Quote from: fonzerrellie on May 14, 2014, 07:34:00 AM

Quote from: energion on May 14, 2014, 06:51:36 AM

ShibeCoin Network Issue Resolution and Transition to Pure Proof-of-Stake

As everybody is aware the ShibeCoin network experienced odd proof-of-work behavior earlier today. As a result we have taken the step of moving to pure proof of stake slightly sooner than planned.

Over the course of the proof-of-work mining period we have consistently experienced "stuck" blocks. This is a common problem in popular coins and occurs due to rapid changes in network hashrate that drive the difficulty up. It is this problem that algorithms like Kimoto Gravity Well and DigiShield were created to solve. In ShibeCoin's case, we used the DigiShield algorithm. This would bring the difficulty back down so the network would not be stuck forever.

The strange behavior we saw earlier today was a result of a bug in the implementation of DigiShield in our code. I was already aware of the issue, but overlooked putting the PoS wrapper code around the block indexer in the difficulty algorithm. The algorithm looks at previous blocks to calculate solving time to then make an adjustment. In Proof-of-Stake coins you need to wrap the pointer to the previous block in a method that iterates based on whether the block you are looking for is a stake block or a PoW block. Without this check, once staking occurred on the network the difficulty adjustment picked up the stake difficulty and used it to retarget the PoW difficulty. The result were rapid jumps from difficulties of 100+ to difficulties of 0-1.

We have cutoff PoW at block 5430. We moved it up slightly because we noticed the network sticking again, and folks were growing tired of working through the stuck blocks.

Now that we are in pure proof-of-stake mode, network transaction processing is dependent upon users staking in their wallets. As part of the staking process blocks are minted and the network moves along, as staking is another form of mining. Leave your wallet open and running, unlocked for minting if you have encrypted it, and you will earn stake interest on your coins as well as transaction processing fees.

The minimum coin age in ShibeCoin is now 8 hours, and the maximum coin age or coin age maturity is 8 days. This means that you can begin earning stake as soon as after 8 hours of coin age, but as you move closer to 8 days you have a greater chance of winning stake. After that staking occurs as a luck of the draw process. The best thing you can do to support the network is to leave your wallet running and staking and contribute to the network transaction processing.

Thank you to everyone involved for your patience and understanding while we have worked through these issues, often under the pressure of extreme FUD. Now it is time to look to the future and to grow the ShibeCoin community.

Best Wishes,

energion

awesome work dev's

Thanks for the update energion. Keep powering on! the FUD won't stop us...