Class 21: Scaling Bitcoin & Web Bitcoin Blockchain 2.0
Transcript of Class 21: Scaling Bitcoin & Web Bitcoin Blockchain 2.0
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Class 21: Scaling Bitcoin & Web Bitcoin Blockchain 2.0
1Nick Skelsey & Alex Kuck – Cofounders @ Soapbox Systems
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2Soapbox Systems
UVA is great
We TA’d this class
Dave asked us
No VC funding
We are hiring
Why are we here?
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Who are we?
Soapbox Systems
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4Why? → Ombuds → Scaling Challenges → Scaling How To
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CTF is way cooler than Bitcoin
Soapbox Systems
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Scaling Bitcoin as an inter-bank inter-national settlement system
6Soapbox Systems
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Selling a stock takes three days
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From ust2.com
Soapbox Systems
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Settling ownership of stocks today (T+3)
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From SECURITIES AND EXCHANGE COMMISSION
17 CFR PART 241
Soapbox Systems
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Settling ownership of stocks tomorrow (T+2)
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From SECURITIES AND EXCHANGE COMMISSION
17 CFR PART 241
Soapbox Systems
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This is a big industry
Soapbox Systems
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Mistakes happen
Soapbox Systems
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A Cryptocurrency might solve this
Soapbox Systems
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Bitcoin has a speed limit as of Nov 8, 2015
From github.com/btcsuite/btcd/master/wire/msgblock.go
Soapbox Systems
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A Bitcoin Block
From github.com/btcsuite/btcd/master/wire/msgblock.go
Soapbox Systems
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This is the challenge
github.com/NSkelsey/uva-eng-thesis
Oct 28, 2015
Soapbox Systems
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The Unspent Transaction Set
X X
Soapbox Systems
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!?
Satoshi Info Oct 27, 2015
sizeOf(Unspent Transaction Set)
Soapbox Systems
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Some requirements for a new settlement system a scaled bitcoin:
a fungible currency
handle transaction volume
be regulatable
not run by crypto-anarchists
Soapbox Systems
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Scaling Bitcoin as a state machine public ledger
19Soapbox Systems
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The world has some trust issues
Soapbox Systems
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TRANSITION TRANSITION TRANSITION
Soapbox Systems
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What is Bitcoin trying to accomplish?
“electronic cash”
??????????
Soapbox Systems
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Scale bitcoin?
“How do we scale bitcoin?”
=
“Towards what end should we grow bitcoin?”
=
bitcoin is something now,but what should bitcoin become?
Soapbox Systems
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Montreal
Soapbox Systems
“ It was considered neutral territory, convenient to travel for Europeans and Americans, and some expressed a desire to not enter the U.S. “
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Single consensus
“ We don’t care what happens, we just want a decision. ”- Chinese and Scandinavian Miners @ Scaling Bitcoin, Montreal 2015
Soapbox Systems
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But, politics
Soapbox Systems
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Four Categories
(1) Short term(2) Deterministic growth(3) Market decision(4) External
Soapbox Systems
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(1) Short term
Soapbox Systems
BIP: 102Title: Block size increase to 2MBAuthor: Jeff Garzik <[email protected]>Created: 2015-06-23
AbstractSimple, one-time increase in total amount of transaction data permitted in a block from 1MB to 2MB.
https://github.com/jgarzik/bips/blob/2015_2mb_blocksize/bip-0102.mediawiki
Why?Attack July 8 - July 10
“The average fee went up 3x, while the minimum fee went up a staggering 25x”
- Josh Cincinnati
200 t/s | height of attack1-2 t/s | normal bitcoin7 t/s | max 1mb14 t/s | max 2mb
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(2) Deterministic Growth
Soapbox Systems
BitcoinXT- hard fork- 8 megabyte blocks after January 2016 once 75%+ of mined blocks are
voting for the change- After the switch the max block size limit smoothly increases, doubling
every two years
BIP: 101Title: Increase maximum block sizeAuthor: Gavin Andresen <[email protected]>Created: 2015-06-22
Abstract: This BIP proposes replacing the fixed one megabyte maximum block size with a maximum size that grows over time at a predictable rate.
initial 8mb cap, cap doubles every 2 years for 20 years
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(2) Deterministic Growth
Soapbox Systems
Gavin, explaining motivation behind BIP 101:
(1) Transaction confirmation times for transactions with a given fee will rise; very-low-fee transactions will fail to get confirmed at all.
(2) Average transaction fee paid will rise(3) People or applications unwilling or unable to pay the
rising fees will stop submitting transactions(4) People and businesses will shelve plans to use Bitcoin,
stunting growth and adoption
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(3) Market Decision
Soapbox Systems
Making Decentralized Economic PolicyBIP 100 - Theory and Discussion, v0.8.1 - draftJeff Garzik
Protocol changes proposed:
1. Hard fork, to2. Remove static 1MB block size limit.3. Simultaneously, add a new floating block size limit, set to 1MB.4. The historical 32MB limit remains.5. Schedule the hard fork on testnet for September 1, 2015.6. Schedule the hard fork on bitcoin main chain for January 11, 2016.7. Changing the 1MB limit is accomplished in a manner similar to BIP 34, a one-way lock-inupgrade with a 12,000 block (3 month) threshold by 90% of the blocks.8. Limit increase or decrease may not exceed 2x in any one step.9. Miners vote by encoding ‘BV’+BlockSizeRequestValue into coinbase scriptSig, e.g.“/BV8000000/” to vote for 8M. Votes are evaluated by dropping bottom 20% and top20%, and then the most common floor (minimum) is chosen.
tldr; floating cap, let miner’s decide themselves
What does the rational miner do? (Nick’s got some opinions on this)
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(4) External
Soapbox Systems
- Sidechains
Enabling Blockchain Innovations with Pegged SidechainsAdam Back, Matt Corallo, Luke Dashjr, Mark Friedenbach, Gregory Maxwell, Andrew Miller, Andrew Poelstra, Jorge Timón, and Pieter Wuille
“ In the end, I believe the production quota would fail. The thing is that we can only really enforce rules that most of us agree with anyways. Bitcoin will break down dams erected by special interest groups attempting to block the stream of transactions. That's all I have to say about the transaction fee market.”
- Peter Rhttp://diyhpl.us/wiki/transcripts/scalingbitcoin/peter-r/
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(4) External
Soapbox Systems
- Lightning Network“Bitcoin doesn’t scale”
tldr; transfer tx out of network.if conflict, settle on chain.
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TRANSITION TRANSITION TRANSITION
Soapbox Systems
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Bitcoin blocks have a replication factor of 100%
Soapbox Systems
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Sharding the block chain is complicated
Soapbox Systems
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Some requirements for a new public ledger a scaled bitcoin:
anonymous data storage tokens
replication guarantees
availability guarantees
immutability guarantees
Soapbox Systems
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Block chain microblogs
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“Authorities also use extra-legal measures to forcibly remove
online content. Through the use of arrests, detentions, and
torture, security forces coerced many online forum moderators
into permanently shutting down their sites following the 2011
crackdown. This resulted in the loss of a large amount of
information on ______’s history that had been documented by
online users and made available only through local forums and
websites.”
Freedom House report “Freedom on the Net in _____ 2014.”
39The Problem → A Solution → Implementation → Conclusion
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Marks on the back of Nabeel Rajab after allegedly being beaten by police at a 15 July 2005 protest. From Wikipedia.
40The Problem → A Solution → Implementation → Conclusion
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The Kingdom of Bahrain
The 2014 Freedom House net freedom report card for Bahrain.
The Problem → A Solution → Implementation → Conclusion 41
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Use Bitcoin’s block chain as a permanent storage device for public statements and blog posts.
42The Problem → A Solution → Implementation → Conclusion
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Use the public ledger as a public record.
43The Problem → A Solution → Implementation → Conclusion
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On the feasibility of a censorship resistant decentralized name system
The Economics of Bitcoin mining, or Bitcoin in the presence of adversaries
Majority is not enough: Bitcoin mining is vulnerable
(Ab)using Bitcoin for an Anti-Censorship Tool
This is not an original idea.
Maybe not a good one.
44The Problem → A Solution → Implementation → Conclusion
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To blog you need:
1. The equipment and software
2. An external connection out
3. At least ¢12 in bitcoin
45The Problem → A Solution → Implementation → Conclusion
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To blog you need:
46The Problem → A Solution → Implementation → Conclusion
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ombuds-app is an Android app
- An SPV Bitcoin Client.
- Rely on external API server for more data.
- Connects via TOR.
The Problem → A Solution → Implementation → Conclusion
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48The Problem → A Solution → Implementation → Conclusion
ombfullrelay is a full node and a web server.
- Responsible only for displaying content
- Run on the Web and as TOR hidden service
- Multiple Organizations can host records
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This is a (solvable) challenge
github.com/NSkelsey/uva-eng-thesis
Oct 28, 2015
The Problem → A Solution → Implementation → Conclusion
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50The Problem → A Solution → Implementation → Conclusion
People make public statements on the Web
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https://getombuds.org
On the Web Special thanks to these folks!
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We are hiring a frontend dev
The Problem → A Solution → Implementation → Conclusion