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Auxiliary Proof-of-Work

3 min read
Pronunciation
[awg-zil-yuh-ree proof-uhv-wurk]
Analogy
Think of Auxiliary Proof-of-Work as a verification system for carpooling between two cities. Instead of requiring people to make two separate trips (one for each city), this system allows a driver to prove they've made the journey once while carrying passengers for both destinations. When arriving at the second city, rather than making the journey again, the driver presents evidence—such as timestamped photos and passenger signatures from both cities—proving they made a single journey that legitimately served both routes. This evidence verifies that the proper work was done, even though the driver's primary destination was elsewhere.
Definition
A blockchain protocol extension that enables merge mining by allowing a blockchain to accept proof-of-work from another chain as valid. Auxiliary Proof-of-Work (AuxPoW) creates a mechanism for secondary chains to leverage the mining power of a primary chain by verifying that miners included the secondary chain's block hash when mining the primary chain, effectively recycling the same computational work across multiple networks.
Key Points Intro
Auxiliary Proof-of-Work implements four essential components that enable secure proof sharing between blockchains.
Key Points

Cross-Chain Verification: Enables one blockchain to cryptographically verify work performed primarily for another blockchain.

Header Extensions: Modifies block structures to include additional fields for referencing parent chain data and verification proofs.

Coinbase Coupling: Requires miners to include the auxiliary chain's block hash in the parent chain's coinbase transaction.

Difficulty Independence: Maintains separate difficulty adjustments for each chain while allowing the same proof-of-work to satisfy both when applicable.

Example
A developer implements Auxiliary Proof-of-Work for a new DNS-related blockchain that wants to leverage Bitcoin's robust mining ecosystem. In the AuxPoW implementation, when a miner constructs a block for the DNS chain, they don't immediately mine it. Instead, they calculate its header hash and include that hash within the coinbase transaction of a Bitcoin block they're mining. If they successfully mine the Bitcoin block, they then construct a special proof for the DNS chain that includes: the Bitcoin block header containing the valid proof-of-work, the coinbase transaction containing the DNS block hash, and a Merkle path proving the coinbase transaction was included in the Bitcoin block. The DNS network accepts this package as proof that significant computational work was performed for a block containing their transactions, without requiring dedicated mining power separate from Bitcoin's ecosystem.
Technical Deep Dive
Auxiliary Proof-of-Work implements a rigorous cryptographic validation system to ensure work legitimately applies to both chains. An AuxPoW block header typically extends the standard block header format with additional fields including: the parent block header (containing the actual proof-of-work), the parent block's coinbase transaction, a Merkle path proving the coinbase contains the auxiliary block hash, and potentially a Merkle path proving the coinbase transaction's inclusion in the parent block. The validation process involves several critical checks: (1) verifying the parent chain block header has sufficient proof-of-work to meet the auxiliary chain's difficulty target, (2) confirming the auxiliary block hash appears in the parent block's coinbase transaction, (3) validating the Merkle path proves the coinbase transaction belongs to the parent block, and (4) checking various anti-manipulation rules such as ensuring the parent block's version number prevents it from being an AuxPoW block itself (preventing recursive merge mining). Some implementations add constraints to prevent time-warp attacks, such as requiring the auxiliary chain block's timestamp to be within reasonable bounds of the parent block's timestamp. The protocol must also handle edge cases like chain reorganizations on the parent chain, potentially invalidating previously accepted auxiliary chain blocks if their corresponding parent blocks are orphaned.
Security Warning
When implementing Auxiliary Proof-of-Work, careful attention must be paid to validation rules preventing "parent block withholding" attacks, where a miner could deliberately withhold the parent block from the parent network while still submitting it to the auxiliary network, potentially facilitating double-spending attacks.
Caveat
While Auxiliary Proof-of-Work enables efficient security sharing, it creates a technical dependency on the parent blockchain's structure and proof-of-work algorithm, limiting flexibility for the auxiliary chain. Any changes to the parent chain's block format or mining algorithm may require corresponding updates to the auxiliary chain's validation logic. Additionally, AuxPoW creates asymmetric relationships where the parent chain derives no security benefit from the arrangement, which may limit incentives for parent chain participants to support auxiliary chains unless they have specific interest in those projects. The effectiveness of AuxPoW also depends on miners expending the additional effort to configure their mining software for merge mining, which they may not prioritize if the auxiliary chain's rewards are minimal compared to the parent chain.

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