It has been a few weeks bitcoin mining suggested difficulty in breathing we published the Bitcoin-NG whitepaper, and we have received quite a bit of feedback from the community. In this technical post, we want to review some of the insights that people offered, go over some overlooked advantages of Bitcoin-NG, and address some of the concerns that were raised. Overlooked Benefits There are some distinct benefits to Bitcoin-NG compared to Bitcoin, besides higher throughput and lower latency.
Resilience to natural mining power fluctuations: The rate at which Bitcoin commits transactions to its blockchain can vary drastically over time, depending on the mining power in the system. Fluctuations in mining power occur due to fluctuations in difficulty and exchange rate. In contrast in Bitcoin-NG, the last leader can continue to generate microblocks at the same rate. The system also maintains average fairness.
Only the frequency of leader choice fluctuates, just as in Bitcoin, but without consequences to the overall throughput of the system. Healthier incentives for propagating transactions: Our colleagues have noted that there are no strong incentives for the regular Bitcoin network to propagate transactions. The current network works mostly as a result of altruistic participants. In contrast, a miner in Bitcoin-NG will earn more on a transaction if it generates the block after it, therefore it has more incentive to publish it for others to place in the chain. While this is not an absolute solution to all incentivization problems noted by our colleagues Babaioff et al.
Bitcoin-NG is less dependent on altruists for its operation. We discuss the concerns that were raised in various forums, including the wizards IRC channel. Overall, the concerns that were raised apply equally to regular Bitcoin itself or stem from misunderstandings. In all cases, Bitcoin-NG provides stronger guarantees than regular Bitcoin. Direct miner payment: It has been noted that, in Bitcoin-NG, a user can deviate from the prescribed fee distribution plan.
60 fee split we suggested, pay the current leader the same fee in a different split, out of band. This concern amounts to saying “I can pay someone on the side. This is supposed to somehow be a big deal. In general in distributed system design, we care about behaviors by a user that can lead to problems for the system or for other users.