benefits of Segwit till the end of the year

The Ugly - 3rd/4th Q 2016 adaptive rule for a block size limit that heavily incentivizes those with better bandwidth which would drive miners from China to locations with better bandwidth and make many home mining operations obsolete because they cannot compete with the propagation times with larger operations who can afford better uplinks. There is no consideration for centralization concerns or the costs of nodes with this proposal which makes it a non-starter from the get go IMHO.

Ugly? UGLY?? This is exactly what we need, something that neutralizes the Chinese electricity and labor cost advantage. Without some way of doing that, we cannot regain censorship resistance. The fact that does so while increasing network performance is just a bonus.

The problem i see obviously is that Chinese miners will be reluctant to adopt it. But if they don't adopt it or something like it, I don't see much future for Bitcoin. Either it will stagnate or it will grow to the point where it becomes a threat to the PRC and they will take over the network.

This proposal is the only ray of hope I see for overcoming the duel problems of scaling and miner concentration.

Is he wrong about this?

There is no consideration for centralization concerns or the costs of nodes with this proposal

yup thats wrong...

Quote

Reduce the effect of block propagation times on orphan rates (lost miner income)
De-emphasize block size as an obstacle for scaling and open up potential for on-chain transaction throughput gains using several improvements (listed below).
Optimizations for bandwidth constrained nodes via improvements to the P2P layer
Note: We intend to discuss various solutions such as the ones listed below and pick the best ones.

Parallel validation of blocks (theoretically reduces the profitability of excessive-sized block attacks).
Headers-first mining (largely nullifies excessive-sized block attacks).
Thin blocks: Blocks refer to transactions that have been well propagated rather than including them, allowing for minimization of bandwidth use.
Weak blocks: allow miners to pre-announce the blocks they are working on, to minimize the data sent once a block is found.
Validate Once: Transactions that have been validated when entering a nodes memory pool do not need to be revalidated when included in a block (speeds up block validation).