tor-parallel-relay-conn/doc/incentives.txt

                 Tor Incentives Design Brainstorms

1. Goals: what do we want to achieve with an incentive scheme?

1.1. Encourage users to provide good relay service (throughput, latency).
1.2. Encourage users to allow traffic to exit the Tor network from
     their node.

2. Approaches to learning who should get priority.

2.1. "Hard" or quantitative reputation tracking.

   In this design, we track the number of bytes and throughput in and
   out of nodes we interact with. When a node asks to send or receive
   bytes, we provide service proportional to our current record of the
   node's value. One approach is to let each circuit be either a normal
   circuit or a premium circuit, and nodes can "spend" their value by
   sending and receiving bytes on premium circuits: see section 4.1 for
   details of this design. Another approach (section 4.2) would treat
   all traffic from the node with the same priority class, and so nodes
   that provide resources will get and provide better service on average.

2.2. "Soft" or qualitative reputation tracking.

   Rather than accounting for every byte (if I owe you a byte, I don't
   owe it anymore once you've spent it), instead I keep a general opinion
   about each server: my opinion increases when they do good work for me,
   and it decays with time, but it does not decrease as they send traffic.
   Therefore we reward servers who provide value to the system without
   nickle and diming them at each step. We also let them benefit from
   relaying traffic for others without having to "reserve" some of the
   payment for their own use. See section 4.3 for a possible design.

2.3. Centralized opinions from the reputation servers.

   The above approaches are complex and we don't have all the answers
   for them yet. A simpler approach is just to let some central set
   of trusted servers (say, the Tor directory servers) measure whether
   people are contributing to the network, and provide a signal about
   which servers should be rewarded. They can even do the measurements
   via Tor so servers can't easily perform only when they're being
   tested. See section 4.4.

2.4. Reputation servers that aggregate opinions.

   The option above has the directory servers doing all of the
   measurements. This doesn't scale. We can set it up so we have "deputy
   testers" -- trusted other nodes that do performance testing and report
   their results. If we want to be really adventurous, we could even
   accept claims from every Tor user and build a complex weighting /
   reputation system to decide which claims are "probably" right.

3. Related issues we need to keep in mind.

3.1. Relay and exit needs to be easy and usable.

   Implicit in all of the above designs is the need to make it easy to
   run a Tor server out of the box. We need to make it stable on all
   common platforms (including XP), it needs to detect its available
   bandwidth and not overreach that, and it needs to help the operator
   through opening up ports on his firewall. Then we need a slick GUI
   that lets people click a button or two rather than editing text files.

   Once we've done all this, we'll need to face the big question: is
   most of the barrier to growth caused by the unusability of the current
   software? If so, are the rest of these incentive schemes superfluous?

3.2. The network effect: how many nodes will you interact with?

   One of the concerns with pairwise reputation systems is that as the
   network gets thousands of servers, the chance that you're going to
   interact with a given server decreases. So if in 90% of interactions
   you're acting for the first time, the "local" incentive schemes above
   are going to degrade. This doesn't mean they're pointless -- it just
   means we need to be aware that this is a limitation, and plan in the
   background for what step to take next.

3.3. Guard nodes

   As of Tor 0.1.1.11, Tor users pick from a small set of semi-permanent
   "guard nodes" for their first hop of each circuit. This seems to have
   a big impact on pairwise reputation systems since you will only be
   cashing in on your reputation to a few people, and it is unlikely
   that a given pair of nodes will both use the other as guard nodes.

   What does this imply? For one, it means that we don't care at all
   about the opinions of most of the servers out there -- we should
   focus on keeping our guard nodes happy with us.

   One conclusion from that is that our design needs to judge performance
   not just through direct interaction (beginning of the circuit) but
   also through indirect interaction (middle of the circuit). That way
   you can never be sure when your guards are measuring you.

3.4. Restricted topology: benefits and roadmap.

   As the Tor network continues to grow, we will need to make design
   changes to the network topology so that each node does not need
   to maintain connections to an unbounded number of other nodes. For
   anonymity's sake, we're going to partition the network such that all
   the nodes have the same belief about the divisions and each node is
   in only one partition. (The alternative is that every user fetches
   his own random subset of the overall node list -- this is bad because
   of intersection attacks.)

   Therefore the "network horizon" for each user will stay bounded,
   which helps against the above issues in 3.2 and 3.3.

   It could be that the core of long-lived servers will all get to know
   each other, and so the critical point that decides whether you get
   good service is whether the core likes you. Or perhaps it will turn
   out to work some other way.

   A special case here is the social network, where the network isn't
   partitioned randomly but instead based on some external properties.
   More on this later.

3.5. Profit-maximizing vs. Altruism.

   There are some interesting game theory questions here.

   First, in a volunteer culture, success is measured in public utility
   or in public esteem. If we add a reward mechanism, there's a risk that
   reward-maximizing behavior will surpass utility- or esteem-maximizing
   behavior.

   Specifically, if most of our servers right now are relaying traffic
   for the good of the community, we may actually *lose* those volunteers
   if we turn the act of relaying traffic into a selfish act.

   I am not too worried about this issue for now, since we're aiming
   for an incentive scheme so effective that it produces thousands of
   new servers.

3.6. What part of the node's performance do you measure?

   We keep referring to having a node measure how well the other nodes
   receive bytes. But many transactions in Tor involve fetching lots of
   bytes and not sending very many. So it seems that we want to turn
   things around: we need to measure how quickly a node can _send_
   us bytes, and then only send it bytes in proportion to that.

   There's an obvious attack though: a sneaky user could simply connect
   to a node and send some traffic through it. Voila, he has performed
   for the network. This is no good. The first fix is that we only count
   if you're sending bytes "backwards" in the circuit. Now the sneaky
   user needs to construct a circuit such that his node appears later
   in the circuit, and then send some bytes back quickly.

   Maybe that complexity is sufficient to deter most lazy users. Or
   maybe it's an argument in favor of a more penny-counting reputation
   approach.

4. Sample designs.

4.1. Two classes of service for circuits.

4.2. Treat all the traffic from the node with the same service;
     hard reputation system.

4.3. Treat all the traffic from the node with the same service;
     soft reputation system.

   Rather than a guaranteed system with accounting (as 4.1 and 4.2),
   we instead try for a best-effort system. All bytes are in the same
   class of service. You keep track of other Tors by key, and give them
   service proportional to the service they have given you. That is, in
   the past when you have tried to push bytes through them, you track the
   number of bytes and the average bandwidth, and use that to weight the
   priority of their connections if they try to push bytes through you.

   Now you're going to get minimum service if you don't ever push bytes
   for other people, and you get increasingly improved service the more
   active you are. We should have memories fade over time (we'll have
   to tune that, which could be quite hard).

   Pro: Sybil attacks are pointless because new identities get lowest
   priority.

   Pro: Smoothly handles periods of both low and high network load. Rather
   than keeping track of the ratio/difference between what he's done for
   you and what you've done for him, simply keep track of what he's done
   for you, and give him priority based on that.

   Based on 3.3 above, it seems we should reward all the nodes in our
   path, not just the first one -- otherwise the node can provide good
   service only to its guards. On the other hand, there might be a
   second-order effect where you want nodes to like you so that *when*
   your guards choose you for a circuit, they'll be able to get good
   performance. This tradeoff needs more simulation/analysis.

   This approach focuses on incenting people to relay traffic, but it
   doesn't do much for incenting them to allow exits. It may help in
   one way through: if there are few exits, then they will attract a
   lot of use, so lots of people will like them, so when they try to
   use the network they will find their first hop to be particularly
   pleasant. After that they're like the rest of the world though.

   Pro: this is a pretty easy design to add; and it can be phased in
   incrementally simply by having new nodes behave differently.

4.4. Centralized opinions from the reputation servers.

   Have a set of official measurers who spot-check servers from the
   directory to see if they really do offer roughly the bandwidth
   they advertise. Include these observations in the directory. (For
   simplicity, the directory servers could be the measurers.) Then Tor
   servers weight priority for other servers depending on advertised
   bandwidth, giving particularly low priority to connections not
   listed or that failed their spot-checks. The spot-checking can be
   done anonymously, because hey, we have an anonymity network.

   We could also reward exit nodes by giving them better priority, but
   like above this only will affect their first hop. Another problem
   is that it's darn hard to spot-check whether a server allows exits
   to all the pieces of the Internet that it claims to. A last problem
   is that since directory servers will be doing their tests directly
   (easy to detect) or indirectly (through other Tor servers), then
   we know that we can get away with poor performance for people that
   aren't listed in the directory.

5. Types of attacks.

5.1. Anonymity attacks: