Harvard supercomputing cluster hijacked to mine Dogecoin
arstechnica.com
arstechnica.com
EDIT: Reversible computing (http://en.wikipedia.org/wiki/Reversible_computing) is a possible way to have computationally difficult proof-of-work while minimizing energy consumption.
You could imagine a hypothetical coin that somehow uses proof of data storage and retrieval instead of proof of work. Producing and running tons of harddrives would still require power, but it would be a less.. direct.. requirement.
Mining is supposed to be difficult.
You lost me. What?
This is of course a big simplification, and neglects things like the upfront cost of building the mining equipment.
Therefore, the cost of electricity used should be close to the value of the bitcoins produced.
I have some first-gen ASIC miners and electricity is 20% of revenues at the current price and difficulty. The current-gen miners that are contributing to most of the increase in hash power are even more efficient and many large scale operations have cheap electricity.
I would estimate the current network (25Ph/s) averages around 2-5W per Gh/s, leading to 50-125MW total power use. bbosh in this thread is off by an order of magnitude.
I like DogeCoin (much shibe) but this is still a Bad Thing. It would be much better if the problem being solved to create a blockchain were also useful in some other context, eg protein folding. Of course, some such problems are handled better than others by computers; protein folding is something that humans seem to do well but for which we haven't managed to develop great algorithms yet.
But if part of the work can be done in the human brain rather than in a CPU/GPU/ASIC, is that bad? The current computation model basically means that mining rewards go to whoever invests the most capital, ie has money to throw at the problem. This is inherently inequitable, because it means people with more money or a willingness to appropriate the equipment of others will mine/dig/discover more coin. Of course, the argument is that since mining is rather random, in theory you can start mining on your small CPU tomorrow and hit some coin, or get a random amount of coin for a fixed amount of mining. But random rewards devalue expertise and experience in favor of an unnaturally even probability distribution. I really think the computational abstraction is a barrier to cyptocurrency adoption, because ultimately your economic incentive is only as good as people's adoption of a sunk cost fallacy.
100% Proof of stake, 1 minute blocks, no mining.
You replace a "dumb heat generator" with a dogcoin miner.
That is: turn down the heating in your place and let the computer heat it up a bit.
And of course electric heating is typically more expensive than natural gas, fuel oil, coal, municipal steam, etc... If you are turning down the natural gas and turning up the electric heaters, you are burning through money.
Mining is generally considered to be inherently power hungry but it need not be. It’s a consequence of making the proof of work computationally intensive. If computation is minimized in favor of random access to gigabytes of memory (incurring long latencies), then mining will require large investments in RAM but relatively little power.
Cuckoo Cycle represents a breakthrough in three important ways:
1) it performs only one very cheap siphash computation for about 3.3 random accesses to memory,
2) its memory requirement can be set arbitrarily and doesn't allow for any time-memory trade-off.
3) verification of the proof of work is instant, requiring 1 sha256 and 42 siphash computations.
Runtime in Cuckoo Cycle is completely dominated by memory latency. It promotes the use of commodity general-purpose hardware over custom designed single-purpose hardware.
Other features:
4) proofs take the form of a length 42 cycle in the Cuckoo graph.
5) it has a natural notion of (base) difficulty, namely the number of edges in the graph; above about 60% of size, a 42-cycle is almost guaranteed, but below 50% the probability starts to fall sharply.
6) running time for the current implementation on high end x86 is under 24s/GB single-threaded, and under 3s/GB for 12 threads.
7) making cuckoo use a significant fraction of the typical memory of a botnet computer will send it into swap-hell, and likely alert its owner.
What's the defense against someone with a lot of money that can buy an ASIC farm or a memory farm or a whatever farm that is needed for the computation? How much money should the chip builders charge for that? How many energy can be used in the production of the critical item?
Essentially, if 50 BCT cost ~$25000, to create them you must just burn ~$25000 of petrol, i.e. 250 barrels. If you burn only 200 barrels, someone will find a faster method burning 201 that is still profitable. (You can choice to burn them during mining, or during the chips fabrication, or during the chip design, or any combination of them.)
All this means this tech won't fit decentralization well.
[1]http://www.eetimes.com/author.asp?section_id=36&doc_id=13209...
https://ripple.com/wiki/Consensus - http://bitcoin.stackexchange.com/questions/10180/what-are-th... - http://bitcoin.stackexchange.com/questions/13330/what-is-the...
If nerds will do this for nothing but internet points, it doesn't surprise me that semi-public resources will be exploited when there's a monetary incentive involved.
If I am the one paying for an office at $500 a month that includes all electricity usage, is it fair to plug in a ton of mining hardware and profit / subsidize myself? What if I manage to use more than $500 worth of electricity?
Is shared space even setup for monitoring individual renter's usage behavior? I don't think so.
edit: note, I do mine Doge but with my own stuff at home
(I'll admit that I've used a "heater.exe" for warming my hands with a laptop on a cold day...)
(and incoming bandwidth allowance -- yay, web crawler)
Original e-mail Harvard sent last week:
------
Dear all,
I really hate having to send notes like this to our community - especially one as smart, gifted and talented as you all are, but anyway here goes...
Yesterday we were alerted to an unfortunate situation by one of our community members using the cluster who spotted an anomaly with a set of compute nodes.
Long story short, a "dogecoin" (bitcoin derivative) mining operation had been set up on the cluster consuming significant resources in order to participate in a mining contest.
I do want to also quickly state that we do not inspect, examine or look at algorithms and codes that are executing on the cluster, we respect your science and assume we are all good citizens. However, in the course of business, or as happened yesterday, if we are alerted to unexpected behavior we always investigate the cause of any issue.
So, to put this simply:
Harvard resources can not be used for any personal or private gain or any non research related activity.
Accordingly, any participation in "Klondike" style digital mining operations or contests for profit requiring Harvard owned assets to examine digital currency key strength and length are strictly prohibited for fairly obvious reasons. In fact, any activities using our shared resources for any non scientific purpose that results or does not actually result in personal gain are also clearly and explicitly denied.
As a result, and as guidance and as warning to you all, I do need to say that the individual involved in this particular operation no longer has access to any and all research computing facilities on a fully permanent basis.
Don't let this happen to you.
This kind of use was sorta obvious since the dawn of Bitcoin (and even before; in my high school people were running SETI@HOME screen savers on all school computers to build up ranking points for their team). I'm not sure why so many people act surprised.
Do you think Harvard would have paid for a custom-build scrypt-coin miner if someone wrote a real academic proposal for it?
Don't need to necessarily use the mainstream profitable ones
It debuted in 61st place in 6/2008. By 11/2010 it had fallen to 434 and has since dropped entirely off the list.
At 6 years old it's fairly long in the tooth now.