Non-Parallelizable Blockchain Mining Consensus

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Solution Overview

Problem

Blockchain networks face challenges in maintaining consensus and security while reducing computational resource usage and energy costs, particularly due to the centralization of mining power and inefficiencies in Proof-of-Work protocols.

Innovation Solution

Implementing a non-parallelizable consensus mechanism using inherently sequential algorithms and multiparty computations, such as RSA key generation and time-lock puzzles, to allocate unique challenges to miners, ensuring security and decentralization.

Engineering Contradictions & Design Principles

VSEngineering Contradiction Analysis

1Productivity

If Proof-of-Work mining uses parallelizable algorithms, then mining productivity increases, but hardware centralization and energy consumption increase

Engineering Contradiction:
Improvemining productivityVSAvoidhardware centralization
Core Design Contradiction:
ProductivityVSDevice complexity

Solution Approach 1:

The patent inverts the traditional approach by using non-parallelizable algorithms for mining instead of parallelizable ones. This reversal prevents hardware advantages from translating into mining advantages, as the sequential nature of the algorithm ensures that computational power does not provide a competitive edge, thereby preventing hardware centralization while maintaining network security.

Inventive Principle:
Principle #13The other way round (Inversion)

Solution Approach 2:

The patent changes the fundamental parameter of the mining algorithm from parallelizable to non-parallelizable. This parameter change fundamentally alters the mining process to be sequential, which eliminates the advantage of using more powerful hardware and reduces the incentive for hardware centralization, while still achieving the goal of secure consensus.

Inventive Principle:
Principle #35Parameter changes

2Speed

If miners use more powerful hardware, then mining speed increases, but energy consumption increases

Engineering Contradiction:
Improvemining speedVSAvoidenergy consumption
Core Design Contradiction:
SpeedVSUse of energy by moving object

Solution Approach 1:

The patent inverts the relationship between hardware power and mining speed by implementing non-parallelizable algorithms. Instead of more powerful hardware leading to faster mining, the sequential algorithm ensures that mining speed becomes independent of hardware capabilities, thereby eliminating the energy consumption penalty associated with using more powerful mining equipment.

Inventive Principle:
Principle #13The other way round (Inversion)

3Use of energy by moving object

If computational requirements for mining are reduced, then energy consumption decreases, but network security may be compromised

Engineering Contradiction:
Improveenergy consumptionVSAvoidnetwork security
Core Design Contradiction:
Use of energy by moving objectVSReliability

Solution Approach 1:

The patent segments the mining process into unique sequential challenges assigned to different miners. Each miner receives a distinct computational task that must be completed in sequence, which maintains the security requirements of Proof-of-Work while reducing overall energy consumption by preventing redundant computations and hardware races.

Inventive Principle:
Principle #1Segmentation

Solution Approach 2:

The system provides self-service security through the inherent properties of non-parallelizable algorithms. The sequential nature of the computation automatically prevents cheating and redundant work without requiring additional energy-intensive verification mechanisms, as the algorithm structure itself enforces the security properties.

Inventive Principle:
Principle #25Self-service

Data Source

PatentEP3970049B1Systems and methods for mining on a proof-of-work blockchain network
Publication Date: 2024.05.22 NCHAIN LICENSING AG
  • EP3970049B1 patent drawingFigure 1
  • EP3970049B1 patent drawingFigure 2
  • EP3970049B1 patent drawing

AI summary

Embodiments of the present disclosure provides protocols, methods and systems which provides advantages such as the resistance of centralisation of mining on a blockchain network, preferably a Proof-of-Work blockchain. A method in accordance with an embodiment may comprise generating a plurality of non-parallelisable challenges (or "puzzles") and allocating one of said plurality of challenges to each miner on the network. The miner uses an inherently sequential (non-parallelisable) algorithm to find a solution to his allocated challenge. The challenges are generated by a committee of nodes, and a new set of challenges is generated for each block.