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Zawy’s Alternating Timestamp Attack

Zawy’s Alternating Timestamp Attack

Posted on: August 12, 2024 22:05 UTC

The discussion focuses on the limitations and potential exploitability of a rule within a blockchain mechanism, specifically regarding the difficulty adjustment in mining.

The core of the exploration is the 4x limit rule, which dictates that each window must have a positive duration to prevent exploitation. However, it's pointed out that if the maximum upward difficulty adjustment were lower, such as 2x or 2.5x, this system could indeed be exploited. An example provided illustrates how, by adjusting the duration of mining windows to $\sqrt{2}$ times two weeks for the first two windows and then utilizing the minimum legal time for the third, an operation could span approximately $2\sqrt{2} + \epsilon$ windows' worth of time. This approach would yield three windows' worth of blocks without increasing the difficulty level above its starting point. Furthermore, it's suggested that more complex strategies could potentially be employed with strictly monotonic timestamps, especially as the maximum upward adjustment factor approaches the mathematical constant $e$. Once the factor exceeds $e$, however, these exploitation strategies become ineffective. This conversation highlights the intricate balance between setting rules that govern the rate of block production in blockchain technologies and ensuring those rules are robust against manipulation.