Bitcoin LC Network
Steps on the improved network will be the same as for the existing network except for three additions as identified below:
New transactions are broadcasted to all nodes.
Each node collects the new Bitcoin LC transactions into a block.
Each node inserts in its coinbase transaction OP_RETURN:
– the corresponding Bitcoin Core legacy block hash (Bitcoin Core block x + 100);
– a renewable energy mining certificate and;
– the root certificate of the Bitcoin Low Carbon Foundation
Each node works on finding the proof-of-work for its block.
When a node finds a proof-of-work, it broadcasts the block to all nodes.
Nodes accept the block only if all transactions in it are valid, not already spent, and they contain the Bitcoin Core sequential block hash with miner coinbase address with its digital signature authenticated by a public key traceable back to the Bitcoin Low Carbon Foundation trusted root.
Nodes express their acceptance of the block by working on creating the next block using the hash of the accepted block as the previous hash.
Nodes will continue to consider the longest chain to be the correct one and will keep working on extending Bitcoin LC chain.
Since Bitcoin LC relies on the Bitcoin Core’s block hash, it would be near impossible to have long distinctive branches as double-spend transactions would be detected by the other nodes while waiting for the Bitcoin Core correspondent block header. In the event that two separate branches tie, the tie would be broken in the following blocks or so as the next PoW would include the next Bitcoin Core block header, making all nodes switch to the longest chain immediately.
Implementation and Incentive
Implementation of the Bitcoin LC will start at the Bitcoin Core chain block height 700,000 and would begin mining at block 700,001 by waiting for a 100-block buffer in the Bitcoin Core chain. At the point of implementation, the chain will fork into a Bitcoin Core and Bitcoin LC. Holders of coins in Bitcoin Core at the time of the fork will also hold the same amount Bitcoin Low-Carbon coins.
A Bitcoin LC wallet, block explorers and mining pools will be made available. Both chains will exist concurrently, and Bitcoin Core block headers will be used by Bitcoin LC’s PoW.
The protocol will remain exactly the same regarding coinbase rewards to the miners and maintaining the coins in circulation with the same steady addition as per the protocol already in place. Miners will also continue to have the incentive of each transaction fee while the protocol would continue maintaining the inflation balance.
Nodes and miners would not be able to propose a block without a valid digital certificate of renewable energy usage adding the incentive to stay environmentally friendly.
Reclaiming Disk Space and Block Size
The implementation of the hashed Merkle tree and the Segwit in 2017 had the effective block size increased from the original Bitcoin software node. Although, with the widespread adoption of Bitcoin as a store of value and as a peer-to-peer cash system, and since there has been an urgent shift toward greener and sustainable technology, Bitcoin LC will maintain the current block size but can be increased as need in the future.
As Satoshi pointed it out, Moore’s Law continues to predict exponential storage capacity in the future, which will be more than capable of supporting and eventually increasing the Bitcoin LC block size.