<bramc>
mrkent, frequently gmaxwell walks off because he has work to do. These sorts of discussions are things he's a bit sick of so they take low priority
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<bramc>
mrkent, Giving a high transaction fee on your transaction is exactly the same thing as 'paying off' a miner to take it faster.
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<mrkent>
bramc: heh, ya i know. was kidding
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<mrkent>
my final point does stand though if anyone else interested: Higher transaction count network is more valuable than lower transaction count network, thus miners would be compensated higher in the high value network.
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<bramc>
mrkent, That's completely dependent on the number of potential buyers and how much they're willing to pay. It's regular monopoly pricing stuff http://econpage.com/201/handouts/pricing/
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<mrkent>
In what scenario is a low transaction limit network more valuable than a high one?
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<bramc>
mrkent, If there's one person who's willing to pay $1 million for a transaction, and 99 others who are willing to pay $1 each, then if you set the number of transactions at 100 you get $100 but if you set it at one you get $1 million
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<mrkent>
why wouldnt u get 1m + 100 at 100 txs
<mrkent>
And why would that guy pay $1m when everyone else is paying $1? It's a transparent marketplace
<bramc>
mrkent, Because it's an iterated game where everyone doing transactions can see the market price, so they'll all wind up paying about the same amount
<bramc>
Oh you said that already, sorry. If you only let one transaction through then it isn't the case that everybody else is paying $1, what happens is that 'everybody else' is paying $1 million, because there aren't any other everybody elses
<bramc>
Maybe I should have included an additional person willing to pay $1 million to avoid a fencepost error, because an auction is second price instead of first price.
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<phantomcircuit>
<bramc> We can probably get consensus around 1mb :-P
<mrkent>
Right, so question of block size is really to answer where this supply/demand curve cross
<phantomcircuit>
++
<bramc>
mrkent, The supply curve is flat, it's the block size
<phantomcircuit>
mrkent, the question is fundamentally very simple really, how decentralized should the system be?
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<phantomcircuit>
if your answer is very then basic math says large blocks are a folly
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<phantomcircuit>
the economic value of your transaction must equal or exceed the networks total cost to process and store your transaction
<phantomcircuit>
the most direct indication of the value of the transaction is the fees
<phantomcircuit>
if fees are essentially zero (the inevitable result of continuously increasing the blocksize limits to meet demand) then the network almost certainly collapses to a small set of nodes which find economic value in bitcoin existing itself
<phantomcircuit>
ie only exchanges run nodes
<phantomcircuit>
that's pretty clearly not a desired outcome
<bramc>
Only exchanges running nodes would probably result in the cost of BTC plummeting
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<kanzure>
typetypetype
<kanzure>
transcripts incoming
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<gmaxwell>
Anyone have a good suggestion for getting transactions signed with fancy scripts that solver doesn't know how to sign? (I mean suggestions simpler than teaching the solver to sign for them)
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<gmaxwell>
oh wow, oh yea, adam talked about extension blocks in that somewhat.
<kanzure>
just finished typing
<kanzure>
(i had a break)
<kanzure>
i was especially intrigued by the idea of locking down even soft-forks, that's quite the card to play
<gmaxwell>
IMO it's more of a philosphical statement than a pratical one. I agree with its as a philosphy. there is also more to that that I think wasn't in the interview.
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<gmaxwell>
which is this idea we were calling evil forks at the time, and were intentionally not proposing (though they've since been independantly invented twice so I don't see any point in being quiet about them now)
<kanzure>
i see; yeah i mean crippling our ability to do soft-forks is probably a lot of foot shooting, but is good philosophy.
<gmaxwell>
which is that you can basically build a soft fork which makes a hardfork extension via an extension block but denies all other transactions.
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<gmaxwell>
which sort of highlights why at least at the limits softforks are bad too.
<kanzure>
would it be too impossibly insane to require rule changes to also require sha256 variations
<kanzure>
er.. uh..
<kanzure>
hm nevermind
<kanzure>
the answer is yes
<gmaxwell>
you can't really deny softforks in any case, not without heroic non-realistic crypto and such. or at least we've not though of a pratical way to.
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<Luke-Jr>
gmaxwell: I'm still somewhat planning a proposal for that; if for nothing other than merge-mining (doesn't need to touch block sizes - though it can if there's consensus for that)
<Luke-Jr>
need to get a reference implementation done and make sure the wording is right first though
<Luke-Jr>
(including a plan for solving people trying to activate it without consensus)
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* andy-logbot
is logging
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<nsh>
bah, logs to read.. :)
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<nsh>
<andytoshi> it's a pretty subtle thing, one of us Should Have Caught It but i'm not too suprised it got thruogh
<nsh>
<andytoshi> well, the paper can just say H(some algebraic formula), the code needs to have temporary variables and stuff, i don't think you can force them to match
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<nsh>
^ depend on the context, you can probably standardise the expansion from algebraic expression for easier detection of inconsistency, i'd guess
* nsh
reads the paper
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<waxwing>
gmaxwell: i think andytoshi's latest ver still has errors in that line, i think it should be corrected from the 1st to 2nd here: http://pastebin.com/EWQJZpwy
<waxwing>
id PM him but not here i think
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<nsh>
"There was another ecash project that came later from Stefan Brands, one of David Chaum's PhD students. It had many more features based on the representation problem, and an extension of the Schnorr signature scheme. It had blind signatures, which are necessary for privacy, and it supported multiple denominations, and it did not have the single denomination efficiency problem." <-- what is this?
<nsh>
oh, never mind. got it
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<nsh>
are we absolutely certain it's not possible to do a trusted-setup in secure multiparty computation with enough distribution of trust as to give reasonable confidence that it can't be consolidated again?
<nsh>
[ie, enough participants]
<kanzure>
maybe there are trusted setup fraud proof mechanisms
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<nsh>
sadly no, the rule is that systems requiring trusted setup tend to invoke startlingly untraceable fraud for anyone with the trapdoor
<nsh>
i can't think of any where abuse of the trapdoor is detectable, in a distributed system
<kanzure>
nsh: well i was thinking of some single-use key scenario, but i see your point
* nsh
nods
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<nsh>
#nsactions floating around and spaced out in time, it's not obvious that you paid $5. You know and the merchant knows it, but the merchant doesn't know it.'
<nsh>
* 'Another one is merge avoidance which is just that in the payment protocol you can pay for a transaction in multiple parts. If you need to pay $15, if you pay you know $5 three times and there's lots of $5 transactions floating around and spaced out in time, it's not obvious that you paid $5. You know and the merchant knows it, but the merchant doesn't know it.'
<nsh>
not sure how to fix that without listening to the talk
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* nsh
wonders why the proof of no-wrapping in single-homomorphic ElGamal or other contexts is the 'expensiver, larger' kind
<nsh>
o then there's the idea that you could do something to cryptographically hide the value in a way that would be compatible with bitcoin. There's a homomorphic encryption method. There's also single-homomorphic encryption, which means you could have encrypted values such that you have an encrypted value A, and add to the ciphertext the encrypted value of B, and the result is the decryption of A + B. So decryption can work through encryption for some scheme
<nsh>
s like ElGamal which works with a variant elliptic curve (51m 39sec). This addition is not normal addition, it's addition modulo n the order of the curve. Knowing that, if you were using these coins, you could add n to your balance, so it oculd become an easy way to print unlimited amounts of bitcoin basically, so you have to use a zero-knowledge range proof to prevent the wrapping, and it's an expensive larger kind of proof.
<nsh>
This zero-knowledge range proof from Schoenmakers 2000 ish, I tried to optimize it. The normal bitcoin value is 8 bytes, 64 bits, and the optimized range proof in homomorphic value is about 1 kilobyte per encrypted value. That's quite a bit of bloat, but it could be interesting for high-value transactions where you don't want to reveal the contract amount or something. Basically it just works because the exponent or the scalar multiplies in elliptic curv
<nsh>
e notation add up. So there's a random value x, which is just to hide the values which cannot be bruteforced, and then a second base h and the value is v, and it also works with unencrypted values, you can mix both encrypted and unencrypted values. You need the fee to be in the clear so that the miner can accept it. It's a different privacy feature than cryptographically anonymous coins. The transactions are linkable, but people can't tell how much money
<nsh>
is changing hands.
<nsh>
--
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<nsh>
can you not do something like have an additional quadratic function of the total and an argument that the relation that only holds for n equals 1
<nsh>
(relation between the linear function and quadratic function)
<gmaxwell>
You cannot compute point times point in a regular ec group.
<nsh>
oh, right
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<nsh>
could you pair with another nonlinear function that doesn't require point multiplication?
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<andytoshi>
nsh: i think if you found such a function that did anything useful for you, it'd turn out to be a pairing (maybe a pairing composed with some weird isomorphism)
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* nsh
nods
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<nsh>
kanzure, pull requested
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<prevara>
anyone wanna trade\
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<leakypat>
theymos: hey, just FYI bitcointalk seem to be blocked for most people in Asia now
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<fluffypony>
leakypat: off topic, try a PM
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* prevara
I am selling worwide paypal and wellfargo account msg me if intrested
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<nsh>
prevara, not here.
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<kanzure>
nsh: merged
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