State of the NewYorkCoin Network
In recent months NewYorkCoin has been gaining traction and getting noticed by larger multipools. As a result, the NewYorkCoin network has been taken advantage of by these pools. These large multipools throw upwards of 2 TH/s of hash power at the
NYCoin network for relatively brief periods of time.
This accomplishes two things:
- Allows the miners to near insta-mine nyc blocks at a rate of ~1-2 seconds per block
- Drives difficulty up at times past 12,000 for extended periods, which leaves other pools to pick up the slack as the multipool then backs off until the difficulty lowers and they repeat the process. The community has been doing it's best to
supplement other pools to prevent the network from freezing but there are not enough miners to really compete with that kind of hash power.
Larger pools and anyone mining with large amounts of hashpower are taking advantage of a flaw in the NewYorkCoin network. The flaw itself comes from the difficulty adjust algorithm, Kimoto Gravity Well (KGW), which works well enough if the
hashrate increases are a bit more gradual but is vulnerable to the kinds of hash rate swings we have been seeing lately.
The plus side to this activity is that NewYorkCoin is being noticed by a larger amount of people. This unfortunately is also a negative as more people will learn of this vulnerability and exploit it, leaving the hard working NYCoin miners left to
pick up the pieces with sometimes hour long block times.
As aforementioned, this kind of activity also leaves the network unstable as we cannot accurately guarantee 30 second block times.
Because the core code base is aging and has not had any major security updates since 2014, we are also vulnerable to a broad array of outright attacks. There are flaws in KGW that are widely known and frankly renting hash power for Scrypt based
coins is relatively cheap.
In light of the recent 51% attacks on a variety of coins, the team of NewYorkCoin community developers are taking the measures to secure the NYCoin network, prevent any future attacks and provide consistent block times.
The following technologies are planned to be implemented:
- This is a difficulty adjust algorithm that has proven to be more effective than KGW in handling dramatic hashrate swings. It is not without it's flaws, but combined with the second tech on this list we believe it will give us greater defense from
- By implementing Auxiliary Proof of Work NewYorkCoin can be merge mined with any Scrypt based coin that has a higher difficulty than NYCoin. This means that you can mine something like Litecoin and solve NYC blocks for free when the difficulty
target for NYC is reached. For example, if I have 2 L3+ miners I can mine LTC, Dogecoin, and NYCoin at the same time without adding any additional miners or energy sucking equipment.
This will also give the NYCoin network the benefit of having an insanely high and stable hash rate, provided we can get a couple of the large Litecoin pools to merge mine the coin.
We are already in communication with a couple of pools that are potentially open to the idea.
- (this one is still being researched) Advanced Checkpointing is basically the same as the standard checkpoint system with the exception that checkpoints would be pushed to client wallets from a central location(s) similar to a master node. This
will allow for client wallets to be continuously updated and prevent older client nodes from being a point of attack. For example, the original NYC wallet has checkpoint code in place but the checkpoints are NOT FROM NYCOIN. They are from LTC or BTC
and will do absolutely nothing when presented with a 51% attack. This is not the only vulnerability in the older wallet.
Block Reward Reduction
- The Block Reward Reduction schedule represents a halving of rewards over time as seen in the example below:
- Current block reward - 10,000 nyc
- After block 4,500,000 - 5000 nyc
- After block 5,000,000 - 2500 nyc
- After block 5,500,000 - 1250 nyc
- After block 6,000,000 - 625 nyc
- After block 6,500,000 - 100 nyc
- From block 7,000,000 50 nyc
The first three changes will require a hard fork. We will be doing our very best to ease that transition and we will let everyone know when the code is ready and when a fork will happen. A block reward reduction will also be introduced with this
code however that does not in itself require a hard fork, the other changes do.
We are very excited to bring these security updates to the NewYorkCoin network as we feel it will help bring about long lasting stability and security for the years to come. It will be a fair amount of work but Team NYC will do its best to
make the transition as smooth as possible for everyone involved.
As always, we appreciate all of the support we have received from the NewYorkCoin global community and we look forward to a bright future for NewYorkCoin!