delvingbitcoin
Fastest-possible PoW via Simple DAG
Posted on: January 1, 2025 01:21 UTC
In a comprehensive evaluation of different algorithms' responses to increased hashrate and latency within a network simulation, several key findings emerge.
The study aimed at identifying the most efficient algorithm for adjusting to changes in network conditions, specifically focusing on those that could maintain constant latency amongst nodes for clearer results. A variety of algorithms were tested under conditions of doubled hashrate and latency, with their performances compared based on their response times and accuracy in difficulty adjustment.
The Simple Moving Average (SMA) algorithm was highlighted for its superior performance in adapting to hashrate variations. SMA's effectiveness is attributed to its ability to average out fluctuations over a specified window of blocks, in this case ranging from 660 to 800 blocks. However, the algorithm's significant computational demand, especially in Directed Acyclic Graphs (DAGs), and its lack of responsiveness to latency changes were noted as considerable drawbacks.
Another approach discussed was the Nb/Nc method, which calculates the ratio of a single block cohort (Nc) within a recent window of 20 Nb blocks. This method provides an alternative means of adjustment by focusing on recent block production rates without requiring extensive historical data analysis.
Bob's interest in the "parent method" was also mentioned due to its simplicity and quicker adjustment capability. The parent method targets a specific ratio (1.44) rather than the traditionally expected value of 2, demonstrating an optimized balance between responsiveness and stability. This was compared to the Nb/Nc method's target ratio of 2.42, derived from Bob's equation, highlighting a mathematical foundation for choosing specific target ratios. The equation presented as 2.42 = 1+1/Q, where Q is determined by solving 1/Q = Q * e^Q, underscores the analytical process behind selecting optimal adjustment parameters.
The discussion integrates a complex analysis of algorithmic responses to network changes, emphasizing the trade-offs between computational efficiency, response speed, and adaptability to varying conditions. Through detailed comparison and mathematical reasoning, it contributes valuable insights into the development and refinement of algorithms for managing dynamic network environments.