The difficulty increase per IP can be seen as a form of soft rate limiting, it's shared between all websites (which is where it's different from ordinary rate limiting). In the future we may use IP reputation lists to guide the initial difficulty too - but we haven't implemented that yet.
I think that no perfect captcha can exist, which is inherent to the problem. Proof of work makes different fradeoffs, and perhaps it is cheaper to attack still - I think it's a much more friendly solution for users though (accessibility, privacy, simplicity, fairness, UX).
Maybe in the future the solution would be something like this: a long PoW-based captcha that runs in the background as well as a vision task for the user, whichever gets solved first.
But say, there's a website and it's a likely target, you implement IP protection, fine, the user uses residential proxies. Now your best bet is to go off fingerprinting, but there are marketplaces which sell those too in bulk.
Maybe I'm wrong, but wouldn't the best approach be to stick to human interaction puzzles, which are hard and don't have a set way to solve by a machine(for now)?
Adjusting based on average monthly salary in Bangladesh (157$) [1] and the US (4056$) [2] that would be similar to an American making 5.2$/hour which is surprisingly close to the current minimum wage in the US (7.25$/hour) [3]
So I guess this must be a fairly decent way to earn money if you're young/poor in Bangladesh...
[1] https://tradingeconomics.com/bangladesh/wages#:~:text=Wages%.... [2] https://www.thestreet.com/personal-finance/average-income-in... [3] https://en.wikipedia.org/wiki/Minimum_wage_in_the_United_Sta...
> So I guess this must be a fairly decent way to earn money if you're young/poor in Bangladesh...
Solving dumb captchas is never a fair or decent way to earn money, not when you are poor and definitely not when you are young. Creating living conditions for other human beings where they can be easily exploited and used for mindless degrading work such as solving dumb captchas is one of the most grotesque things of the 21st century.
The arms race is bad for everyone, in both examples, but the underlying problem is a fundamental one of misaligned incentives.