Flow Control
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The assumptions of TCP are wrong, so TCP's flow control is broken - that's one of my rationale to create a new protocol. So what are my assumptions, and what do I propose instead?

Let's first look at TCP: What does TCP assume?

TCP defines a window size. This equals the amount of data which is in flight, so supposed there is no packet drop.  The tail is the last acknowledged packet, and the head is the last sent packet.  TCP has a "slow start", so it starts with one packet, and increases the number of segments in the window depending on how many segments are acknowledged.  This gives an exponential growth phase, until there's one packet drop.  The assumption here is that when the sender sends too fast, packets are dropped.  If a packet is dropped, TCP will half the window size, and slowly grow it by one segment per round-trip - until again a packet is lost.

This means the number of packets in flight oscillates by a factor of two.  So what about optimal buffer size?  The optimal buffer size for a TCP connection is capable to keep packets for 0.5 RTT - because that's the same amount of packets that fit onto the wire (they take 0.5 RTT from source to destination).  This is something so far nobody has implemented, because it requires that the buffering router measures the RTT for each TCP connection.  This measurement is possible in theory, it can be measured from the first syn to the first ack.  In practice, there's usually no scientific method applied to choose the right buffer size; if you are lucky, there had been a few experiments, selecting some buffer size on an educated guess, and the router has a global FIFO.

The worst problem with this algorithm is on networks with poor quality, such as wireless networks, where packet drops are relatively frequent, and have nothing to do with the sender rate.  The next problem is that a filled up buffer in the router delays all other connections, including low-latency low-bandwidth real-time protocols.

So that's not the way to go.  We must reevaluate the assumptions and find a solution.

The assumptions

The solution

Since network hops which may help with flow control are not likely to be available soon (and probably also not the right solution), the solution has to do end-to-end flow control (like TCP/IP), working with single (unfair) FIFO queuing. The flow control should be fair (n competing connections should get n of the data rate each), and it should not completely yield to TCP, even in a buffer-bloat configuration.

The approach is the following: The sender sends short bursts of packets (default: 8 packets per burst), and the receiver measures the timing when these packets arrive - from earliest to latest, and calculates the achievable data rate. The receiver sends this data rate back to the sender, which adjusts its sending rate (to make sure the rate is not faked, the receiver must prove it has received at least most packets). Data rate calculation accumulates rates over several bursts (default: 4 bursts per block), and sends only a final result, i.e. one acknowledge per 32 packets. This is the P part of a PID controller; the receiver constantly provides measurements of acheivable rates, and the sender adjusts this rate on every ack received.

The sender tracks two things: Slack and slack-growth (I and D of the PID controller). Slack, i.e. accumulated buffer space, provides an exponential slowdown, where a factor of two equates to either half the difference of maximum and minimum observed slack or 20ms (whatever is larger).

Slack-growth is observed by the timing of the last burst compared with the first burst in the four burst sequence. This tells us how excessive our data rate is. To compensate, we need to multiply that time with the bursts in flight, and add that as extra delay after the next burst we send. This allows the buffer to recover.

The whole algorithm, sender and receiver side, fits into about 100 lines at the moment, which includes the rate control and burst generation on the sender side, but does not include all the debugging and statistics code to observe what happens.

To get fast long-distance connections up to speed quickly, the first rate adjustment will also up the packets in flight. Later, each ack allows for further packets in flight (default: a maximum of two bursts, i.e. 64 packets) before the next ack is expected. To achieve this, the sender measures round trip delay.

This helps to detect broken connections - if the receiver goes offline or has been suspended temporarily, the sender stops. It can't call back the packets in flight, for sure, these will get lost, and might temporarily fill up buffers.

The algorithm is measured as fair and sufficiently stable for several parallel connections to the same sender, and it works together with parallel TCP and LEDBAT traffic.

Fair Queuing

Instead of using a single FIFO buffer policy, routers (or, in net2o terminology, switches) can help fairness: Under congestion, each connection is given its own FIFO, and all filled FIFOs of the same QoS level are served in a round-robin fashion.  This allows the receiver to accurately determine the actual achievable bandwidth, and does not trigger the more heuristical delay-optimizing strategies.  Also, this buffer policy allows to have different flow control algorithms on different protocols, and still have fairness.