Wednesday 27 December 2017

Long live decentralized bitcoin(!) A reading list

Newbs might not know this, but bitcoin recently came out of an intense internal drama. Between July 2015 and August 2017 bitcoin was attacked by external forces who were hoping to destroy the very properties that made bitcoin valuable in the first place. This culminated in the creation of segwit and the UASF (user activated soft fork) movement. The UASF was successful, segwit was added to bitcoin and with that the anti-decentralization side left bitcoin altogether and created their own altcoin called bcash. Bitcoin's price was $2500, soon after segwit was activated the price doubled to $5000 and continued rising until here we are today at $15000.

During this drama, I took time away from writing open source code to help educate and argue on reddit, twitter and other social media. I came up with a reading list for quickly copypasting things. It may be interesting today for newbs or anyone who wants a history lesson on what exactly happened during those two years when bitcoin's very existence as a decentralized low-trust currency was questioned. Now the fight has essentially been won, I try not to comment on reddit that much anymore. There's nothing left to do except wait for Lightning and similar tech to become mature (or better yet, help code it and test it)

In this thread you can learn about block sizes, latency, decentralization, segwit, ASICBOOST, lightning network and all the other issues that were debated endlessly for over two years. So when someone tries to get you to invest in bcash, remind them of the time they supported Bitcoin Unlimited :P

Summary / The fundamental tradeoff

A trip to the moon requires a rocket with multiple stages by gmaxwell (must read) http://bit.ly/2mcXaLo

Bram Cohen, creator of bittorrent, argues against a hard fork to a larger block size http://bit.ly/2l8dpaL

gmaxwell's summary of the debate http://bit.ly/1PWdiEF

Core devs please explain your vision (see luke's post which also argues that blocks are already too big) http://bit.ly/2lce6Qb

Mod of r/btc speaking against a hard fork http://bit.ly/2li3e2H

It's becoming clear to me that a lot of people don't understand how fragile bitcoin is http://bit.ly/2vbXzyF

Blockchain space must be costly, it can never be free http://bit.ly/2lj2ABL

Charlie Lee with a nice analogy about the fundamental tradeoff http://bit.ly/2laFWfB

gmaxwell on the tradeoffs http://bit.ly/28TJdsM

jratcliff on the layering http://bit.ly/2lbrWCv

Scaling on-chain will destroy bitcoin's decentralization

Peter Todd: How a floating blocksize limit inevitably leads towards centralization [Feb 2013] http://bit.ly/1EDZj1i mailing list http://bit.ly/2BZr5PU with discussion on reddit in Aug 2015 http://bit.ly/2ljuEFo

Nick Szabo's blog post on what makes bitcoin so special http://bit.ly/2lb7zWd

There is academic research showing that even small (2MB) increases to the blocksize results in drastic node dropoff counts due to the non-linear increase of RAM needed. http://bit.ly/2lgGzDM

Reddit summary of above link. In this table, you can see it estimates a 40% drop immediately in node count with a 2MB upgrade and a 50% over 6 months. At 4mb, it becomes 75% immediately and 80% over 6 months. At 8, it becomes 90% and 95%. http://bit.ly/2l9RuQw

Larger block sizes make centralization pressures worse (mathematical) http://bit.ly/2alUZ1m

Talk at scalingbitcoin montreal, initial blockchain synchronization puts serious constraints on any increase in the block size https://www.youtube.com/watch?v=TgjrS-BPWDQ&t=2h02m06s with transcript http://bit.ly/2lbrYdB

Bitcoin's P2P Network: The Soft Underbelly of Bitcoin https://www.youtube.com/watch?v=Y6kibPzbrIc someone's notes: http://bit.ly/2zEi3la reddit discussion http://bit.ly/2ljuFJs

In adversarial environments blockchains dont scale http://bit.ly/2la3CRr

Why miners will not voluntarily individually produce smaller blocks http://bit.ly/2ll4LVE

Hal Finney: bitcoin's blockchain can only be a settlement layer (mostly interesting because it's hal finney and its in 2010) http://bit.ly/2laR4cv

petertodd's 2013 video explaining this https://www.youtube.com/watch?v=cZp7UGgBR0I

luke-jr's summary http://bit.ly/2liRzR0

Another jratcliff thread http://bit.ly/2laJRZS


Full blocks are not a disaster

Blocks must be always full, there must always be a backlog http://bit.ly/2llEO8z

Same as above, the mining gap means there must always be a backlog talk: https://www.youtube.com/watch?time_continue=2453&v=iKDC2DpzNbw transcript: http://bit.ly/2l9bjrd

Backlogs arent that bad http://bit.ly/2lmvMIq

Examples where scarce block space causes people to use precious resources more efficiently http://bit.ly/2lbrYu7

http://bit.ly/2lkhBTZ

http://bit.ly/2laFY7d

Full blocks are fine http://bit.ly/2lkoIvA

High miner fees imply a sustainable future for bitcoin http://bit.ly/2lahV8x

gmaxwell on why full blocks are good http://bit.ly/2lmvLnQ

The whole idea of the mempool being "filled" is wrong headed. The mempool doesn't "clog" or get stuck, or anything like that. http://bit.ly/2laJTRu


Segwit

What is segwit

luke-jr's longer summary http://bit.ly/2lmvNfs

Charlie Shrem's on upgrading to segwit https://twitter.com/CharlieShrem/status/842711238853513220

Original segwit talk at scalingbitcoin hong kong + transcript https://youtu.be/zchzn7aPQjI?t=110

http://bit.ly/2lbgeYB

Segwit is not too complex http://bit.ly/2lj2Ctn

Segwit does not make it possible for miners to steal coins, contrary to what some people say http://bit.ly/2latpcq

http://bit.ly/2lmhyH8

Segwit is required for a useful lightning network It's now known that without a malleability fix useful indefinite channels are not really possible.

http://bit.ly/2la83eS

http://bit.ly/2llrqkr

http://bit.ly/2lbIOsI

Clearing up SegWit Lies and Myths: http://bit.ly/2liWMs8

Segwit is bigger blocks http://bit.ly/2la82Ym

Typical usage results in segwit allowing capacity equivalent to 2mb blocks http://bit.ly/2ll6uKB

Why is segwit being blocked

Jihan Wu (head of largest bitcoin mining group) is blocking segwit because of perceived loss of income http://bit.ly/2l9JLBS

Witness discount creates aligned incentives http://bit.ly/2C1bLC2 http://bit.ly/2ljz1jK

or because he wants his mining enterprise to have control over bitcoin http://bit.ly/2ldhMBx

Segwit is being blocked because it breaks ASICBOOST, a patented optimization used by bitmain ASIC manufacturer

Details and discovery by gmaxwell http://bit.ly/2nLOfOd

Reddit thread with discussion http://bit.ly/2laJVsA

Simplified explaination by jonny1000 http://bit.ly/2ll4MsG

http://bit.ly/2laG0vR

http://bit.ly/2lbJ0YY

Evidence http://bit.ly/2lmhzea

http://bit.ly/2lbxgFQ

http://bit.ly/2liWNMI

Bitmain admits their chips have asicboost but they say they never used it on the network (haha a likely story) http://bit.ly/2nIOhpA

Worth $100m per year to them (also in gmaxwell's original email) https://twitter.com/petertoddbtc/status/849798529929424898

Other calculations show less http://bit.ly/2liRAV4

This also blocks all these other cool updates, not just segwit http://bit.ly/2la3GRb

Summary of bad consequences of asicboost http://bit.ly/2lj0zpv

Luke's summary of the entire situation http://bit.ly/2la712x

Prices goes up because now segwit looks more likely https://twitter.com/TuurDemeester/status/849846845425799168

Asicboost discovery made the price rise https://twitter.com/TuurDemeester/status/851520094677200901

A pool was caught red handed doing asicboost, by this time it seemed fairly certain that segwit would get activated so it didnt produce as much interest as earlier http://bit.ly/2C1nrFa and http://bit.ly/2zD12YK and https://twitter.com/petertoddbtc/status/889475196322811904

This r/btc user is outraged at the entire forum because they support Bitmain and ASICBOOST http://bit.ly/2liSjpi

Antbleed, turns out Bitmain can shut down all its ASICs by remote control: http://bit.ly/2q7wlHA

What if segwit never activates

What if segwit never activates? http://bit.ly/2BZGLSX with http://bit.ly/2zDipbX and http://bit.ly/2lkfGip

Lightning

bitcoinmagazine's series on what lightning is and how it works http://bit.ly/2zDVHjB http://bit.ly/2BZY5r7 http://bit.ly/2l9o8BK

The Lightning Network ELIDHDICACS (Explain Like I Don’t Have Degrees in Cryptography and Computer Science) http://bit.ly/1QcQu9D

Ligtning will increases fees for miners, not lower them http://bit.ly/2l9bkeL

Cost-benefit analysis of lightning from the point of view of miners http://bit.ly/2li3qir

Routing blog post by rusty http://bit.ly/1P3t94J and reddit comments http://bit.ly/2laR6B9

Lightning protocol rfc http://bit.ly/2li3i2r

Blog post with screenshots of ln being used on testnet http://bit.ly/2BYAerM video https://www.youtube.com/watch?v=mxGiMu4V7ns

Video of sending and receiving ln on testnet https://twitter.com/alexbosworth/status/844030573131706368

Lightning tradeoffs http://bit.ly/24vkvWq

Beer sold for testnet lightning http://bit.ly/2BZY6eF and https://twitter.com/MrHodl/status/848265171269283845

Lightning will result in far fewer coins being stored on third parties because it supports instant transactions http://bit.ly/2llrrov

jgarzik argues strongly against LN, he owns a coin tracking startup https://twitter.com/petertoddbtc/status/860826532650123264 https://twitter.com/Beautyon_/status/886128801926795264

luke's great debunking / answer of some misinformation questions http://bit.ly/2lbgiaN

Lightning centralization doesnt happen http://bit.ly/2ljIqrt

roasbeef on hubs and charging fees https://twitter.com/roasbeef/status/930209165728825344 and https://twitter.com/roasbeef/status/930210145790976000


Immutability / Being a swiss bank in your pocket / Why doing a hard fork (especially without consensus) is damaging

A downside of hard forks is damaging bitcoin's immutability http://bit.ly/2lbIZUU

Interesting analysis of miners incentives and how failure is possible, don't trust the miners for long term http://bit.ly/2li3uyH

waxwing on the meaning of cash and settlement http://bit.ly/2l9bm6n

maaku on the cash question http://bit.ly/2li3vmf

Digital gold funamentalists gain nothing from supporting a hard fork to larger block sizes http://bit.ly/2larG6G

Those asking for a compromise don't understand the underlying political forces http://bit.ly/2li3xdR

Nobody wants a contentious hard fork actually, anti-core people got emotionally manipulated http://bit.ly/2k71F4U

The hard work of the core developers has kept bitcoin scalable http://bit.ly/2li3xun

Recent PRs to improve bitcoin scaleability ignored by the debate https://twitter.com/jfnewbery/status/883001356168167425

gmaxwell against hard forks since 2013 http://bit.ly/2l9EjPA

maaku: hard forks are really bad http://bit.ly/2ll6ytP


Some metrics on what the market thinks of decentralization and hostile hard forks

The price history shows that the exchange rate drops every time a hard fork threatens: http://bit.ly/2l8dtav

and this example from 2017 https://twitter.com/WhalePanda/status/845562763820912642

http://bit.ly/2llESVR r/btc users lose money

price supporting theymos' moderation http://bit.ly/2ldhM4v

old version http://bit.ly/2lj2GJD

older version http://bit.ly/2lbxfSi

about 50% of nodes updated to the soft fork node quite quickly http://bit.ly/2lj0BO9


Bitcoin Unlimited / Emergent Consensus is badly designed, changes the game theory of bitcoin

Bitcoin Unlimited was a proposed hard fork client, it was made with the intention to stop segwit from activating

A Future Led by Bitcoin Unlimited is a Centralized Future http://bit.ly/2latrB4

Flexible transactions are bugged http://bit.ly/2llrrVx

Bugged BU software mines an invalid block, wasting 13 bitcoins or $12k

http://bit.ly/2lbJ232

http://bit.ly/2lkfH5X

bitcoin.com employees are moderators of r/btc http://bit.ly/2l9ElHc

miners don't control stuff like the block size http://bit.ly/1RagVN8

even gavin agreed that economic majority controls things http://bit.ly/2lahYkJ

fork clients are trying to steal bitcoin's brand and network effect, theyre no different from altcoins http://bit.ly/2liWPnO

BU being active makes it easier to reverse payments, increases wasted work making the network less secure and giving an advantage to bigger miners http://bit.ly/2laR7oH

bitcoin unlimited takes power away from users and gives it to miners http://bit.ly/2lj0AK5

bitcoin unlimited's accepted depth https://twitter.com/tdryja/status/804770009272696832

BU's lying propaganda poster http://bit.ly/2l8dtr1


BU is bugged, poorly-reviewed and crashes

bitcoin unlimited allegedly funded by kraken stolen coins

http://bit.ly/2lmhAie

http://bit.ly/2la72n7

Other funding stuff

http://bit.ly/2li3Fdl

A serious bug in BU http://bit.ly/2laldJ4

A summary of what's wrong with BU: http://bit.ly/2lk8zXd

Bitcoin Unlimited Remote Exploit Crash 14/3/2017

http://bit.ly/2mp5OCp http://bit.ly/2llES8j http://bit.ly/2lcebTZ

BU devs calling it as disaster https://twitter.com/SooMartindale/status/841758265188966401 also r/btc deleted a thread about the exploit http://bit.ly/2ljsPbj

Summary of incident http://bit.ly/2l9Ryje

More than 20 exchanges will list BTU as an altcoin

http://bit.ly/2ljz2UQ

Again a few days later http://bit.ly/2l8dtHx

User Activated Soft Fork (UASF)

site for it, including list of businesses supporting it http://www.uasf.co/

luke's view

http://bit.ly/2lkoOmW

threat of UASF makes the miner fall into line in litecoin

http://bit.ly/2l8duez

UASF delivers the goods for vertcoin

http://bit.ly/2liSlNW

UASF coin is more valuable http://bit.ly/2l9bmTV

All the links together in one place http://bit.ly/2li3FtR

p2sh was a uasf http://bit.ly/2la73aF

jgarzik annoyed at the strict timeline that segwit2x has to follow because of bip148 https://twitter.com/jgarzik/status/886605836902162432

Committed intolerant minority http://bit.ly/2llESoP

alp on the game theory of the intolerant minority http://bit.ly/2lbxi0q

The risk of UASF is less than the cost of doing nothing http://bit.ly/2lmvPnA

uasf delivered the goods for bitcoin, it forced antpool and others to signal (May 2016) http://bit.ly/2lcecHx "When asked specifically whether Antpool would run SegWit code without a hard fork increase in the block size also included in a release of Bitcoin Core, Wu responded: “No. It is acceptable that the hard fork code is not activated, but it needs to be included in a ‘release’ of Bitcoin Core. I have made it clear about the definition of ‘release,’ which is not ‘public.’”"

Screenshot of peter rizun capitulating https://twitter.com/chris_belcher_/status/905231603991007232

Fighting off 2x HF

https://twitter.com/MrHodl/status/895089909723049984

http://bit.ly/2ljz3bm

http://bit.ly/2lbxixs

http://bit.ly/2ljHpzu

http://bit.ly/2lbs2tR

b2x is most of all about firing core https://twitter.com/WhalePanda/status/912664487135760384

http://bit.ly/2wlP3xJ

Misinformation / sockpuppets

http://bit.ly/2wkjyI3

three year old account, only started posting today http://bit.ly/2ljIrM3

Why we should not hard fork after the UASF worked: http://bit.ly/2l8cA1A

History

Good article that covers virtually all the important history http://bit.ly/2llESFl

Interesting post with some history pre-2015 http://bit.ly/2la3IbL

The core scalabality roadmap + my summary from 3/2017 http://bit.ly/1OBBpbG my summary http://bit.ly/2l9obNW

History from summer 2015 http://bit.ly/2llrv7J

Brief reminders of the ETC situation http://bit.ly/2lcecY3

Longer writeup of ethereum's TheDAO bailout fraud http://bit.ly/2ll6Alr

Point that the bigblocker side is only blocking segwit as a hostage http://bit.ly/2la72U9

jonny1000's recall of the history of r/bitcoin http://bit.ly/2ljb9gc

Misc (mostly memes)

libbitcoin's Understanding Bitcoin series (another must read) http://bit.ly/2ldhPxd

github commit where satoshi added the block size limit http://bit.ly/2lmvQYG

hard fork proposals from some core devs http://bit.ly/2nVJpB8

blockstream hasnt taken over the entire bitcoin core project http://bit.ly/2lkoQey

blockstream is one of the good guys http://bit.ly/2lb7FNz

Forkers, we're not raising a single byte! Song lyrics by belcher http://bit.ly/2lmhCXo

Some stuff here along with that cool photoshopped poster http://bit.ly/2larJiS

Nice graphic https://twitter.com/RNR_0/status/871070843698380800

gmaxwell saying how he is probably responsible for the most privacy tech in bitcoin, while mike hearn screwed up privacy http://bit.ly/2lkoQv4

Fairly cool propaganda poster https://twitter.com/urbanarson/status/880476631583924225

btc tankman http://bit.ly/2sf7XUU https://twitter.com/DanDarkPill/status/853653168151986177

asicboost discovery meme https://twitter.com/allenscottoshi/status/849888189124947971

https://twitter.com/urbanarson/status/882020516521013250

gavin wanted to kill the bitcoin chain https://twitter.com/allenscottoshi/status/849888189124947971

stuff that r/btc believes http://bit.ly/2ljiUm9

after segwit2x NYA got agreed all the fee pressure disappeared, laurenmt found they were artificial spam https://twitter.com/i/moments/885827802775396352

theymos saying why victory isnt inevitable http://bit.ly/2lcedez

with ignorant enemies like these its no wonder we won http://bit.ly/2lgGIXQ ""So, once segwit2x activates, from that moment on it will require a coordinated fork to avoid the up coming "baked in" HF. ""

a positive effect of bcash, it made blockchain utxo spammers move away from bitcoin http://bit.ly/2l8dv27

summary of craig wright, jihan wu and roger ver's positions http://bit.ly/2vSK2Aj

Why is bitcoin so strong against attack?!?! (because we're motivated and awesome) http://bit.ly/2latv3M

what happened to #oldjeffgarzik http://bit.ly/2liWQIo

big blockers fully deserve to lose every last bitcoin they ever had and more http://bit.ly/2l9bnXZ

gavinandresen brainstorming how to kill bitcoin with a 51% in a nasty way https://twitter.com/btcdrak/status/843914877542567937

Roger Ver as bitcoin Judas http://bit.ly/2lkoRiC

A bunch of tweets and memes celebrating UASF

https://twitter.com/shaolinfry/status/842457019286188032 | https://twitter.com/SatoshiLite/status/888335092560441345 | https://twitter.com/btcArtGallery/status/887485162925285377 | https://twitter.com/Beautyon_/status/888109901611802624 | https://twitter.com/Excellion/status/889211512966873088 | https://twitter.com/lopp/status/888200452197801984 | https://twitter.com/AlpacaSW/status/886988980524396544 | https://twitter.com/BashCo_/status/877253729531162624 | https://twitter.com/tdryja/status/865212300361379840 | https://twitter.com/Excellion/status/871179040157179904 | https://twitter.com/TraceMayer/status/849856343074902016 | https://twitter.com/TraceMayer/status/841855022640033792 | http://bit.ly/2larMv4



Submitted December 28, 2017 at 03:38AM by belcher_ http://bit.ly/2lmhCGS

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