Combined summary - Deterministic tx selection for censorship resistance

Combined summary - Deterministic tx selection for censorship resistance

The discourse delves into the strategic shift towards empowering individual miners with the task of transaction selection, a move aimed at mitigating the risk of centralized control by state entities.

This initiative, championed by both Stratum V2 (SV2) and Braidpool, underscores the critical need to decentralize the process of transaction selection as a means to fortify the network against potential regulatory or governmental manipulation. The discussion elucidates the financial risks associated with independent transaction selection by small-scale miners, who face significant revenue variance, thereby underscoring the protective role of mining pools in reducing this variability. Furthermore, it touches upon the concept of deterministic transaction selection, questioning its necessity if miners undertake transaction selection independently.

The conversation also explores the implications of a centralized transaction selection mechanism, which could potentially exacerbate centralization concerns within decentralized mining pools. It critically examines the hypothetical scenario where a single entity controls a majority of transaction selections, posing a risk to the foundational principles of blockchain technology. The dialogue suggests that transaction fees could serve as a countermeasure against censorship, allowing users to incentivize the inclusion of their transactions. The proposed system requiring miners in a pool to prioritize pre-selected transactions is critiqued for potentially leading to a monopolistic control over transaction selection, highlighting the importance of maintaining a democratic and decentralized decision-making process in blockchain networks.

Additionally, the discussion pivots to the challenges posed by pool hopping and its limited efficacy against state-level threats, acknowledging a shift in focus towards innovative solutions like braids following the introduction of SV2. This segment of the conversation recognizes the initial reluctance to invest in addressing these challenges and the subsequent optimism generated by the development of braid technology, indicating a renewed interest in enhancing blockchain mining protocols.

Lastly, the discourse contemplates the future of Bitcoin transaction selection, spotlighting concerns over possible centralization and the influence of legal and political pressures on transaction inclusion. It proposes a deterministic approach to transaction selection, facilitated through consensus on the mempool's contents, potentially achieved via decentralized mining pools. This solution aims not only to streamline the validation process and reduce bandwidth requirements but also to tackle the issue of transaction censorship at the share chain level. The email concludes by emphasizing the necessity of a more deterministic, consensus-based transaction selection methodology as a strategy to ensure the decentralization and censorship resistance of the Bitcoin network, advocating for a technical recalibration to uphold the core values of the blockchain ecosystem.

Discussion History

mcelrath Original Post
April 29, 2024 12:26 UTC
April 29, 2024 13:45 UTC
May 4, 2024 21:22 UTC
May 6, 2024 10:00 UTC
May 9, 2024 15:16 UTC
May 9, 2024 15:43 UTC