Remora: A Cryptocurrency With Additional Block Hardening by Recording the Block Hashes on Another Blockchain and Variable Block Rewards
I have an idea to create a cryptocurrency in which some of the block hashes are written on another blockchain.
For example, the blockchain can only use proof of stake as consensus mechanisms for most blocks, but at a variable interval, the block hash is written to the blockchain of another cryptocurrency that uses proof of work (i.e. Bitcoin).
I named this cryptocurrency Remora after the parasitic fish attaching themselves to, and riding about on, sharks.
As an incentive, the miner who (when adding a block to the Remora blockchain) pays the network fee for storing the hash of a block on the Bitcoin blockchain, receives an additional block reward paid in Remora coins.
For example, for adding a block only with the consensus mechanism of proof of stake, the miner receives 10 Remora coins, but if he pays the Bitcoin network fee for including the hash of this block in the Bitcoin blockchain – he will receive an additional block reward of 1'000 Remora coins.
I call this process of including a hash in another blockchain additional block hardening. I call the blocks to which this process is applied additionally hardened blocks.
This consensus mechanism of additional block hardening can be applied not only when using proof of stake as the main consensus mechanism, but also when using proof of work or other consensus mechanisms.
For the system to continue to operate when the price of Bitcoin increases compared to Remora, the rules of the Remora blockchain allow miners to do additional block hardening at will, and not for each block. The amount of the block reward for additional block hardening will depend on the block number (the counter is reset after adding an additionally hardened block).
For example, if a miner adds a 10th block to the blockchain after the last additionally hardened block, the additional block reward is 10 times higher (the miner will receive an additional 10,000 Remora coins for the performed additional block hardening).
This mechanism will allow the cryptocurrency to continue to function if the price of Bitcoin rises relative to Remora. Most blocks will be created with proof of stake only (the base consensus mechanism), but some of the blocks will be additionally hardened with proof of work (additional block hardening by writing the hash of the block in the Bitcoin blockchain). The higher the price of Remora coins, the more of the blocks will be additionally hardened.
To further increase the reliability of the system, there is a mechanism for increasing the block reward (variable block reward).
In case for the last 1'000 blocks, there is not a single additionally hardened block, the block reward for the additional block hardening is increased by 20%.
In case for the last 1'000 blocks over 50% of the blocks have been additionally hardened - the block reward for additional block hardening is reduced by 20%.
The Remora consensus mechanism can also be applied to existing cryptocurrencies, such as Ethereum (once it starts working with proof of stake).
The additional block hardening can be applied also to cryptocurrencies using proof of work or other consensus mechanisms. For example, it can be applied to DogeCoin, Bitcoin Cash, etc.
Author: Valentin Stoykov
vstoykov@users.sourceforge.net
20 May 2021
IPFS: QmNNUEmfLGEbXqWCoSGa2AE8hxR7QuUjou3VVepZK4JrTf
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