Twitter Featured | Miners oppose, similar to Zcash's rejected proposal, Jiang Zhuoer's second version of BCH miner tax proposal faces doubts

1. Miners oppose, similar to Zcash's rejected proposal , Jiang Zhuoer's second version of BCH miner tax proposal faces doubts

Jiang Zhuoer, the founder of BTC.TOP mining pool and the poster of the "miner tax" proposal, which calls for BCH miners to donate 12.5% ​​of the block rewards to fund BCH development, released the Chinese and English versions of "BCH Miner Donation Plan Update" through Weibo and Read.cash today. Jiang Zhuoer said that the content of this release is the result of some recent discussions, as well as his views (need to exchange opinions with other mining pools).

In the first version of the miner donation proposal, it was proposed to allocate 12.5% ​​of the block rewards to the BCH development fund through a Hong Kong company to pay for development expenses, cover the implementation of full nodes and other key infrastructure research and development. The 6-month financing plan will receive a total of approximately US$6.075 million in funds.

The second version of the proposal changes the 12.5% ​​ratio to 2-3% . The donation method refers to the ETH Foundation. Miners will directly send part of the block rewards to the projects they want to donate , and establish a miner foundation to maintain financial transparency . Miners who do not want to donate can choose to send the part of the block rewards that should be donated to the black hole address for destruction. The donation method is determined by computing power voting . Jiang Zhuoer himself will use his personal 3500P computing power to mine under a new name. The second version of the proposal emphasizes that each BCH project needs funds , and relying on corporate donations is not enough and will cause BCH to develop too slowly. In addition, before the miner donation plan begins, the BCH Miner Fund will be established first to accept donations from miners and non-miners, individuals and companies, and check the effect through trial operation.

The original text of the second version of the proposal: https://www.weibo.com/ttarticle/p/show?id=2309404467111190724652

After Jiang Zhuoer published the English version of the article on Read.cash, some BCH community members, including miners and developers, expressed their opinions through messages. Some members expressed their gratitude to Jiang Zhuoer for further community communication. The questions about the miners' donation proposal mainly focus on the following points:

1) The miner donation proposal is mandatory and is not conducive to BCH security

2) If a mandatory donation scheme is implemented, it will damage the economic principles/decentralization of BCH

3) Jiang Zhuoer’s personal contribution to BCH development and infrastructure construction

4) Not every BCH project deserves donations

A member who left a message claimed to be a miner and believed that the updated plan was still a "bad" plan (the plan should not be promoted). The miner asked Jiang Zhuoer whether he had donated to the recent fundraising event (a total of 1,000 BCH was raised), whether he had donated to BCH basic development, and what percentage of the total BCH he personally held. The miner said that he donated 2% of his BCH holdings and believed that Jiang Zhuoer's proposal still had the suspicion of forcing miners to donate and would reduce the security of BCH. The miner suggested that more grants be obtained from coin holders in a voluntary and incentive manner , rather than by forcibly collecting a portion of the block rewards.

Another community member first thanked Jiang Zhuoer for continuing to communicate with the community. He believed that if the mandatory donation/burning plan is implemented, it will have a harmful impact on voluntary initiatives that may otherwise take root. He pointed out that only projects/companies that have demonstrated performance or potential are worthy of donations , and development fund expenditure decisions should be participated by more independent observers rather than a few people. Regarding Jiang Zhuoer's proposal to choose to destroy BCH for miners who are unwilling to donate in order to avoid the tragedy of the commons, he said that this is not a "right" but an "obligation" and will lead to changes in the economic principles of BCH.

The chief developer of the Bitcoin Verde full node also left a message, saying that he had not communicated with Jiang Zhuoer so far, and believed that communication between developers and miners was crucial. He left his email address and hoped to communicate further with Jiang Zhuoer.

Note: Read.cash discussion post: https://read.cash/@Jiang_Zhuoer_BTC.TOP_CEO/bch-miner-donation-plan-update-a45daad6

In addition to BCH community members, Vitalik Buterin and Zcash founder Zooko expressed their views on the second version of the proposal. Vitalik Buterin paid close attention to the BCH development fund proposal and immediately forwarded Jiang Zhuoer's updated proposal, adding his own views:

If you’re wondering where I stand on this, my position on this is that I take public goods challenges seriously and am willing to adjust ideological preconceptions to meet those challenges while maintaining a commitment to core values ​​of decentralization.

When the first version of the proposal came out, Vitalik said that the practice of miners who did not follow up on the donation plan through orphan blocks was a mandatory soft fork, and believed that the public goods problem was a systemic problem that required a systemic solution.

Zooko, the founder of Zcash, which is facing a halving in November 2020 and recently decided to set up a new development fund through a community vote, retweeted Vitalik Buterin (Vitalik is a technical consultant for Zcash and Zcash development company ECC) and said that Jiang Zhuoer’s second version of the proposal has the same mechanism as the Zcash plan that was rejected at the beginning:

Interesting! The “ miner -led development fund ” proposed by Jiang Zhuoer for BCH has the same mechanism as Andrew Miller’s proposed mechanism for Zcash, which was rejected : https://zips.z.cash/zip-1004 .

The proposal Zooko mentioned is a proposal numbered ZIP1004, which was released in June 2019. The proposal states that the proposal reserves a portion (20%) of newly minted coins in each block as a development fund. A fixed set of developer entities will be eligible for these funds. Considering that the miners of each block can determine how to allocate these funds to qualified developers, the fund is dominated by miners . The proposal mentions that the proposed development fund is not mandatory, and miners can decide whether to donate to developer entities. The proposal uses the example of the division of funds between two developers to illustrate the coinbase transaction: Assuming that there are 3.125ZEC block rewards during the second halving, the distribution is 2.5ZEC to the miner and 0.3125ZEC to the two developer entities respectively.

According to a blog post published by ECC in September 2019, the Zcash community has discussed a total of 16 proposals , including the above proposals. For these 16 proposals, Zcash Development Company ECC stated that its evaluation criteria is " Is ECC loyal to its mission while accepting the work delegated by the Foundation ?" Regarding the ZIP1004 proposal, Zcash Development Company ECC rejected it and made the following statement:

The ECC does not accept special interests ( such as miners in this case ) controlling the direction of the ECC . If we work under these terms, we run the risk of being forced to choose between compromising our mission or not being funded by special interests . For example: What if Zcash users want to evolve the consensus algorithm to include proof of stake, but the miners on the proof of work side refuse? Or what if a dominant coalition of miners demands a change that disadvantages the minority of miners in the competition? In addition, FinHub notes that “limiting supply or ensuring scarcity [of a cryptocurrency] through buybacks, ‘burns’ or other activities” is a factor in determining whether the cryptocurrency is subject to securities regulations.

ECC announced on January 29, 2020 that, through a community vote, Zcash will establish a new development fund. The fund will own 20% of the mining rewards, of which 7% will be allocated to ECC, 5% to the Zcash Foundation, and 8% will be used for donations to support third-party Zcash businesses.

2. BM: Not adopting blockchain technology in the next few years is like banks not adopting SSL

EOS founder Daniel Larimer (BM) gave a speech at the Government Blockchain Association of the United States on end-to-end security design, the risks of traditional databases and passwords, the future of blockchain and the problems it solves. Block.One’s official Twitter account released part of BM’s speech:

Not adopting blockchain technology in the next few years will be like a bank not adopting SSL (a security protocol). Once the technology is widely available, I think not using blockchain technology may be seen as negligent.

The reason blockchains and development frameworks like EOSIO exist is to enable application developers to build secure applications without having to reinvent the “database”.

Contrary to popular belief, blockchains don’t have to be slow, inefficient, or censorship-resistant, open-access databases. Instead, they can provide companies with vast improvements in security, auditability, transparency, and overall integration of business processes, even if the blockchain is run entirely by that company and all data on the blockchain is publicly available.

BM himself later tweeted:

Any database that hopes to evolve to blockchain-level security needs to be programmable, deterministic, and directly manage end-user accounts. Storage processes are a far cry from smart contracts. Separating business logic from database integrity is severely broken.

In theory, eosio can be built on any key/value database. In practice, I have yet to find one that performs better. We are working to make querying blockchain state as scalable and easy as sql/mongo.

It is much easier for EOSIO to evolve into a database/application server than for existing databases to evolve into more secure ones.

According to the official website, the Government Blockchain Association (GBA) is an international non-profit professional association headquartered in Fairfax, Virginia. GBA members are individuals and organizations interested in introducing blockchain technology solutions to the government. The meeting was held in the U.S. Congress. The meeting introduction showed that the participants included government leaders from all over the world to discuss the 2020 plan, focusing on blockchain technology and cryptocurrency. Speakers included global legislative and administrative leaders from local, state and national government agencies. In addition to BM, the main speakers included Bitcoin advocates, well-known Silicon Valley investor Tim Draper and blockchain father Scott Stornetta.

3. Industry News

a. Jeremy Welch, CEO of Casa, a crypto custody company focused on simplifying self-custody and private key management for crypto users, has resigned. The new CEO is product manager Nick Neuman. At the same time, Casa's business focus will shift from hardware to software.

b. Arianna Simpson, founder of Autonomous Partners, will join the well-known venture capital fund Andreessen Horowitz as a transaction partner starting in March. Simpson once said that only zero-knowledge proof can solve the PoS centralization problem.

c. The new project of David Chaum, the inventor of electronic cash, xx network was included in the Messari Registry. xx network is a consumer-scale online platform where users can share information and exchange value without the risk of data exposure.

The d.Tokenanalyst report pointed out that as of January 27, 2020, five Chinese mining pools, including AntPool, BTC.com, BTC.TOP, F2Pool and ViaBTC, controlled 49.9% of Bitcoin's computing power through BitDeer, a shared mining platform under Bitmain.

e.CoinMetrics data shows that since September 2019, Tether's trading volume on Omni, Ethereum and Tron has continued to grow rapidly and is currently at a historical high, with an average annual flow rate of 46.

f. Kraken Security Labs discloses a method to extract seeds from hardware wallets Trezor, Trezor One, and Trezor Model T, which only requires 15 minutes of physical access to the device. Kraken reminds hardware wallet users not to let anyone touch the wallet and enable the BIP39 passphrase using the Trezor Client.

g.Skew data shows that CME futures trading volume is on an upward trend, generating US$800 million in trading volume as of January 30, the highest since the data on June 27, 2019.

h.Financial Times published an article titled "Bitcoin halving will not cause prices to rise", pointing out that the supply of Bitcoin will not be halved, but will increase, and will continue to increase until 2140. Therefore, according to the principle of supply and demand, halving will not lead to price increases. Bitcoin has been in the process of printing money since its inception.

i.The Block reported that Heath Tarbert, chairman of the U.S. Commodity Futures Trading Commission (CFTC), said in an interview with Bloomberg on Thursday that the crypto market may see the launch of ETH-based futures contracts.

Statement: The views of the institutions and individuals in this article do not represent the position of The Block Hub and do not constitute investment advice.