About merged mining

Quote from: Bitinvestor on February 26, 2014, 05:28:37 PM

It seems that merged mining for scrypt has arrived:


That makes me want to build a rig and start PoW mining again!
I think Novacoin should implement merged mining as well because it would make us truly energy efficient.

You are right about energy efficiency but there are a some problems:

  • AUX PoW is cost-free for a miner;
  • There are a few big mining pools which will be able to introduce a centralization into PoW mining.

These things are serious problem because one or two big LTC pools will take a major part of PoW emission for free. I presume that we shouldn’t introduce a possibility of this scenario, especially if the pool operator decides to keep mined coins for himself instead of distribution. Because it allows somebody to get a significant part of stake for free, which contradicts to the network security model.


As far we know, some payment processors and users accepts 0/unconfirmed transactions. But this solution is not secure, because it’s possible to create two transactions with the same inputs, but different outputs.


Attacker is able to send a first transaction directly to victim, and then broadcast a second transaction over the network. This couldn’t be prevented using the proof-of-work design, but it’s possible to fight with such manipulations through using an extension for our proof-of-stake system, and we even don’t need a chain fork to implement this.

Continue reading

To paranoid personality


Add scrypt+sha512 key derivation method.

Disabled by default. You can use -derivationmethod option to choose which method will be used for wallet encryption keys generation.

Possible values:

* sha512 – default, compatible with bitcoin;
* scrypt+sha512 – selects scrypt derivation function.

Please note that this option only allows you to select default method. If you are already using encrypted wallet then suitable derivation method will be selected automatically.

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