CHIP-01-08-2024: Creating a Subnet on Bitcoin Cash (BCH) Network Using Tailstorm Protocol

[CyberAshven]

CHIP-01-08-2024: Creating a Subnet on Bitcoin Cash (BCH) Network Using Tailstorm Protocol

Status:

Draft

Type:

Standards Track

Layer:

Peer Services

Created:

[01-08-2024]

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Summary

This proposal introduces a subnet on the Bitcoin Cash (BCH) network leveraging the Tailstorm protocol to enhance transaction speeds while maintaining the SHA-256 hashing algorithm. This subnet aims to provide a secure and efficient alternative to Zero-Confirmation Escrows (ZCEs).

Background & Motivation

Bitcoin Cash (BCH) currently employs Zero-Confirmation Escrows (ZCEs) to enable instant payments. While ZCEs are effective, they pose risks such as double-spending. The Tailstorm protocol, which improves upon traditional proof-of-work mechanisms by utilizing parallel proof-of-work consensus and a DAG-style structure, addresses these issues by enhancing transaction throughput and reducing confirmation times without sacrificing security oai_citation:2,Tailstorm: A Secure and Fair Blockchain for Cash Transactions | DeepAI.

Deployment

Deployment of this specification does not require network coordination. Sufficient deployment, as per the payee's risk profile, is required before Tailstorm-secured transactions can be safely accepted as final.

Specification

1. Integration of Tailstorm Protocol:

   • Implement the Tailstorm protocol to support high transaction throughput using a Directed Acyclic Graph (DAG) structure.
   • Optimize for low latency, achieving transaction confirmation times within seconds.

2. Retain SHA-256 Hashing Algorithm:

   • Maintain the use of SHA-256 for compatibility with existing BCH mining hardware and to ensure network security.

3. Subnet Development:

   • Develop a dedicated subnet within the BCH network for running Tailstorm.
   • Implement interoperability mechanisms for smooth transaction transfers between the BCH mainnet and the Tailstorm subnet.

4. Testing and Deployment:

   • Utilize a simulation framework to test the Tailstorm implementation under various conditions.
   • Conduct extensive testing followed by a phased rollout to the BCH community.

Benefits

1. Faster Transactions: Near-instant transaction confirmation times.
2. Enhanced Security: Reduced risk of double-spending compared to current ZCEs.
3. Compatibility: Continued use of SHA-256 ensures compatibility with existing BCH infrastructure.

Costs & Risk Mitigation

1. Increased Transaction Sizes: Slight increase in transaction size due to additional Tailstorm data.
2. Modification to Transaction Acceptance/Relay: Changes to transaction relay policies might affect existing zero-confirmation transaction users.
3. Node Implementation Complexity: Specialized transaction relay and mining policies might increase the cost and complexity of node implementations.

Reference Implementation

Source Code

# Tailstorm Network Simulation

import networkx as nx
import matplotlib.pyplot as plt

# Create a directed graph
G = nx.DiGraph()

# Add nodes
G.add_nodes_from([1, 2, 3, 4, 5])

# Add edges
G.add_edges_from([(1, 2), (2, 3), (3, 4), (4, 5), (2, 5)])

# Draw the graph
nx.draw(G, with_labels=True)
plt.show()

Directory Structure

bch-tailstorm-subnet/
│
├── src/
│   └── tailstorm.py
│
├── docs/
│   └── README.md
│
├── tests/
│   └── test_tailstorm.py
│
└── requirements.txt

Installation

git clone https://github.com/your-repo/bch-tailstorm-subnet.git
cd bch-tailstorm-subnet
pip install -r requirements.txt

Usage

Run the simulation framework:

python -m src.tailstorm

Analyze attack success rates:

python -m tests.test_tailstorm

References

1. Tailstorm: A Secure and Fair Blockchain for Cash Transactions
2. Parallel Proof-of-Work with DAG-Style Voting and Targeted Reward

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This CHIP aims to guide the development and deployment of the Tailstorm subnet, enhancing the BCH network's efficiency and security. Community feedback and participation are crucial for its success.