To: Paul Sztorc <truthcoin@gmail.com>,
	Bitcoin Protocol Discussion <bitcoin-dev@lists.linuxfoundation.org>
References: <d3497397-33c3-90c1-1be8-a733736eac0b@gmail.com>
From: Matt Corallo <lf-lists@mattcorallo.com>
Message-ID: <1bb6cccd-3f6d-d62a-2825-4e6f46a4b525@mattcorallo.com>
Date: Sun, 3 Dec 2017 16:32:15 -0500
User-Agent: Mozilla/5.0 (X11; Linux x86_64; rv:52.0) Gecko/20100101
	Thunderbird/52.3.0
MIME-Version: 1.0
In-Reply-To: <d3497397-33c3-90c1-1be8-a733736eac0b@gmail.com>
Content-Type: text/plain; charset=utf-8
Content-Language: en-US
Content-Transfer-Encoding: 8bit
Cc: luke_bipeditor@dashjr.org
Subject: Re: [bitcoin-dev] Two Drivechain BIPs
Precedence: list

Process note: It looks like the BIPs have never been posted to
bitcoin-dev, only high-level discussion around the idea. As I understand
it, this is *not* sufficient for BIP number assignment nor
(realistically) sufficient to call it a hard "proposal" for a change to
consensus rules.

Would love to get feedback from some others who are looking at deploying
real-world sidechains, eg the RSK folks. We can't end up with *two*
protocols for sidechains in Bitcoin.

Comments on BIP 1:

At a high level, I'm rather dissapointed by the amount of data that is
going into the main chain here. Things such as a human readable name
have no place in the chain, IMO. Further, the use of a well-known
private key seems misplaced, why not just track the sidechain balance
with something that looks like `OP_NOPX genesis_block_hash`?

I'm not convinced by the full semantics of proposal/ack of new
sidechains. Given the lack of convincing evidence of that "Risk of
centralisation of mining" drawback in section 4.3 of the sidechains
paper has been meaningfully addressed, I'd say its pretty important that
new sidechains be an incredibly rare event. Thus, a much simpler system
(eg a version-bits-based upgrade cycle with high threshold) could be
used to add new sidechains based on well-known public parameters.

The semantics of the deposit process seem very suboptimal. You note that
only one user can deposit at a time, but this seems entirely
unnecessary. As implemented in the first Elements Alpha release (though
I believe subsequently removed in later versions due to the nature of
Elements of targeting asymmetric "federated" sidechains), if you have
outputs that look like `OP_NOPX genesis_block_hash` as the sidechain
deposit/storage address, deposit can be fully parallel. To reduce
blockchain bloat, spending them for the purpose of combining such
outputs is also allowed. You could even go further and allow some new
sighash type to define something like SIGHASH_ALL|SIGHASH_ANYONECANPAY
which further specifies some semantics for combining inputs which all
pay into the same output.

Finally, you may also want to explore some process for the removal of
sidechain balances from the main chain. As proposed it seems like a
sidechain might, over time, fade into an insecure state as mining power
shifts and new miners no longer consider it worth the value to mine an
old sidechain (as has happened over time with namecoin, arguably).


Comments on BIP 2:

I may be missing something, but I find the security model here kind of
depressing...Not only do hashpower-secured sidechains already have a
significantly reduced security level, but now you're proposing to
further (drastically) reduce it by requiring users to potentially pay in
excess of the value an attacker is willing to pay to keep their chain
secure, on a recurring basis? It seems like if a chain has 10 BTC stored
in it, and I wish to reorg it for a potential gain of, lets say, 6 BTC,
I can pay 6 * 1 BTC (1 per block) to reorg it, and users on the chain
would be forced to pay >6 BTC to avoid this?

While I appreciate the desire to implement the proposed mitigation in
section 4.3 of the sidechains paper (delegating the mining effort of a
merge-mined sidechain to an external entity), I believe it was primarily
referencing pooling the sidechain work, not blindly taking the highest
bidder. I suppose, indeed, that, ultimately, as long as the sidechain is
of relatively small value in comparison to BTC, miners do not risk the
value of their BTC/mining investment in simply taking the highest bidder
of a merge-mined block, even if its a clear attack, but I don't think
thats something to be celebrated, encouraged, or designed to be possible
by default. Instead, I'd, in line with Peter Todd's (and others')
objection to merged mining generally, call this one of the most critical
issues with the security model.

Ultimately, I dont believe your proposal here really solves the drawback
in section 4.3 of the paper, and possibly makes it worse. Instead, it
may be more useful to rely on a high threshold for the addition of new
sidechains, though I'd love to see discussion on this point specifically
on this list. Further, I'd say, at a minimum, a very stable
default-available low-bandwidth implementation of at least the
pool-based mitigation suggested in the paper must exist for something
like this to be considered readily stable enough to be deployed into the
Bitcoin ecosystem.

Matt

On 12/01/17 13:38, Paul Sztorc via bitcoin-dev wrote:
> Hello,
> 
> First, Drivechain has vaguely escaped vaporware status. If you've ever
> thought "I'd like to take a look into Drivechain when there is code",
> then now is a pretty good time. (Unfinished items include M1, and M8_V2.)
> 
> https://github.com/drivechain-project/bitcoin/tree/mainchainBMM
> 
> Also,
> Site:  http://www.drivechain.info/
> Blank sidechain:
> https://github.com/drivechain-project/bitcoin/tree/sidechainBMM
> 
> Second, I think drivechain's documentation / BIP-Drafts are tolerably
> readable.
> 
> Here they are:
> 
> 1.
> https://github.com/drivechain-project/docs/blob/master/bip1-hashrate-escrow.md
> 2.
> https://github.com/drivechain-project/docs/blob/master/bip2-blind-merged-mining.md
> 
> cc: Luke, I think they are ready to be assigned formal BIP Numbers.
> 
> This is also a request for code review. The most helpful review will
> probably take place on GitHub.
> 
> Regular review is also welcome. Although, please read our
> recently-updated FAQ, at: http://www.drivechain.info/faq .
> And also see major earlier discussions:
> https://lists.linuxfoundation.org/pipermail/bitcoin-dev/2017-May/014364.html
> https://lists.linuxfoundation.org/pipermail/bitcoin-dev/2017-June/014559.html
> 
> Have a nice weekend everyone,
> Paul
> 
> 
> _______________________________________________
> bitcoin-dev mailing list
> bitcoin-dev@lists.linuxfoundation.org
> https://lists.linuxfoundation.org/mailman/listinfo/bitcoin-dev
>