delvingbitcoin
Fastest-possible PoW via Simple DAG
Posted on: January 2, 2025 17:18 UTC
The discussion revolves around a novel approach to difficulty adjustment in blockchain systems, focusing on the use of graph theory principles.
This method involves measuring the average "width" of the Directed Acyclic Graph (DAG) by calculating the ratio of beads (share-chain blocks) to the total number of consensus cuts or cohorts within the graph. The technique aims to adjust difficulty based on blocks not included in the main chain, offering a more refined perspective than traditional methods. By expressing bead time and cohort time in units relative to a specific constant 'a', the system achieves a single dimensionless variable that facilitates clock-free retargeting, aiming for the maximum number of graph cuts to enhance global consensus points. This approach is highlighted as an innovative solution to eliminate time warp and Difficulty Adjustment Algorithm (DAA) manipulation issues prevalent in existing systems.
Further exploration into this model reveals its potential to address latency without penalizing miners excessively, provided their latency does not significantly exceed a certain threshold. High latency situations are associated with larger cohort sizes and can lead to the creation of Bitcoin orphans, thereby reducing pool profits. The proposed algorithm intends to reward miners proportionally to their work while managing latency to discourage geographical centralization. It suggests sorting and potentially excluding beads with the highest latency from payment pools to maintain efficiency and fairness, drawing parallels with Bitcoin's natural orphan rate as a benchmark for acceptable latency levels.
The concept also touches upon the limitations and assumptions inherent in this model, such as the exclusion of mining activities beyond Earth due to the impracticality imposed by latency considerations. The approach deliberately avoids incentivizing geographic centralization and acknowledges the physical constraints of communication delay, particularly in scenarios involving off-planet mining locations like the moon or Mars. This comprehensive exploration into DAG-based difficulty adjustment and latency management presents a promising avenue for enhancing blockchain network performance and security.