sipa changed the topic of #bitcoin-wizards to: This channel is for discussing theoretical ideas with regard to cryptocurrencies, not about short-term Bitcoin development | http://bitcoin.ninja/ | This channel is logged. | For logs and more information, visit http://bitcoin.ninja
<Taek> The push for negative interest rates adds a whole new dimension as well
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<mdavid613> hey all, I'm wondering if anyone knows why libsecp256k1 chose to implement ECDH the way they did, using SHA256(ECDH(X)-ECDH(Y)). I would like to use a standardized implementation for ECDH key-derivation, but I need 512 bits of entropy. Also, does anyone know of any plans to have a variable sized ECDH function in libsecp256k1 that would provide dynamic digest sizes?
<sipa> mdavid613: there is no way it can give you 512 bits of entropy, as only 256 bits went in
<sipa> if you need to expand the output from ECDH, feed it as seed to a stream cipher
<sipa> and why it's implemented that way is to prevent certain malleability attacks (which don't usually matter, but in some cases they may)
<sipa> dynamic digest sizes: certainly not, but we may add an ecdh_unsafe that just returns the point
<sipa> also, see #secp256k1
<mdavid613> sipa: got it, my issue here is that I'm feeding a DRBG so the entropy for initialization needs to be able to be reproducible on both sides and I'm not sure if a stream cipher will provide that
<sipa> mdavid613: that's the point of a stream cipher
<sipa> if it's not deterministic it's broken
<sipa> the easiest way (if you're certain 512 bits is enough) is just SHA512(ecdh output)
<sipa> where ecdh output is the sha256 result
<mdavid613> ok, that sounds like the best way to go for me, I appreciate the help @sipa
<mdavid613> 512 is enough, because the largest result I need from DRBG is 256 bits, so really I only _need_ 384
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<rusty> OK, wizards. *Is* there a good answer to https://www.reddit.com/r/Bitcoin/comments/4ip5fh/charitable_tamperproof_blockchainbased_lottery/ ? Using the blockhash is obviously gamable by miners (there was a recent paper which I don't have on hand, kanzure?).
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<rusty> Mutually untrusting parties releasing hashes of secrets has the problem that you'd need timelock puzzles to force them to reveal. Which seems suboptimal.
<bsm1175321> amiller and I had an interesting conversation regarding blockchain randomness. He suggested the use of an oracle involving threshold signatures which can guarantee (up to collusion among of the random oracle contributors) a non-gameable random value for use in things like lotteries. I admit I'm still fuzzy on the details.
<bsm1175321> But it's very clear that if the lottery were large enough, there's an economic incentive to withhold blocks and keep mining until you have a block which favors you in the lottery *in*addition* to winning the block reward.
<bsm1175321> No one should be using the block hash as a source of randomness.
<bsm1175321> A lot of Ethereum contracts are... :-(
<bsm1175321> A similar mechanism was used in amiller's Honey Badger paper...
<kanzure> rusty: i remember this paper but not the title or any of the details that would let me find it. sorry.
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<kanzure> no wait, i am lying
<kanzure> "Malleability of the blockchain's entropy" https://eprint.iacr.org/2016/370.pdf
<MRL-Relay> {-shen} bsm: https://eprint.iacr.org/2015/1015.pdf "on bitcoin as a public randomness source"
<MRL-Relay> {-shen} ah nice
<rusty> bsm117532: yes, that's close to "mutually untrusted parties provide hashes", but then they can withhold if they don't like the result, so you also need them to be timelock puzzles AFAICT.
<bsm1175321> kanzure: I can't believe that's worth of an article...I would have thought it totally obvious...
<rusty> kanzure, MRL-Relay thanks!
<rusty> bsm1175321: it's nice to have something to point at though.
<bsm1175321> rusty: amiller claimed to have a solution to the missing-contributor problem in his honey badger paper.
<MRL-Relay> {-shen} np
<rusty> bsm1175321: ah? Looks at amiller...
<bsm1175321> via threshold signatures.
<bsm1175321> AFAICT it's the same as Shamir's Secret Sharing...
<bsm1175321> So you need a secure multiparty computation to set up the secret sharing...
<rusty> Hmm....
<bsm1175321> Honestly this issue has been blocking me for some time...DPoS uses a hash-and-reveal mechanism to choose the next block creator, but can't tolerate a loss of any participant, and loss of participants is gameable.
<bsm1175321> (DPoS = delegated Proof of Stake a la BitsharesX)
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<bsm1175321> The existence of a SMPC system for the setup may be more than I'm willing to assume... but maybe I didn't fully understand amiller's idea.
<bsm1175321> I think this is the Asynchronous Common Subset (ACS) primitive in that paper, section 4.4.
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<bsm1175321> It strikes me that a Honey Badger-like implementation, combined with a PoW system, provides a way to couple real-world assets into a system. The problem with leader-like systems (PBFT, PAXOS, HoneyBadger, etc) is that they don't represent real-world value in a cryptographic way. The UTXO set might as well be the attendance list for a 3-year old's birthday party.
<bsm1175321> Absent PoW, one must rely on trusted parties to couple real-world value into the system (because all classical existing real-world value exists because of attestations by trusted parties -- governments, banks, etc).
<bsm1175321> Such an idea entirely divorces PoW from the consensus process, and makes it only a proof-of-value...
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<bsm1175321> That makes Satoshi's algorithm a conflation of THREE things (I used to think it was two): (1) a RNG to select the next state (block producer), (2) an incentive to update the state, and (3) a means to couple real-world value into the crypto-asset. A Honey Badger + PoW would be 1+3 with (2) implicit -- anyone participating in either 1 or 3 already has an incentive to update the state...
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<mr_burdell> can you verify that something is a timelock puzzle? what if someone uses random data instead of a valid timelock puzzle?
<mr_burdell> you wouldn't know until it's too late, right?
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<bsm1175321> The idea behind Honey Badger (and most CS literature on the subject) is not to use time at all. It's not something that is agreed upon by all parties, nor cryptographically proveable.
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<bsm1175321> That said, I'm having dreams of defining "network time" using a crypto-currency. It would drift WRT "real" time, but who cares? As long as consensus marches forward linearly...
<amiller> hi
<amiller> this threshold signature thing isn't new in honey badger
<amiller> threshold signatures have been used to make "common coins" for a while
<amiller> common coin is basically a stream of random values that get released one at a time, when the parties release them
<amiller> here's maybe the first https://eprint.iacr.org/2000/034.pdf
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<amiller> but yeah, needing to do SMPC setup is complicated...
<amiller> that's sometimes also called "distributed key generation"
<amiller> "Distributed Key Generation for the Internet"
<amiller> bsm117532, this is not generic smpc, but rather a really specific protocol for setting up parameters for a threshold crypto scheme
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<c0rw1n> cute
<funkenstein_> thanks :) possibly of interest re: yesterday's 500 EUR note discussion
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<funkenstein_> the public coin / private coin distinction continues to get way to little airtime
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<r0ach> which is why I made a thread calling IOTA a permissioned ledger extortion scheme
<r0ach> unprofitable PoW (at least in the case of IOTA) is not an actual decentralized currency, just like PoS
<funkenstein_> lol nice :) link?
<funkenstein_> even a permissioned ledger is still publicly viewable
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<kanzure> .wik ulam spiral
<EmmyNoether> "The Ulam spiral or prime spiral (in other languages also called the Ulam cloth) is a simple method of visualizing the prime numbers that reveals the apparent tendency of certain quadratic polynomials to generate unusually large numbers of primes." - https://en.wikipedia.org/wiki/Ulam_spiral
<yoleaux> "The Ulam spiral or prime spiral (in other languages also called the Ulam cloth) is a simple method of visualizing the prime numbers that reveals the apparent tendency of certain quadratic polynomials to generate unusually large numbers of primes." — https://en.wikipedia.org/wiki/Ulam_spiral
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<kanzure> who's bot is that other one
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* funkenstein_ wonders if numbers below "sloane's gap" would show a pattern on such a spiral
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<bsm117532> r0ach: I wouldn't worry about permissioning, Iota doesn't have any kind of consensus or UTXO set...it's entirely unworkable.
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<funkenstein_> out of curiosity what was the 2nd coin "from russia" referred to in the OP of that thread?
<r0ach> ethereum
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<Taek> bsm117532, rusty: there's been discussions before about making a lottery using blokc hashes
<Taek> The general idea being that you could get -ev mining that way, as people with gambling habits are okay playing -ev games
<Taek> I'm pretty sure you can get a full 32 bytes of entropy from a mined bitcoin block, with the one caveat that miners can opt to burn 25btc and re-roll, though due to competition there's a chance the re-roll won't succeed
<Taek> well, and if you get 51% hashrate you can re-roll as many times as you want
<Taek> also, the cost of re-rolling reduces as we switch from coinbase heavy subsidies to fee heavy subsidies, as you can reuse the same txns
<Taek> It would be pretty easy I think to structure a lottery that pays out much heavier for outlier lucky blocks (1-in-1000) in such a way that it's always against your interest to withhold blocks
<funkenstein_> i built block-roulette.com using block hashes for entropy
<bsm117532> Taek: the number of bytes of entropy in the block hash is a function of the lottery reward. It should not be relied upon in this manner.
<Taek> bsm117532: I don't understand what you are saying there. Getting a block hash with low entropy is only possible with an excessive amount of work. You can't just find one that way
<bsm117532> Taek: it doesn't matter how you evaluate the bits of the block hash. For a large enough expected winnings, I will just withhold blocks for which I'm not the winner.
<Taek> you can structure the lottery such that withholding a block always results in lower actual return
<Taek> for example, pay $100 for normal block, $150 for 1-in-4 block, $100,000 for 1-in-25,000 block
<Taek> there's no reason to withhold a normal block there
<Taek> you still get paid, and you still have the same chance of finding a 1-in-25,000 block
<bsm117532> You'll never know I withheld a block...
<Taek> true, but why would you ever do that?
<bsm117532> Because my expectation value from lottery winnings is larger than the block reward.
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<kanzure> @bramc: we need way better command-line torrenting tools. i know you're watching.
<bsm117532> Block-hashes-as-entropy changes the game theory for miners. They should evaluate the expected block reward plus the expectation value of lotteries they win with the block they mine. (And there may be multiple lotteries)
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<Taek> The idea is that the two would be intertwined, such that you get a single reward which scales as you have luckier hashes
<Taek> if there's a third party lottery that's using some other system it does change the dynamic
<Taek> but you can't prohibit that type of lottery anyway
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<bsm117532> You can loudly proclaim that such lotteries break the incentive model and may break the system they run on, so don't do it. But no you can't strictly prohibit it... The other type of lottery you mention is precisely what the block reward is, already.
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