[maaku]

The fee goes to the miner who happens to find the containing block, yes. But not to the thousands of validating nodes integral to the network. And over time fees are given proportional to hashpower... which doesn't make any kind of sense. The incentives are all messed up.

[kordless]

There aren't thousands of validating nodes. All nodes are computing on jobs in the system. The incentive is you get paid for processing code for someone. It's a trusted cloud framework with payment built in. The Dagger page is down. That'll have the detail on the rewards details for compute.

[maaku]

It's a distributed block chain right? And each fully validating node needs to validate each of the scripts, right? So every full node on the network is replicating every single computation. But only the miners are getting paid.

[jaekwon]

Do you have the text for the dagger page?

[tromp]

Dagger appears to be inferior to the Cuckoo Cycle proof of work system I recently developed; see https://github.com/tromp/cuckoo

Cuckoo Cycle is a new proof of work system with the following features

1) proofs take the form of a length 42 cycle in the Cuckoo graph, so that verification only requires computing 42 hashes.

2) the graph size (number of nodes) can scale from 1x2^10 to 7x2^29 with 4 bytes needed per node, so memory use scales from 4KB to 14GB

3) running time is roughly linear in memory, at under 1s/4MB

4) there is no time-memory trade-off, and memory access patterns are the worst possible, making the algorithm constrained by memory latency

5) it has a natural notion of difficulty, namely the number of edges in the graph; above about 60% of size, a 42-cycle is almost guaranteed, but below 50% the probability starts to fall sharply

[nazgulnarsil]

What creates that upper limit of 7x2^29?

[tromp]

the naming convention that allows it to be named cuckoo729.

the program could be rewritten not to use bit 31 as a flag, and then you could use as many as 2^32-1 nodes, but that's not neatly expressible as MULT*2^SHIFT with few digits.

[jnbiche]

The dagger page is cached by google here. Note that this is from 29 Dec and has probably been significantly updated since. But here it is for what it's worth:

http://webcache.googleusercontent.com/search?q=cache:0RAOB-M...

I don't see anything regarding compute rewards here. It's all about the mining PoW. If all nodes are validating the Turing-complete scripts, and only the miners are getting paid, how does that work? What am I missing?

[jaekwon]

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[waterlesscloud]

Are you the same guy who called the bitcoin peak perfectly in April on irc?

[jaekwon]

yes. :)

BTW, also contact me if you want help investing in alt-coins. I'm going to start an alt-coin hedge fund.

[woah]

altcoin index fund? that would never work!

[jaekwon]

I have a personal troll!