6 ms·
Proof-of-Work is the only solution to Byzantine Generals' problem
- deft 8y agoThere's been a lot of FUD against PoW and some of it is warranted. The problem is saying "PoW is a bad solution to the problem" doesn't provide any path forward. PoS is not a solution, and neither is so called dPoS where block producers are nominated by or purchased from the development team. Lots of smart people are working on better PoW algorithms, more resistant to centralization and hopefully at least one succeeds. Otherwise a new model for trustless p2p exchange of money will need to be developed. It seems to me a lot of so called "decentralized currencies" are moving away from the model that brought billions of dollars into the market, in favour of recreating shitty versions of what already exists. To do this they dance around terms and attempt to claim they're actually MORE decentralized for reasons blah blah blah. I have a feeling the anti-PoW is orchestrated FUD from teams building decentralized-in-name-only platforms like EOS and NEO. Yelling about electricity costs and how "trust is needed!" is getting old. People like the trustless idea, even if so far it hasn't turned out well. A platform that lets you run "unstoppable dApps" when stopping them only requires shutting down 21 known nodes isn't unstoppable at all and is frankly worthless.
- realusername 8y ago> Yelling about electricity costs and how "trust is needed!" is getting old It's still a valid concern, Pow has currently lots of difficulty to scale because of that, not to mention that the electricity needed is enormous to sustain the system.
- smallnamespace 8y agoPoW is a way to use computation as a substitute for human-based methods of generating truth. I wonder how much electricity, energy, and emissions are represented by salaries for the lawyers and judges that are the current implementation of distributed social trust?
- clarkmoody 8y agoYou have your causal chain reversed: enormous amounts of electricity are spent on proof-of-work because it is profitable. There is no minimum amount of work required to "sustain" the system. Of course you lose security with less work performed, but the system can be sustained.
- realusername 8y agoYeah of course but if you want Bitcoin to be used by everybody (that's the goal of a currency after all), it becomes thus very profitable to mine and therefore an enormous amount of electricity is used. That's what I meant by a scaling issue, it works as long as there's not too many users.
- hndamien 8y agoThe energy cost of mining gold is proportional to the price of gold.
- moomin 8y agoWhen discussing environmental damage, I’m not sure gold is the thing you want to be comparing to.
- hndamien 8y agoJust making a point about the economics. The environmental destruction is caused by the energy production in the case of Bitcoin mining. In the case of gold mining, it is done by the mining.
- discodave 8y ago> Otherwise a new model for trustless p2p exchange of money will need to be developed. That's the biggest assumption of all. The idea that there's a need for trustless p2p money, or that existing money doesn't work seems like nonsense to me.
- deft 8y agoPeople think it's cool. I wasn't commenting on whether it's needed for society. But the people developing it would need a better way to achieve their goals if PoW really should be abandoned.
- hndamien 8y agoYou don't need it at all until you need it. Then you really, really need it. It kind of works like a seat belt. To this day I think I have only actually used my seat belt once in my entire lifetime! My family has literally never used theirs.
- JohnJamesRambo 8y agoWhy do you say PoS is not a solution? I agree with you about dPoS being a poor substitute.
- deft 8y agoBecause the name is totally false. You aren't putting anything at stake and it ends up being traditional social trust. "Oh that guy he has a lot of ETH and is a trusted member, he wouldn't attack the network as its in his own best interest!" Beyond that, it's simply a rich-get-richer scheme. Why are staked nodes rewarded? What is their sacrifice and what are they spending to get that reward? Nothing.
- heptathorp 8y agoTheir sacrifice is opportunity cost. Which is what TFA describes as the necessary ingredient for a consensus protocol. > Practical impossibility can be reframed in terms of "opportunity cost": there are limited physical resources and those should have been largely allocated to X than to Y so we can see that X sucked in all resources from any alternatives. There are a limited number of coins that can be staked at any time.
- johnrichardson 8y agoYou fundamentally misunderstand PoS. There is no social trust involved. It will work entirely through economic incentivization, including 'group penalization' when enough validators are offline/byzantine at the same time in the case of Casper. Read more here and try to fully understand this document before you make blanket statements like 'PoS won't work': https://github.com/ethereum/wiki/wiki/Proof-of-Stake-FAQ https://github.com/ethereum/wiki/wiki/Proof-of-Stake-FAQ
- nootropicat 8y agoYou lose ethers if you misbehave or stop supporting the network. Amount lost depends on what you did and whether your fault was correlated with faults of other validators.
- DINKDINK 8y ago"Nothing is Cheaper than proof of work"[1]. The best that can be said about Proof of Stake is that you get marginally better security while sacrificing liveliness / allowing the consensus layer to be captured by regulators [2]. PoW forces the machine to advance, if you refuse (or are forced to ignore) a block, the business dies but the network moves forward. If PoS was new and research was underfunded, you might have a plausible claim that it might turn into a workable solution. The fact of the matter is, it's been 6 years since PoS' proposal and millions of dollars in R&D funds have been pumped into trying to unsuccessfully obviate PoW. [1] http://www.truthcoin.info/blog/pow-cheapest/ http://www.truthcoin.info/blog/pow-cheapest/ [2] https://twitter.com/NickSzabo4/status/956461360161935361 https://twitter.com/NickSzabo4/status/956461360161935361 "Conjectured governance under proof-of-stake seems to involve programmers & other amateurs making legal & accounting decisions. Bitcoin governance does not. Even when lawyers & accountants properly take over PoS governance, PoW governance will likely be far more socially scalable."
- nootropicat 8y ago>allowing the consensus layer to be captured by regulators The opposite. You can't hide mining at the required scale. Miners must have a registered companies to get access to cheap electricity, employ workers etc. Any mining business that doesn't register is going to be outcompeted by those that do. PoS can work over Tor/I2p with anonymous validators.
- DINKDINK 8y agoPoS creates a system by which block nomination and chain-tip extension is an elective procedure. Meaning companies could censor transaction at effectively 0 marginal cost. Under a legal mandate, that method of consensus is untenable. See Szabo's tweet.
- nootropicat 8y agoIf by elective you mean that validators can easily ignore past blocks, that can be solved by a commit/reveal algorithm or multi party computation.
- bpicolo 8y agoThis does not at all seem like a rigorous proof
- lowbloodsugar 8y agoThat was a nice article which may or may not be true. How does that solve the Byzantine General's Problem [1]? [1] https://en.wikipedia.org/wiki/Byzantine_fault_tolerance#Byzantine_Generals%27_Problem https://en.wikipedia.org/wiki/Byzantine_fault_tolerance#Byza...
- mamon 8y agoMy conclusion about cryptocurrncies is: they can never take over traditional payments. People want payment methods to be: - secure - fast - cheap While traditional payments do relatively well on all three accounts Bitcoin cannot. Yes, we might argue that it’s (in theory) more secure, but it’s also slow and expensive. What’s worse, as the article just proves Bitcoin cannot fix those flaws because its security relies on mining (and therefore transaction processing) being slow and expensive - that’s the very concept of PoW.
- JohnJamesRambo 8y agoYou missed a fourth requirement. - free of government influence That's where the real power of cryptocurrency comes in. No longer are you tied to the decisions of your government with regard to your money. Venezuela, etc. Governments can't just print money for wars if the populace keeps all their money in cryptocurrency, which is borderless.
- mamon 8y agoThat isn't requirement for most people. Furthermore, ordinary people consider "government influence" a good thing, because they trust their government more than some random piece of technology such as Bitcoin.
- PeterisP 8y agoQuite the contrary - for the majority of people and businesses doing online transactions, it's very important that the transactions are reversible and can be overriden by their legal system in case of a dispute. Things like CC chargebacks and the ability to reverse fraudulent transfers are highly valued by most users. There definitely are some markets where this isn't the case, but those are niche markets not similar to most of our economics. In order for cryptocurrency payments to be competitive, the full service has to include not only actual transfer of money but things like a reputable escrow service that answers to local contract law.
- chrisco255 8y agoThere's nothing secure about traditional payments. I have to give away the keys to my account (routing & checking number) in order to transact with my checking account. Similarly, I have to hand over all my information to a 3rd party to process a credit card transaction. The fraud and theft is merely subsidized by the banking institutions themselves, who more than make up for the costs in high interest fees. There's also nothing fast about traditional payments. The actual transferring of money between banks and accounts still takes 24-72 hours, if not longer in some cases. It's also not cheap. The hidden costs are rolled into the banking system, credit card interest and merchant processing fees (which are rolled into the price of products).
- nabla9 8y agoPoW is not a solution and they are not even discussing the problem. Author is mixing Byzantine Generals' problem to completely different set of trust and consensus problems.
- foxhill 8y agonot only is this not a proof, but also implicitly sweeps many issues with the implementation of the current system under-the-rug, which is the more insidious part of this argument. > Proof that Proof-of-Work is the only solution to Byzantine Generals' problem this is an argument for PoW's validity as a solution, for starters. in no way is this a proof, let alone one of uniqueness. > In case of Bitcoin mining farms, such an alternative would require a very expensive and complex production chain, requring either outcompeting other firms that use chip foundries or building single use datacenters in the most cost-effective locations on the plane that is exactly what we have right now! SHA256 has become so optimised in these chips that the whole issue of "consensus" has been almost diluted to "consensus between a very small number of people". it might appear as though i'm identifying a 51% attack, and whilst that is entirely un-addressed in this "proof", that's not what i mean. bitcoin was created to decentralise money. there are so few actors in the mining business now as to negate the benefit of requiring trust in a small number of centralised entities. which, by the way, happen to be well-known, non-anonymous, and culpable when mistakes are made/crimes are committed. sure, the majority of the resources must be used to create a "message", but it certainly does not necessarily represent the consensus. bitcoin, in its current implementation, has failed. that largely stems from the fact that SHA256 PoW as a means of proof, has failed.
- deft 8y ago100% correct, but bitcoin isn't centralized because of PoW, more because of a bad implementation of PoW that was too soon and too easily optimized (if you had the cash). Existing algos will all be eaten in the same way SHA256 was, but why does that mean PoW as a concept is a failure?
- Animats 8y agobecause of a bad implementation of PoW See yesterday's YC article from a cryptocoin ASIC designer.[1] It's possible to design an ASIC for any proof of work algorithm that will be more cost-effective than a general purpose CPU. Monero was supposed to be resistant to special-purpose ASIC approaches. It isn't. Someone quietly built an ASIC for Monero about a year ago and made a ton of money. [1] https://news.ycombinator.com/item?id=17059858 https://news.ycombinator.com/item?id=17059858
- erdevs 8y agoBoy, the logic in this article is bad. PoW is not the only solution to the BFT. PBFT PoS, DPoS, etc are all "solutions", in that they represent a series of tradeoffs to achieve consensus in the presence of faults, just as PoW does. Further, PoW itself as implemented in large part today is vulnerable to attack via selfish mining. Finally, purely empirically speaking, PoW in most systems like Bitcoin today is highly centralized and far from trustless. Consensus authority has accumulated in the hands of large mining operations. Many people foresaw this outcome. In the author's analogy, you are not provided any certainty of consensus on your bunker, rather, massively resourced authorities controlled by a handful of people are dictating state to you and you have nowhere near enough resources to change that.
- nootropicat 8y agoIf every participant is online and all messages are public, then only a majority vote is necessary, as time itself becomes exclusive (only earlier votes matter). There's no need for PoW here. For participants that join later both PoW and PoS are probabilistic, but PoS can be much better: if everyone has to vote the maximum possible classical security is 1-of-n, ie. one eternally honest party exists in all past blocks, so no attacker can obtain 100%, ever. This model can stall but it can't lie. The 100% model is not practical and by itself requires everyone to be online, but for some m in m-of-n, it is. Another variable is how long do the honest assumption must hold: it's relatively easy to construct a scheme that makes honesty for eg. four months nearly certain. Combined with the fact that money is inherently a social thing, it works. It's not an abstract consensus for people in bunkers, but people that want to interact. So if you return after a long time, it's enough to check in several places that accept a specific cryptocurrency what chain is wanted by them.
- cesarb 8y ago> Imagine you are sitting in a bunker. You have no idea what people are out there and what are their intentions. You only receive some incoming messages from strangers that may contain anything. They can be just random garbage or deliberately crafted messages to confuse you or lie to you. [...] When two propositions arrive into your bunker, "X" and "Y", we have no trusted reference point to figure out which one is supported by the majority of other people. We only have "data in itself" to judge which one we should choose as the main one. What if the true answer is "neither", and both have been forged by an attacker? If he's sitting in a bunker with no contact to the outside, and an attacker can intercept and manipulate his every communication, how can he "estimate how expensive it is to produce an alternative"? Was the difficulty too low because it's a forgery, or because everybody's abandoned that PoW chain? IIRC, Bitcoin's answer to that situation is that somehow word of the correct chain will get to him (perhaps smuggled by a carrier pigeon), instantly invalidating all of the attacker's work. That makes sense in real life, but not in imagined scenarios where there are no alternative communication channels.