delvingbitcoin
Fastest-possible PoW via Simple DAG
Posted on: January 2, 2025 16:04 UTC
In the realm of blockchain technology, particularly within Directed Acyclic Graphs (DAGs), a significant challenge arises concerning the management and acceptance of new parent blocks.
The issue centers on preventing the incorporation of new parents that derive from ancestors deemed "too old," a measure designed to maintain network integrity and consensus. This approach inherently leads to potential forks in the blockchain, where the Proof of Work (PoW) mechanism plays a crucial role in determining the prevailing chain amidst such divergences.
The discussion introduces a scenario wherein the Dynamic Adjustment Algorithm (DAA) employs a strategy of looking back at only a recent set of blocks—specifically, seven—to swiftly achieve consensus. This method is tested under conditions where 15% of the network's hashing power experiences progressively increasing latency, depicted through a stepwise increase in delay. This situation equivalently impacts the network as if the remaining 85% of the hashing power had decreasing latency. A constant network hash rate combined with this variable latency leads to an unexpected drop in difficulty levels, contrary to the anticipated increase. This discrepancy arises because high-latency miners generate blocks invisible to the DAA, leading it to erroneously infer a reduction in the overall network hash rate, thereby orphaning the blocks produced by these miners.
To address these challenges, a novel solution is proposed that shifts the focus from evaluating only the immediate parents of a block to also considering a broader lineage, including grandparents and potentially great-grandparents. This adjustment allows for a more nuanced assessment of a block's latency based on its position within the family tree relative to its siblings. If a block cites as its parent what others consider a grandparent, it signals a higher likelihood of increased latency. Such occurrences are infrequent under uniform latency across the network, enabling the implementation of a significant difficulty increase when they do arise without substantially impacting average conditions. However, in environments where latency disparities are pronounced due to certain miners lagging significantly, this method effectively adjusts the difficulty to accommodate these slower nodes. By doing so, it extends the window during which their blocks remain relevant, thereby reducing the incentive for extreme low-latency competition while still rewarding efforts to minimize delays. This balanced approach aims to enhance fairness and efficiency within the blockchain's operation, ensuring more stable and equitable participation across varying latency conditions.