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Bitcoin Is Having a Civil War as It Enters a Critical Month

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Re: Bitcoin Is Having a Civil War as It Enters a Critical Month

#241
post #202

Earlier quoted context omitted.

Big blocks increase decentralization and censorship resistance by allowing many more transactions and many more users.

Therefore Visa is decentralized? Bitcoin as a high throughput transaction network for buying things like coffee is not a good goal. It should be for much larger transactions, but optimized for decentralization and sound money. Derivative blockchains can be spun off of Bitcoin, and settled periodically to the "reference" blockchain, which is Bitcoin, through lightning networks or other off chain developments (perhaps…

good luck reasoning that to any of the current userbase...

Re: Bitcoin Is Having a Civil War as It Enters a Critical Month

#242

Earlier quoted context omitted.

"I suspect that SegWit2x will end up taking over the network" What? They had first release like yesterday, the project has released one tarball, no packaging, no very good marketing etc. The biggest marketers seem to be the tinfoil hat opponents who fear the fork so much that they speak about it everywhere. I don't think it is at all likely that segwit2x client will gain support. Or if it will gain support, it will t…

The only support it needs is hash power support. That's it. If enough of the hash power can be pulled into it, then it's game over for a minority chain. Running nodes costs almost nothing which means the network can be flooded with segwit2x supporting nodes, and companies will be motivated to switch over.

but if the hash power users leave to another blockchain, and holders of imaginary tokens remain and trust the old blockchain, then the remaining lower hash power users became the dominant hash power.

Re: Bitcoin Is Having a Civil War as It Enters a Critical Month

#243

To me this whole process shows how great cryptocurrencies really are. The process is live, it is public and it is messy. Compare with how our usual currencies are handled. Behind closed doors with powerful banks or private companies deciding for our governments.

At the same time, I'm glad this doesn't happen with the federal reserve, because I enjoy stable value in my day to day currency.

Re: Bitcoin Is Having a Civil War as It Enters a Critical Month

#244

Earlier quoted context omitted.

The difference is that when I buy a stock, they have a balance sheet, usually physical and/or digital assets like buildings, datacenters, warehouses, trucks, intellectual property, software programs, patents. They usually also have people, and some type of plan to leverage everything so that the sum is greater then the parts. That's an investment, when you pay them to leverage their assets and people. Even in a situa…

So buying gold is gambling because gold doesn't have a balance sheet? The distinction seems naive, if not disingenuous.

Gold is a commodity of a specific know content, it doesn't need a balance sheet. The only thing left is to set the price, which you can speculate on. But is does have physical value at some price floor and you're just speculating on the demand. Basically the same for any commodity, oil, wheat, orange juice.

Just like the the USD is not a commodity, neither is BTC, so that's a bit disingenuous to compare it to gold, or a publicly traded and regulated stock. It's not even close.

Re: Bitcoin Is Having a Civil War as It Enters a Critical Month

#245

Earlier quoted context omitted.

> One side of the fight (Core / blockstream) wants to scale off-chain, pushing transactions to side-chains and/or lighting networks, and want to profit from off-chain solutions. I think that gives the wrong impression. First off, Core != Blockstream. Secondly, the consensus amongst Core developers, as I read it, is they want as much on-chain as possible. Their definition of possible is what can a Bitcoin client handl…

> Secondly, the consensus amongst Core developers, as I read it, is they want as much on-chain as possible. Their definition of possible is what can a Bitcoin client handle on the average user's PC I'm curious if you have some sources on this -- most of the anti-big-block claims that I have seen tend to settle on the hard fork being problematic, which is a very legitimate criticism (thought I need to dig up citations…

Sources would be nice, but I don't have the time to dig through the mailing lists for quotes from developers. To be fair, those claiming that Core is conspiring to move transactions off-chain would also need to cite sources.

But quotes from developers are not particularly interesting anyway. What's far more interesting is what the Core developers have actually accomplished. Actions speak louder than words.

They released SegWit which _is_ a 2MB upgrade to blocksize, as a softfork. It's exactly what the community wanted at the time (2MB), without any of the downsides (hardforking).

In addition to that, it increased transaction efficiency, fixed bugs, and enhanced the protocol.

SegWit is a thoughtfully designed protocol upgrade that accomplishes an order of magnitude more than any "upgrade" proposed by any of the alternative clients (Bitcoin-XT, Bitcoin Unlimited, and now SegWit2X).

Post-SegWit the developers are already looking at Schnorr signatures to further increase throughput. They've worked tirelessly to optimize signature verification times and improve the efficiency of the P2P protocol.

Why would they make all those efficiency improvements if their "evil plan" was to move everyone over to a lighting network?

EDIT: To be clear, yes I realize not providing sources is a total cop out :P But not everyone has limitless time to peruse the mailing lists for quotes. I just try to provide my best understanding of things, given my experience working with Bitcoin and keeping eyes on the community and ecosystem.

Re: Bitcoin Is Having a Civil War as It Enters a Critical Month

#246
post #217

Earlier quoted context omitted.

Thanks for this reference code! I got to say, Ethereum really is showing the way to Bitcoin here. The smart contract ecosystem surrounding it is astounding. ---- The BTC equivalent would be to do it by hand; and I don't think it is all that risky, as long as you keep control of all three addresses. Or, ... maybe a BTC smart contract could help us do it easily? What do we need to enable smart contracts on BTC? Oh wait…

> and I don't think it is all that risky, as long as you keep control of all three addresses. By "doing it by hand" I meant the following: - Original wallet A holds BTC before hard fork - Chain splits and forks coexist (lets call them C1 and C2) - New wallet W1 is created for use in the new chain C1 exclusively - New wallet W2 is created for use in the new chain C2 exclusively - You connect to network that uses C1, a…

A solution would be to add a dependency on the chain itself. By definition, in a hard fork you have blocks in one chain which won't ever be accepted by the other. Suppose C2 has a block, let's call it B2, which won't ever be accepted by C1 (because it's larger than the C1 maximum block size, for instance).

Now get the block reward from B2, or some other coin which depends on it. This block reward, and any coin which depends on it, will never be accepted by C1. Mix it somehow with your coins from wallet A, and send the result to W2. Wait a few confirmations for it to stick.

Now you have in C2 all your coins in W2, and in C1 all your coins are still in A (the A->W2 transaction can't be replayed in C1, since it depends on an invalid block). All that's left is to move all funds from A to W1; this will happen only on C1, since it would be a double-spend in C2.

As you can see, it's not that complicated. The only hard part, if you aren't a miner, is to get the "one-sided" coin, but I'd expect either a service to pop up soon to do the mixing for you, for not much more than the transaction fee (the "one-sided" coin can be recycled indefinitely), or a "faucet" to pop up on C2 to give out tiny "one-sided" coins for anyone who needs them, for free.

Re: Bitcoin Is Having a Civil War as It Enters a Critical Month

#247

Earlier quoted context omitted.

You're right that this is a fight for control over bitcoin, but you're wrong on who the players are. There's the corporate faction: BitMain plus Bloq and the ones who want to embed KYC and AML into the bitcoin protocol. Their heavy hitter is Jihan Wu who controls %70 of the hash power, via his mining chips and his pools, and his customers being amenable to his wishes (because they want to remain customers). No visibl…

You are ascribing to the Bitcoin core narrative of a bunch of freedom fighters who are building a decentralized future of freedom, but that narrative does not hold water. First off, Gavin, Jeff, Mike Hearn, you know the guys that have spent a lot of time working on Bitcoin since the beginning aren't in the core project, and in the case of Jeff are actively working on the alternative. That tells you that the allegianc…

> but that narrative does not hold water.

Right, because your narrative is "righter" than his.

> First off, Gavin, Jeff, Mike Hearn, you know the guys that have spent a lot of time working on Bitcoin since the beginning aren't in the core project, and in the case of Jeff are actively working on the alternative.

With little to no input outside of Jeff and the miners that are funding him. This is the nth (where n > 4) iteration of Bitcoin that Bitmain has funded with the intent of maintaining some degree of control over the reference client. As of yet, he hasn't been successful.

> Trying to draw back some unbroken line of succession to Satoshi Nakamoto whose paper basically completely spells out a big block vision is ridiculous.

I agree, particularly since there's been 100s of contributors to the project. Which makes Blockstreams impact much less valuable than the original comment implied.

> Second of all, the great firewall of china isn't crap, a significant amount of data can pass through it, and actually if the block size gets to be too large this actually damages their ability to effectively process blocks quickly.

That's actually false. Block sizes aren't really an issue for the miners, they are an issue for the nodes. Each miner only needs single full node. What increasing the block size does is make running a full node (which has to store the entire block chain) extremely expensive. The larger the block sizes, the more expensive a full node becomes.

> The miners are not interested in SegWit because it completely changes the economic structure of incentives around mining.

SegWit does nothing of the sort. Lightning Network and Sidechains, which can be built on top of SegWit, certainly reduces off-chain fees. SegWit itself only reduces the fees on witness data, but that's moot for the time being. SegWit will have little impact on fees right now.

> It pulls control into channels and reduces direct fees into some hand wavy future about settlement.

See, this implies you have limited technical knowledge on the subject. That's LN, potentially SC. But that has nothing to do with SegWit.

> It's an attack on their real economic interests, i.e the interests that have driven the entire ecosystem of proof-of-work.

PoW is just the security policy, it's not the ecosystem. The economy is the ecosystem. Miners mine, the economy chooses what they mine.

Long-term, miners need to adapt. Instead of looking at off-chain solutions as a bad thing, they need to consider that they are best suited as a Lightning Node. But that requires a longer vision than the miners have.

No one is EVER going to buy coffee on-chain. No amount of increasing block sizes are going to make instant transactions. It's either off-chain transactions or some other altcoin.

> If we are worries about centralization in China

I don't care about where the centralization occurs, I care about the nature of it. Centralizing mining is bad because it gives them power they shouldn't hold. Centralizing nodes gives governments power over Bitcoin. That is dangerous.

> Both sides are about corporate control of the protocol to a certain extent with a bunch of useful idiots drawn in on the basis of arguments that are tangentially related.

LN is an opensource implementation of something not dissimilar to smart contracts. Calling that control is laughable.

Re: Bitcoin Is Having a Civil War as It Enters a Critical Month

#248
post #68

Earlier quoted context omitted.

How sad that a human-created and human-run endeavor turned out to be merely human after all.

Yes, that is the one-line throw away dismissal of the whole affair if you innately believe that everything we do will always devolve to the status quo. I reject this form of behavioral nihilism and prefer to believe that ideas can exact change in this world[1] and move people up and out of the status quo, and lament the failure of even efforts I think were doomed from the beginning. [1] Which isn't to say I reject th…

I am bullish on Bitcoin, even knowing this potential upcoming split. But as early as 2010 one could read criticism that power would become centralized in miners, it was only logical that if their interests and the communiity's diverged that they would have and exert this extra and very human influence.

Re: Bitcoin Is Having a Civil War as It Enters a Critical Month

#250

Earlier quoted context omitted.

The governance issue is, to me, the 'final boss' of Bitcoin. They way it's set up, Bitcoin should ruthlessly follow the will of the majority and generate new consensus. I cannot think of another system that could potentially do this as effectively. It's ugly, bitter, and has real costs, but the way it's playing out gives me confidence that cryptocurrencies are truly a novel form of human communication about value.

> Bitcoin should ruthlessly follow the will of the majority and generate new consensus. This might be a dumb question, but the majority of what?

It's ruthless because existing nation-state actors or other rich actors could invest in mining hardware to take control of the network.

Existing power structures (wealth & access to GPU) translates to power over BTC.

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