Selecting New PoW Algorithm for GRAFT

Nicehash attacks have been a real nuisance and been cause for frustration for the miners community and community at large, long confirmation times at the exchanges, and other disruptions. Last week we implemented a tweak to the current GRAFT algorithm which we dubbed CryptoNight Waltz (we reduced the current number of iterations to 3/4, hence the name “waltz” as waltz is written in ¾ timing). This change was selected because it is unique, easy to implement and test, and prevents the attackers from using available Nicehash hashing power.

Some community members suggest that GRAFT should go beyond this change and implement different algorithm. Specifically, new CN-GPU is suggested. Note that introduction of completely new algorithm would induce the risk of blockchain failure due to unexpected consequences, which means more comprehensive and prolonged testing is required. Also, if we take this algorithm without any tweak, there will be more than one blockchain on the same algorithm, which contradicts the original goal.

With that said, we would like the community to express their opinions in a form of questionnaire, and in addition to simple voting for particular algorithm name explain the reason, benefits, possible downsides, and risks. Please submit your suggestions here. You can also join discussion on Telegram GRAFT Mining group. It’s important that everyone gets a chance to “chime in”!

Development Update – Jan 31


Over the last week you saw a culmination of development efforts outside of the RTA supernode core track, geared at bringing the ecosystem network to its complete functional state. We published:

Our approach is to release the Exchange Broker and Payment Gateway as simplified, standalone versions using rapid application development tools, with the assumption that in the beginning merchants will run all the modules as a consolidated stack. The next phase will be to extend or rewrite these components to allow independent exchange brokers or merchant service providers to run these modules autonomously.

New RTA Alpha Patch Release

Today, we have released RTA Alpha 4.1 (bugfix patch release)


Cryptonode Fixes:

  • disable logging to tmpdir
  • fix: segfault while logging deleted connections

Cryptonode Known Issues:

  • rarely happening random segfault in p2p server

Supernode Fixes:

  • The program exits gracefully on bind fail.
  • fixed appending X-Callback header caused “Too long header area” error

The github branches are the same as the previous release, so the latest instructions are unchanged.

The Core Team also continues working on Monero13 merge and Stake Transaction validation.

New POW algorithm for Nicehash resistance

Nicehash attacks have been a real nuisance and been cause for frustration for the mining community and community at large, causing long confirmation times at the exchanges and other disruptions. Earlier this week we implemented a tweak to CN8 algorithm we dubbed CryptoNight Waltz, which will prevent the attackers from using available Nicehash hashing power.

We have put together a private testnet. To test download CryptoNight Waltz here


To launch miner on the node, simply run node and enter command “start_mining <wallet_address”>

The main reason we created this testnet is to add the possibility for miner and pool maintainers to add and test support of CryptoNight Waltz. Please reach out to your favorite mining software maintainer or pool operator to get them to update their software.

ColdPay Card

In the background, we’ve been toiling on the ColdPay card, working with the manufacturer on cryptographic algorithms and library support that’s required to support the CryptoNote protocol. We have also been prototyping the multisignature support in order to use the card as a payment mechanism with remote wallets.

At this point we feel comfortable with the proof of concept to move forward with production (assuming there is enough demand). To that end, we will be launching a crowdfunding campaign on IndieGoGo in the upcoming days (counting on your support there!). This crowdfunding process should also help elevate the overall project visibility.

Open Source Development

Finally, as discussed in the State of the Union, we’re moving towards becoming a truer open source project as many of you strongly urged us to do. In addition to publishing the Requests For Comments (RFC’s), we will be creating tasks for independent open source developers. Look for a list of these tasks in the upcoming days.

Best regards,



Last week GRAFT blockchain celebrated its 1st big birthday! We started this journey together one year ago when we launched the Mainnet and 1 year later (although it feels like 20 in blockchain years 🙂 ) we look back on it with feelings representing a spectrum from incredible pride and joy from what we’ve been able to accomplish to a bit of stress and frustration at times due to various attacks and hiccups along the way.

First, the Good

We have worked super hard for the entire year to deliver the base of GRAFT Blockchain Protocol and GRAFT Network ecosystem – 10’s of thousands lines of code, 100’s of architecture and status meetings and decisions, refactoring, optimizations, diagnostics, bug fixing, learning from other projects and science papers, and from the community.

We will let the results speak for themselves – we were able to deliver on all critical parts of the project and then some:

We are very proud of what we’ve been able to accomplish so far – it was no small feat!

The Hiccups

Did we learn a lot in that past year though! Coming into the project with lots of enterprise and startup product design and software development experience, with solid understanding of the math, principles, and techniques of the blockchain and business of payments, but with little practical experience in bringing up a new blockchain, and with limited experience running an open source project, we were in for a very steep learning curve getting up to speed and learning the ropes of this new frontier.

First, we want to own up to the mistakes that we’ve made and the improvements we can make:

1. We should have factored in the cost of mining as a factor for the ICO token price determination. It was difficult to forecast due to the fact that we didn’t know how many miners were going to step in and what the resulting hash rate was going to be, but we should have done more to model it. We also tried to remedy the situation with an idea of an airdrop if the price doesn’t recover – while we had the best intentions in mind with that, we didn’t think it all the way through and ended up retracting.

2. We should have been more upfront with publishing the RTA flow design to allow for feedback sooner – it would have saved us some redesign work.

3. We didn’t do enough to involve the community at various times in the project and didn’t communicate as much or as often as we should have at times.

4. We recognize that the alternative definition of the word “graft” can become an unnecessary hindrance during the commercial adoption phase and considering opening up a rebranding effort in the near future.

Finally, we want to take this opportunity to offer apologies to anyone we may have offended along the way – we realize people have had different expectations jumping into a project like GRAFT and sometimes expressed their grievances in a way that we couldn’t handle. We meant no disrespect – we are just watching out for the health of the project and for the team morale.

Course Corrections

We are taking steps to align with the vision of the community project by opening up design, development, and moving towards including the community into decision making. We have to strike a careful balance of getting the project up to speed before we “let go of the wheel” completely though. Opening up the project to community decision making is very democratic, but will usually lead to a lot of delays and stalling as various groups or individuals will see different solutions to problems and agreements will take time to emerge. DAO mechanism has to be thought out carefully borrowing from and innovating on top of the best practices.

As evidenced by other open source projects, the best strategy in regards to this dynamic is for the core team to lead the initial ramp in technology and business development and then start sharing the responsibility with the community once the community development and governance are strong enough.

To that end, we have implemented a hybrid development approach with a community tree and have opened up the design for community review.,-Proposals-Design,-Papers

Another balancing act that we have to do is balancing the long term and short term goals and approaches. While long term we’re striving for the ultimate in privacy and decentralization, at times we have to make some temporary compromises in order to expedite development, roll-out, or adoption.

What’s Next?

The next phase of the execution is to get ready for the real world adoption, which will include rolling out the RTA supernodes to the mainnet, updating the client (wallet) software, supporting reference software needed for integrations, improving liquidity through larger exchanges, and pursuing various market development efforts via existing channels as well as developing new creative ways to get traction. We’ve got a big year ahead of us!

We are also looking a step ahead from the technology perspective. All technological solutions must continuously evolve in order to survive, and blockchain and payment systems are not exception. As other forward-thinking projects in the field (e.g. Ethereum), we’re looking at migrating to pure proof-of-stake based model in the future with the following objectives:

  • Retaining GRAFT’s marque privacy, real time authorizations, buyer-friendly fee structure, multi-currency support, special merchant transaction flows, custom merchant tokens, participating economy, and more (see original GRAFT white paper for more details)
  • Eliminating Proof of Work altogether*
  • Providing virtually unlimited scalability to enable TPS (transactions per second) rates competitive with traditional payment processing networks
  • Eliminating a prolonged locking of funds in user wallets (both payer and payee) caused by waiting for multiple “block confirmations”
  • Reducing the network latency that affect transaction authorization times to insignificant minimum
  • Adding open banking features that would provide financial benefits to all users

The draft version of the new design and some preliminary proof of concept samples will be published for community review.

* When and if we switch to proof of stake blockchain, all the GRFT tokens will be converted and the total supply will always stay the same.

Wrapping Up

We have done a lot over this past year and learned a lot! We’ve built a solid foundation of a network that addresses three of blockchain and cryptocurrencies most promising areas (payments, loyalty programs, and decentralized exchanges).

At this point, we feel like we are on solid footing with the RTA Supernode and the rest of the ecosystem nearing the finish line, with major design issues having been addressed. We have a solid plan for going forward both technologically and roll-out wise.

There are lots of blockchain projects out there. A lot of them are a sham and a money grab, some are “scientific experiments”, and only a few are working hard on bridging the best technology and science with the real world applications in a genuine attempt to make a fundamental difference. We would like to believe that GRAFT is one of these projects. GRAFT is designed to make the best blockchain-based ideas fit together as puzzle pieces to form a solution that works now and in the future, is flexible and adjustable, lowers the bar to adoption on all sides, provides earning opportunities, and adheres to privacy and security standards of parties involved. It’s not a trivial undertaking, but we believe wholeheartedly that it’s a doable one and it’s never been as close as it is now to come to fruition!

We’d like to think that we know enough to not make mistakes, but we do make them from time to time. What’s important is that we learn from these mistakes and make quick corrections. If there was one thing we’d like to leave you with at this point is keep challenging us in a constructive manner – we’re listening! And keep rooting for GRAFT! Turbulent times like what the market is experiencing, provide opportunities for the best projects to pull ahead and shine. Big things will come, we just need to be patient and persevere.



Nicehash Attacks Update

As many of you know, GRAFT and numerous other projects are being regularly attacked using Nicehash (service providing hash power on demand). The attackers’ goal is to perform a sustained 51% attack to produce an alternative chain that would include their own double-spending transaction in it, and attempt to withdraw the funds from the exchange before the network adopts a new chain.

These attacks are unpleasant for several reasons: 1) the exchanges have to raise number of confirmations leading to very long withdrawal and deposit times, 2) some legitimate transactions get stuck while being written to the alt-chain, and it takes days until they get reversed.

What others have done:

A common approach is to create a small tweak to the hash algorithm, or use existing tweaks.

The downside of this approach is that it requires coordinated changes to the node, miner software, and pool software. (some of it is going to happen organically since miners are incentivized, but it is far from guarantee as practically no software miners support all the changes listed above).

What we plan to do about it:

The best approach to solving this problem at this time is something like ChainLocks, which is using the 2nd layer network to help validate the blockchain. This approach is much more robust and provides a long-term solution to the issue. The “ChainLocks approach” will take some time, however, as it’s reduced from conceptual to practical implementation and will rely on having a robust 2nd tier network to execute it, so we’re looking at 4-6 months out.

We recognize the need to deal with this issue now, however, and as such have decided to implement our own unique CryptoNight variation (more details will be published soon, after we finish preliminary testing). Rolling out this tweak will not be trivial, however, as again, it will require support from mining software and pool software. We will create a separate testnet for the new PoW algorithm and will rely on the miners community to not only test for robustness and unintended consequences, but also engage with the mining and pool software publishers to incorporate the change.

Keep in mind that any new hash algorithm solutions are temporary and are only effective until Nicehash adds support for it, which is driven by economics of the gains for the Nicehash community.

Additional Information

We’ve done some polling among the miners as to what mining software they use and how likely they would be to switch mining software if necessary. Here are some results so far, but we welcome you to provide your feedback as well.


Earlier this week we implemented a tweak to CN8 algorithm we dubbed CryptoNight Waltz, which will prevent the attackers from using available Nicehash hashing power.

We have put together a private testnet. To test download CryptoNight Waltz here Seeds:

To launch miner on the node simply run node and enter command “start_mining

The main reason we created this testnet is to add the possibility for miner and pool maintainers to add and test support of CryptoNight Waltz. Please help reach out to your favorite mining software maintainer or pool operator to get them to update their software. We will not be able to roll this patch out to the Mainnet before we have that support.

GRAFT Development Status Update January 16th, 2019

Today is GRAFT blockchain’s 1st birthday! One year ago, on January 16th, 2018, a team of a few developers and several miners launched the GRAFT mainnet. Happy Birthday, GRAFT blockchain!

This week is shaping up to be big on deliverables:

  • Alpha RTA version 4 – this version brings greatly improved stability to the SuperNode
  • Improved RTA workflow proposal (based on the community input and vulnerabilities found)
  • Exchange broker and sample test application with installation instructions made public on github and made to work on the RTA AlphaNet

Stretch goals:

  • Payment Gateway and BigCommerce plugin on RTA AlphaNet
  • Monero 13 merge

We would like to be more specific and technical in our development updates, so we have included a breakdown by specific tasks for each topic below.

Core Team

  • Making last preparations and bug fixes for Alpha4 release.
  • Working on stack transaction functionality.
  • Progressing on Monero13 merge
  • Working on the next revision of Auth flow and Communication RFCs

Payment Gateway

Preparing for transfer to RTA TestNet

TMS-150 Payment Gateway: Refactor pages

TMS-151 Payment Gateway: Documentation for developers (GitHub description)

TMS-152 Payment Gateway: changing in config file

TMS-157 Exchange Broker: check source code

TMS-159 Payment Gateway: installation test

Exchange Broker

Preparing for transfer to RTA TestNet

TMS-154 Exchange Broker: check configuration file

TMS-153 Exchange Broker: Installation and deployment documentation

TMS-160 Exchange Broker: installation test

ColdPay Card / Hard Wallet

Continuing to do R&D on implementing a smart-card based mobile wallet / payment mechanism

TMS-140 2.3 a) Discovering transaction structure and signing procedure in the Monero testnet: transaction structure and hash base: Monero unsigned tx set & Monero signed tx set discovered and parsed by means of Trezor monero-agent code (

Best Regards,

GRAFT team

Upcoming Wallet Redesign

There are lots of cool features we’re planning for GRAFT and GRAFT wallet in particular. These changes will be rolled out over time as the supporting functionality develops inside the GRAFT network and around it, but we wanted to give you a sneak preview of things to come. 🙂

Improved and Ehnanced Payment Workflow

Those QR codes that you’re scanning off POS actually carry product information inside of them that the wallet can display to the user and store for future recall and analysis.

Rich Transaction Logging

All transactions will be logged – both the sale (RTA) and transfer transactions. What’s more, the sale transactions will store the metadata about the transaction for further analysis.

Improved Login Usability

We hear you – the login needs to be fast and easy, passwords are evil. 🙂

Better Wallet Management

Being able to manage multiple wallets without having to reset the wallet every time.

P2P Transfers connected to Address Book

Ability to launch and manage SuperNodes and Exchange Brokers right from the App

We want to make launching and managing the nodes and brokers super-easy and accessible to everyone.

Integration with CryptoFind

so you can find those locations that accept digital currencies

Integration with ColdPay Wallet / Payment card

Oh, and last but by far not the least, multisignature support in the underlying blockchain and its innovative use with the wallet means that the phone app can still be light without sacrificing security.

As usual, we welcome constructive comments from the community around wallet design and other topics!

GRAFT Development Status Update January 9th, 2019

Hi everyone, this is our first update on GRAFT development activities in 2019!

With the New Year off to a great start, we are closing in on several important milestones and deliverables in Q1 of 2019.

For the past 3 weeks we have been hard at work on:

  • 1. Preparing to the publish payment gateway, exchange broker, and BigCommerce plugin on RTA alphanet
  • 2. Making solid progress with the Monero 13 merge
  • 3. Working on the new proposed RTA flow based on community feedback
  • 4. Solidifying the development tasks for the Beta launch now that all the uncertainties are removed

In the next three months we’re looking at a very busy and aggressive delivery schedule:

Payment Gateway, Exchange Broker (RTA testnet) ww 3
Selective Monero 13 Merge ww 4
BigCommerce plugin ww 5
Payout broker (RTA testnet) ww 7
RTA on Mainnet Testing ww 8
RTA Mainnet Release ww 11

We’re doing our best to adhere to the timelines, but as usual with complex software development, please allow room for potential delays.

The payment gateway, exchange broker and BigCommerce plugin are critical elements to adoption as they represent the user side of the network. As such we’ll be looking for volunteers to help test these. If you’re interested and equipped to test and provide feedback, please join the TG group

The new RTA flow is published here (Special thanks to Jason, @jagerman42 for contributing and consolidating a lot of the feedback)

We look forward to the next month with lots of hard work, but also lots of tangible results coming down the pike!

Best Regards,


Wishing You a Joyous Holiday Season!

GRAFT Weekly Development Status Update December 26th, 2018

Hi Everyone! This is the last update in the outgoing 2018.

It was a difficult but very important year for the GRAFT project. If 2017 was the year of birth for GRAFT ideas, 2018 was the year of birth for the GRAFT network itself: we launched GRAFT mainnet in January 2018. We also designed and developed GRAFT supernodes and launched them on private and then public alpha testnet. We have created mobile and desktop wallets and terminal apps among other things. We continuously improve our design and implementation while getting feedback from the community.

In 2019, we look forward to launching the 2nd layer of GRAFT network on mainnet: RTA supernodes, along with exchange brokers for various crypto and fiat currencies and merchant tokens. We are glad to be building a Payment Network of Tomorrow together with you! May 2019 be healthy and prosperous! Happy New Year!


GRAFT team

GRAFT Weekly Development Status Update December 19th, 2018

Hi everyone, this is our weekly update on GRAFT development activities.

During active public RTA alpha testing, the GRAFT core development team and community have identified several issues with current RTA design, and we are currently working on updating and enhancing the design. All issues and design updates are either already published or will be published soon on github for community review. It’s important to note that there are no fundamental issues in the supernode RTA concept, but some mechanisms such as the authorization sample selection algorithm and supernode proof of stake require some enhancements to ensure overall security and stability of the RTA system. Stay tuned for new and updated RFCs coming.

The core developers also were working on merging recent Monero updates and bug fixes. A couple of hard-to-find deadlocks were fixed, and the fixes are in test cycle right now. Connection management is more robust now. We are working on a “big” Monero merge (we missed some updates but are now catching up), and the first intermediate milestone has been reached.

Meanwhile, the application development team continues working on another part of the GRAFT ecosystem, which we call “customer facing applications”; it includes the mobile and desktop wallet and point of sale apps, payment gateway, hardware payment terminal apps, hardware wallet and payment card (ColdPay), the CryptoFind app, and more. The most important activities in our scope last week were work on an integration plugin for WooCommerce/WordPress (payment gateway), preparation for Verifone testing (terminal app), implementation of Monero transaction multi-signing (hardware wallet on ColdPay card), and Ethereum pay-in exchange broker testing.

Looking forward to another exciting week and Happy GRAFTing!

GRAFT Weekly Development Status Update December 10th, 2018

It’s been a week since the previous dev status update, so here is another update on GRAFT development status.

The first RTA design paper and proposal have been published on github, so the community can review and approve the ideas and make the design even more solid. Please review and leave your feedback. More documents, such as updated, detailed RTA transaction flow, will be released shortly.

The development team has been working on supernode (D)DOS resistance. We’re also finalizing P2P connection management fixes, preparing for a merge of recent Monero releases, and reviewing issues reported by RTA Alpha testers.

Wallet Redesign Preview

There are lots of cool features we’re planning for GRAFT and the GRAFT wallet in particular. These changes will be rolled out over time as the supporting functionality develops inside the GRAFT network and around it, but we wanted to give you a sneak preview of things to come.

The new and redesigned features include rich transactions and improved payment workflows, login usability improvements, better wallets management, multisignature wallet support, the ability to launch and control supernodes from the app, integration with the GRAFT CryptoFind app, integration with the upcoming GRAFT ColdPay card, and quite a few other innovations and improvements.

Happy GRAFTing!