Post
Topic
Board Altcoin Discussion
Re: DECENTRALIZED crypto currency (including Bitcoin) is a delusion (any solutions?)
by
TPTB_need_war
on 29/03/2016, 23:57:46 UTC
No. Because anyone who has greater than 33% of the hashrate must employ the Selfish Mining as their optimum strategy and everyone else must mine on the visible longest chains as theirs.

You say that "white" is "black". It doesn't make sense to continue after this point.


PS: Those who are interested in the subject can check

https://en.wikipedia.org/wiki/Nash_equilibrium#Informal_definition ("Informally, a set of strategies is a Nash equilibrium if no player can do better by unilaterally changing their strategy."),

https://www.cs.cornell.edu/~ie53/publications/btcProcFC.pdf ("We presented Selfish-Mine, a mining strategy that enables pools of colluding miners that adopt it to earn revenues in excess of their mining power.")

and https://bitcoin.org/bitcoin.pdf ("Nodes always consider the longest chain to be the correct one and will keep working on extending it.")

which clearly show that Bitcoin doesn't operate in a Nash equilibrium and still achieves consensus thus making TPTB's claim ("Thus there is no Nash equilibrium.") look out of place, because it shows/proves nothing.

Your IQ is apparently insufficient to understand what I wrote. Your rebuttal is not a rebuttal but you don't understand why.

This folks is the difference between a genius level IQ and not. I'll leave it as a homework problem for CfB or anyone else who wants to demonstrate they have genius level understanding of the Nash equilibrium w.r.t. block chain consensus algorithms.

Even then I would advise waiting for all the other coins using DAG

A DAG can never be a Nash equilibrium consensus. I don't care what magic is piled upon it, I have with my genius insight already determined that the data structure can't support a Nash equilibrium:

https://bitcointalk.org/index.php?topic=1319681.msg14357837#msg14357837

But proof of work is old. Its washed out. Get with the times

It depends which problem one is trying to solve: a) something new to sell to speculators, or b) a system that can scale decentralized because your plans for the use of the CC require that it does.

Satoshi's proof-of-work design is flawed in that it falls to centralization due to economies-of-scale. But the interim Nash equilibrium does function until centralization is at 33% or above, as Bitcoin proved during its nascent period. (Hint: I just refuted CfB's prior post but there is a deeper refutation that I would like to see someone else articulate)

But note every known consensus system for a block chain fails to centralization due to economies-of-scale.

I think I know how to fix Satoshi's design. My future white paper will explain the threats that remain.

Btw iota uses PoW, not PoS

This is what a person with a low IQ and/or incomplete understanding of the holistic analysis of block chain consensus would conclude.

Rather Iota actually devolves to either a proof-of-reputation or centralized proof-of-work because of the loss of the Nash equilibrium which I explained upthread, thus forces centralization in order to force convergence over choices of conflicting DAG branches. How this centralization is maintained will determine whether it is via reputation of which servers payers and payees trust (if these servers can sign these transactions somehow perhaps) else devolves to who has the most efficient ASIC mining farms same as for Bitcoin.