[Bitcoin-ml] Alternative difficulty algorithm for Bitcoin Cash

Neil kyuupichan at gmail.com
Wed Oct 4 09:08:35 UTC 2017


On Mon, 2 Oct 2017 at 17:27 Tom Zander <tomz at freedommail.ch> wrote:

> Hi Neil,
>
> can you provide us with a rationale (why is this change needed) and a goals
> (which variables are you optimizing for) section?
>

I think most agree we need to remove volatility from the current EDA
cycle.  We've
just had 6 today, which is extreme.

My goal was something simple to understand that changes difficulty both up
and down
without large jumps, the large 20% jump maintained over a sequence of
blocks being the main
problem with the current EDA - I believe it would work fairly well with a
smaller change like 2 or
3 percent.

I also wanted to maintain a mean block interval of 600 seconds as that is
bitcoin.

Like Shammah said I don't agree that we should be targeting miners or their
earnings;
it is up to them to mine what they want for whatever reason, they will mine
BCC if it is
stable and predictable without needing a cheap turboblock subsidy.
Difficulty adjustments
should be the balancer: their job is to find an equilibrium; we cannot
predict where that is
nor should we try to. But evidence since August is that miners will mine
BCC with a revenue
penalty of up to about 15%, but not much more than that.

The goal should be a stable coin and block production rate whilst
minimizing variance.

I also wanted to provide an alternative for people to discuss; when
consensus settles on
an algo I will follow that and find a way to implement it in Electron Cash
with jonald.

Neil.



>
> Why I ask is because of something I brought up before on this list was a
> problem with deadalnix's proposal: It focused purely on optimizing
> difficulty.
> This goal was ignoring the bigger picture of stability of mining earnings.
>
> In short, it removes the certainty of a minimum amount of profit per energy
> consumption a miner can expect for a 2 week period.
> We need to balance those concerns out, something that the original
> algorithm
> does very well.
>
> Can you comment on how well your work balances those concerns?
>
> Last, could you, or anyone else, provide an actual written specification of
> the new algo? Will be useful for those that don’t read code.
>
> Thanks for this!
>
> On Sunday, 1 October 2017 11:17:09 CEST Neil via bitcoin-ml wrote:
> > I have uploaded a proposal for a Bitcoin Cash difficulty adjustment
> > algorithm
>
> --
> Tom Zander
> Blog: https://zander.github.io
> Vlog: https://vimeo.com/channels/tomscryptochannel
>
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