Let's make Fact0rn a solid network - Discussion about difficulty adjustment

[humwerthuz]

Hi there devs, just found this amazing project and i've been studying it... one thing i see it can be improved is difficulty adjustment algorithm, right now it is -very much- bitcoin vanilla and hell that has huge issues for small networks like this one. The main problem is that it leaves the network open to hash power attacks, miners will dump hashing power on network while difficulty is low and leave when it rises, effectively leaving the network stuck until difficulty comes back down again. Stuck network means stuck transactions, and stuck transactions means low liquidity, reducing the appeal for legitimate miners and also traders that don't want their assets stucks for hours.

I've around the cryptoworld since 2018, and at that time, i helped a local project (CHAUCHA - Ticker CHA) to solve exactly this issue, so we ported a novel -at the time- algorithm -Dark Gravity Well v3- to the bitcoin code, we tested it and it worked flawlessly, so the project's owners merged that code and then a hardfork happend. (Original commit with changes is here humwerthuz/chauchera-new@c5377c9)

I'm pretty sure that by this time there have been some improvements on those algorithms, so if the community likes the idea we could start working on that upgrade/improvement.

What are your thoughs?