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Latest Stable Nxt Client: Nxt 1.12.2

Author Topic: Dynamic Leasing - integration of smart contracts?  (Read 1631 times)


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Dynamic Leasing - integration of smart contracts?
« on: December 10, 2014, 01:13:46 pm »

Can some implementation of smart contracts be used to redistribute incoming forging power dynamically to maintain pools at ~5% each in a decentralised way?

1) From past discussions, Nxt would work best with pools no bigger than 5%.
2) Capping pool size wouldn't work as a single entity with 20% forging power would just split into four 5% pools and nothing would be different.
3) Leased forging has a danger of centralising forging until there are a significant amount of businesses around Nxt that have their own pool(s).

I did write a proposal for this but deleted it as:

i) didn't seem able to protect against Sybil attacks (someone with 20% could just split down into four 5% pools, nothing changes)
ii) probably couldn't be done without significant changes to core (re-leasing of leased effective balances). Or, use of an AT/SC would mean you could send your Nxt to them and stand a reasonably high chance of it being returned... assuming not bugs, exploits etc... so could it be insured somehow within the Nxt ecosystem for this scenario?
iii) probably wouldn't end up being an improvement on the current situation (doesn't stop a pool getting 51% of power without a hard coded cap, and a 5% cap would artificially limit the cumulative forging power of pools to 5*N, (N being the number of pools, currently only 3-4? This would be bad for security). And again, a cap would only mean existing pools would create more pools to compensate as in 1) above.

So, any ideas from the crowd? Can we devise a decentralised entity that can dynamically lease forging power of other uses to pools that have <5% of forging power? The more I think, the more it seems unlikely in the near future.

« Last Edit: December 10, 2014, 01:19:07 pm by Daedelus »