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Fastest-possible PoW via Simple DAG

Fastest-possible PoW via Simple DAG

Posted on: January 3, 2025 15:27 UTC

The process of fully validating a Directed Acyclic Graph (DAG) chain presents significant challenges within the current architecture of Bitcoin Core.

This complexity arises from the necessity to update the Unspent Transaction Output (UTXO) set database with each new block, compounded by the requirement to maintain a cache for multiple branches and to store these caches on disk upon shutdown. Additionally, the architecture must manage multiple copies of the mempool to facilitate rapid processing of new blocks. However, the implementation of a Utreexo-based node offers a promising solution to these issues. Utreexo significantly reduces the storage burden by compressing the UTXO set into a small, 1kb Merkle forest, allowing for efficient tracking of multiple blockchain branches with minimal overhead.

The concept of distributing rewards through weak blocks, leveraging a fee-weighted scheme akin to that described in Delving into Bitcoin, is highlighted as an advantage of validating these blocks. Such a system necessitates frequent updates to the UTXO set database and sophisticated management of multiple blockchain branches and mempool copies, posing a substantial challenge under the current framework.

Despite these hurdles, the Utreexo model emerges as a viable approach to mitigate the complexities associated with maintaining multiple branch states, owing to its compact representation of the UTXO set. However, managing multiple versions of the mempool could still pose computational difficulties, particularly in terms of updating efficiency. The notion of a cluster mempool is suggested as a potential remedy to this issue, although its practicality remains to be fully explored.

Furthermore, it is posited that the Libbitcoin architecture might inherently possess greater adaptability to a DAG configuration due to its distinct structure, as discussed in further detail at Delving into Bitcoin. This implies that alternative Bitcoin node implementations could offer more flexible and efficient solutions for handling the intricacies of DAG chains, potentially overcoming the limitations faced by the conventional Bitcoin Core architecture.

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