Bcash is damaging both itself and bitcoin through violent difficulty and hash rate oscillations

Bitcoin is currently under attack (intentionally or not) from the bcash difficulty algorithm that deviates in a stupid way from Satoshi Nakamoto's original one. This leads to extreme difficulty oscillations on the bcash chain, which affect bitcoin as well.

This is possible because bcash kept the original proof-of-work algorithm, so miners can freely choose whether to mine bitcoin or bcash.

During the phases when the bcash difficulty is very low, lots of miners jump on the bcash chain and mine an insane number of blocks, many times more than the intended 6 per hour. Bitcoin loses that hash power and becomes slow, so the fees rise.

After a few days the bcash difficulty adjusts upward, so miners jump back to bitcoin and begin to reduce the backlog. However, bcash's difficulty algorithm is senselessly asymmetric, so it adjusts down much more rapidly than up. As a consequence, its difficulty falls like a stone after 12 hours, and many miners jump back, deserting bitcoin.

If this continues, bitcoin's average block rate will be reduced until its next difficulty adjustment, causing higher fees.

More thoughts

It seems now that the oscillations that had already been predicted two days ago are getting worse.

A lot depends on whether bcash users realise that bcash, particularly its difficulty adjustment algorithm, is the cause of the oscillations and recognize that bcash was designed without full understanding of the consequences.

Some people said that this is intentional, in which case it would be a malevolent attack on bitcoin, but so far I have no indication that this is the case and don't believe it, particularly because the situation is bad for both coins, which are now limping along on a knife's edge.

So what will happen? The situation is so bad for everybody that it looks as if at least one chain will have to lose market capitalization relatively soon. Nobody will put up with this in the long run.

Interesting questions are how the price of bcash relative to bitcoin influences the outcome, whether rapid SegWit adoption will help bitcoin, and whether bitcoin users will stay the line for long enough.

It would be very sad if a hard fork like bcash severely damaged the entire cryptocoin realm. But the miners have never been quick to recognize when they were working towards their own demise. Moreover, they always suffer from the Tragedy of the Commons, where coordinated action could save us, but each single miner profits more in the short term from accelerating the catastrophe.

submitted by /u/hgmichna
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Bitcoin

Any pool that value those who mine during low difficulty more?

Imagine a pool having 2 people.

A mines for 1 minute when difficulty is 1000. Then B mine for 1 minute when difficulty is 1. Let’s for simplicity sake difficulty change from 1 to 1000 to 1 to 1000 to 1 to 1000 every minute. Say they both got the same machine.

Every 1-2 hours the pool solve some blocks.

The way I understand it is that the pool got far more contribution from B than from A. B contribution to solve some blocks is higher because B provides hash when difficulty is lower.

However, A and B will get roughly the exact same payment.

They submit the same number of shares for the same stratum difficulty.

Am I correct here?

This is important for those who are buying nicehash hash to sell to some other pool. Even though you time your buying when difficulty is low you are rewarded as much as anyone with worse timing,

Are there any pool that rewards you more when you mine at lower difficulty?

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How many correct hashes are there giving a difficulty?

I asked a question about mining difficulty in this SO post, Nate explained that the estimated total amout of hashes being calculated to date is 100000000000000000000000000 which is about 0.0000000000000000000000000000000000000000000000001% of the total number of possiblilities.

This brings up my question: If all of the computing power to date has only calculated a tiny small amout of all the possbilities, how can miners still earn their reward every 10 mintues? Does that mean the number of correct hashes (i.e. hashes less than the target) is also large so that bitcoin rewards are given out frequenlty?

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A question about miningg difficulty

I have read quite a few threads about this topic. I understand the general concept now but with a few holes:

  1. Why is mining being compare to lottery?

The total number of possible hashes = hashes below the target + hashes above the target

As I start to mine, I am reducing the numbers of hashes in the “hashes above the target” group”, so as I make many attempts, my chance of getting the right one should be raising (because the total number of hashes is finite and I crossed out many bad attempts). If this is the case, then why does this article say:

After working on it for 24 hours, your chances of solving it are equal to what your chances were at the start or at any moment

  1. Why does a lower target mean higher difficulty?

Is it because the number of correct answers become less and less?

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Difficulty level and Proof of Work in bit coin

I found in many definition that the difficulty level is the rate of hash generation less than the target.

It is not clear what is the meaning of less than the target.

Is the difficulty level and proof of work are related to each other.

Proof of work says that the block hash should be of the particular format.

  eth.getBlock("latest")   {   difficulty: 6078845,      extraData:"0xd783010506846765746887676f312e362e32856c696e7578",    gasLimit: 4712388,   gasUsed: 0,      hash: "0xdbae9592103635bf9548e5556d644baffbc1d3a861e1eb1c12db27fd59e76646",   logsBloom: "0x00000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000",   miner: "0x9e3378123d3f9ee54535f7064e92e1058666eceb",      MixHash:"0x83f6f508fa9f4242ce922a970ef230c3680b7bda6669b64787bdb9e61897197c",   nonce: "0x046b45b98ba39e7d",      number: 18306,      parentHash: "0x2897a1685fbc44d6795db6baed4db9c7a317bb2f59ee48b451aef807c8028f38",   receiptsRoot:"0x56e81f171bcc55a6ff8345e692c0f86e5b48e01b996cadc001622fb5e363b421",   sha3Uncles: "0x1dcc4de8dec75d7aab85b567b6ccd41ad312451b948a7413f0a142fd40d49347",   size: 570,      stateRoot:"0x6ad193bf2047f8871963f43cecfc6d4d4f9f246645e0f3c92f3c6f061e5b5a0d",   timestamp: 1487165713,      totalDifficulty: 65772692136,     transactions: [],      transactionsRoot:"0x56e81f171bcc55a6ff8345e692c0f86e5b48e01b996cadc001622fb5e363b421",   uncles: []   } 

I could not find any proof of work in this. Only difficulty level is given

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