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Ecash TIDES using Cashu and Stratum v2

Ecash TIDES using Cashu and Stratum v2

Posted on: January 7, 2025 22:41 UTC

Exploring the future of cryptocurrency mining protocols and payout systems reveals several pressing questions and innovative solutions.

The first area of inquiry concerns the development of a Proof of Assets protocol, also known as hashrate validation, which is crucial for both hashpool and traditional mining pools. The challenge lies in creating a protocol that can be adopted by existing pools to ensure the integrity and proof of mining efforts. Assistance from these pools could be pivotal in developing an effective solution.

The discussion on payout formulas presents a dilemma between using Basic Pay Per Last N Shares (PPLNS), TIDES, or other modified PPLNS algorithms. Given that authentication can prevent pool hopping, there's a proposition to revisit proportional payouts, which were originally abandoned due to their inability to deter this issue. However, the emergence of an eHash free market might mitigate these concerns, prompting a reevaluation of the benefits and feasibility of proportional payouts in this new context.

Post-launch considerations delve into the creation of a block template selection market. This involves miners selling a share along with a merkle proof to a block template purchaser, thereby facilitating transaction acceleration. Addressing Miner Extractable Value (MEV) or its more nefarious counterpart, MEVil, requires foundational research into their underlying causes. By understanding these phenomena, it may be possible to establish basic restrictions that mitigate their impact without eschewing the development of potentially beneficial software.

Finally, the concept of a coinbase output market raises complex challenges. Trustlessly and transparently directing the profits from selling coinbase outputs back to miners necessitates innovative mechanisms, especially when dealing with the fluctuating value of eHash tokens and ensuring future block templates include the correct outputs. A potential solution involves crafting transactions that pay miners directly through mining fees, although this approach may face obstacles such as consensus rules preventing certain transaction structures. The dialogue opens up regarding the feasibility of such mechanisms and calls for further exploration and input from the community.