ATTENTION: POOL OPERATORS
This update includes a fork, all daemons and stratum deployments must update their code to pay the correct masternodes and correct reward amounts.
Immediately: Enforcement will be turned off, allowing for pools to update their software without risk of orphaned blocks
Oct 23, 2014: Rewards will step up to 25%. Darkcoin users are encouraged to contact pools that have not updated and politely ask them to update.
Nov 14, 2014: Enforcement will be turned on, any pools that have not update will have their blocks rejected.
Who Needs To Update?
All Darkcoin users must update their clients.
Part of securing the Darkcoin network is creating a strong and healthy network of full nodes to back it up. These nodes provide many tasks for users such as propagating messages, syncing clients and mixing users funds via Darksend.
To make the network resistant to attack we required these nodes to hold 1000DRK (these coins are held in a completely trustless way in cold storage in most cases, so they can’t be stolen). In return for holding the coins and running the node, these users are paid 20% of the block reward.
Security for Darksend and InstantX is provided by selecting masternodes deterministically from the total set, then using multiple of these nodes to make decisions. Vastly greater security becomes possible when you add more nodes due to the cost associated with controlling a majority of said nodes. For statistical analysis of this please checkout the InstantX whitepaper
Increasing Rewards Schedule
With this release we will progressively change the reward to incentivize the creation of more masternodes, this should strengthen the network and protect it from sybil attacks making it more expensive for attackers to control an important portion of the nodes.
This is also key for instant transaction confirmations to be a reality, the network needs to be robust enough to handle a large amount of transactions as we strive for adoption on real world applications. The features that give value to Darkcoin need to be protected as that is what will ensure the long term success of the project for the benefit of all Darkcoin supporters, current and those that will join DRK in the future.
*Currently there are 900 active masternodes. Numbers are expected to increase as profitability rises.
** ROI calculation is ((1/t)*b*(r*s)*365)/1000
t = Total number of masternodes
b = Blocks per day on average (576 for Darkcoin)
r = Average reward per block
s = Masternode mining share
Steady Payments and Proof-of-Service
Another issue in the past has been the volatility in return due to the random nature of masternode payments. This is being dealt with by creating an algorithm to pay the masternodes evenly. Each masternode can expect a payment every N blocks with a variance of about 10%.
Also included in this release is a framework that we can build a true proof-of-service platform on. This means only masternodes actually providing services will be paid for those services.
To only pay active masternodes, pay masternodes evenly and ensure that all pools pay the correct node and amount we’ve introduced a new type of node, the reference node. This node has a special key that allows it to tell the network which nodes get paid, on which blocks in the future. Anyone on the network can verify these nodes are doing their job (i.e. not tampering with the results) by running the code and comparing the payee’s due to the deterministic algorithm used. In case of DDOS or a service failure, the network default to paying random masternodes as it does now.
This setup is non-exploitable and will serve as a mechanism of enforcement till we can revisit this in the future. A better future solution would be an in-blockchain voting mechanism like RC3 or a second blockchain updated by the miners that stores the masternode list.
Flare’s Trustless Masternode Hosting Service:
How To Guide:
How To Guide 2:
Just for fun:
Recently after open sourcing, Darksend has been undergoing an exhaustive evaluation of it’s security to many different kinds of attacks. This update includes over 15 measures to prevent abuses of the system and keep it healthy.
To prevent such attacks, we require users to post a collateral payment to the masternode they wish to use. Parts of the Darksend process in the past were not using this protective measures and were quickly identified and attacked. This update includes many improvements to the way collateral is used to make attacking expensive.
One of the notable improvements is that collateral transactions pay the fee directly to miners. This creates a situation where to double spend attack the collateral transaction, one would have to pay a higher fee to the miners. Since the collateral fee is payed to the miners already, double spending attacks against the system are impossible.
We had to take a short detour from InstantX to focus on Darksend after it gained enough attention to be actively attacked by our competitors. Now that we’re confident of the security of the system, we’ll be moving back to working on InstantX.
The first version of InstantX will be a soft-fork. It will simply show when transactions have been successfully validated by the observer network. This will give us some real world testing of the framework.
We have some other projects and exciting things in the works. We’ll be announcing those in the following months.
10.15.13 Onyx Binaries: All Users
Windows .exe: https://github.com/darkcoinproject/darkcoin-binaries/raw/master/darkcoin-0.10.15.13-win.zip
Mac OSX: https://github.com/darkcoinproject/darkcoin-binaries/raw/master/darkcoin-0.10.15.13-osx.dmg