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Mining for Bitcoins is a high-risk high-reward activity. Miners, seeking to reduce their variance and earn steadier rewards, collaborate in pooling strategies where they jointly mine for Bitcoins. Whenever some pool participant is…

Computer Science and Game Theory · Computer Science 2017-03-14 Ben A. Fisch , Rafael Pass , Abhi Shelat

In this paper we describe the various scoring systems used to calculate rewards of participants in Bitcoin pooled mining, explain the problems each were designed to solve and analyze their respective advantages and disadvantages.

Distributed, Parallel, and Cluster Computing · Computer Science 2011-12-22 Meni Rosenfeld

PHICOIN (PHI) is a high-performance cryptocurrency based on the Proof-of-Work (PoW) mechanism. It aims to provide ordinary users with decentralized participation opportunities through an improved and innovative mining algorithm and fair…

Cryptography and Security · Computer Science 2024-12-25 Guang Yang , Peter Trinh , Sannan Iqbal , Justin Zhang

Blockchain, the technology behind the popular Bitcoin, is considered a "security by design" system as it is meant to create security among a group of distrustful parties yet without a central trusted authority. The security of blockchain…

Cryptography and Security · Computer Science 2020-09-02 Yang Xiao , Ning Zhang , Wenjing Lou , Y. Thomas Hou

One of the most important features of blockchain protocols is decentralization, as their main contribution is that they formulate a distributed ledger that will be maintained and extended without the need of a trusted party. Bitcoin has…

Cryptography and Security · Computer Science 2023-07-25 Aikaterini-Panagiota Stouka , Thomas Zacharias

Proof of Stake (PoS) blockchains offer promising alternatives to traditional Proof of Work (PoW) systems, providing scalability and energy efficiency. However, blockchains operate in a decentralized manner and the network is composed of…

Distributed, Parallel, and Cluster Computing · Computer Science 2025-04-25 Faisal Haque Bappy , Tariqul Islam , Kamrul Hasan , Md Sajidul Islam Sajid , Mir Mehedi Ahsan Pritom

Blockchain applications that rely on the Proof-of-Work (PoW) have increasingly become energy inefficient with a staggering carbon footprint. In contrast, energy-efficient alternative consensus protocols such as Proof-of-Stake (PoS) may…

Cryptography and Security · Computer Science 2021-01-05 Muhammad Saad , Zhan Qin , Kui Ren , DaeHun Nyang , David Mohaisen

This paper studies to what extent the cost of operating a proof-of-work blockchain is intrinsically linked to the cost of preventing attacks, and to what extent the underlying digital ledger security budgets are correlated with the…

General Economics · Economics 2021-02-17 Pavel Ciaian , d'Artis Kancs , Miroslava Rajcaniova

In the white book of Bitcion, Satoshi Nakamoto described a bitcoin system that can realize point-to-point online payment without a third-party organization. After supporting this magical application scenario and subverting the traditional…

Cryptography and Security · Computer Science 2022-09-26 Shi Yan

Authorization is challenging in distributed systems that cannot rely on the identification of nodes. Proof-of-work offers an alternative gate-keeping mechanism, but its probabilistic nature is incompatible with conventional security…

Cryptography and Security · Computer Science 2022-09-20 Patrik Keller , Rainer Böhme

In a blockchain system, consensus protocol as an incentive and security mechanism, is to ensure the participants to build the block honestly and effectively. There are different consensus protocols for blockchain, like Proof of work (PoW),…

Distributed, Parallel, and Cluster Computing · Computer Science 2019-03-25 Zhongli Dong , Young Choon Lee , Albert Y. Zomaya

While Proof-of-Work (PoW) is the most widely used consensus mechanism for blockchain, it received harsh criticism due to its massive waste of energy for meaningless hash calculation. Some studies have introduced Proof-of-Stake to address…

Distributed, Parallel, and Cluster Computing · Computer Science 2020-04-02 Weilin Zheng , Xu Chen , Zibin Zheng , Xiapu Luo , Jiahui Cui

The consensus protocol is the core of a blockchain system which guarantees its secure and stable operation. Proof of Activity (PoA) is a consensus protocol that tries to address some of the issues pertinent to the most widely used…

Cryptography and Security · Computer Science 2022-11-30 Sina Kamali , Shayan Shabihi , Mohammad Taha Fakharian , Alireza Arbabi , Pouriya Tajmehrabi , Mohammad Saadati , Behnam Bahrak

We propose DIPS Difficulty-based Incentives for Problem Solving), a simple modification of the Bitcoin proof-of-work algorithm that rewards blockchain miners for solving optimization problems of scientific interest. The result is a…

Distributed, Parallel, and Cluster Computing · Computer Science 2022-06-03 Pericles Philippopoulos , Alessandro Ricottone , Carlos G. Oliver

In blockchain systems, especially cryptographic currencies such as Bitcoin, the double-spending and Byzantine-general-like problem are solved by reaching consensus protocols among all nodes. The state-of-the-art protocols include…

Cryptography and Security · Computer Science 2018-08-02 Jianwen Chen , Kai Duan , Rumin Zhang , Liaoyuan Zeng , Wenyi Wang

The security of blockchain systems depends on the distribution of mining power across participants. If sufficient mining power is controlled by one entity, they can force their own version of events. This may allow them to double spend…

Cryptography and Security · Computer Science 2024-03-21 Mary Milad , Christina Ovezik , Dimitris Karakostas , Daniel W. Woods

We argue that the current POW based consensus algorithm of the Bitcoin network suffers from a fundamental economic discrepancy between the real world transaction (txn) costs incurred by miners and the wealth that is being transacted. Put…

Numerical Analysis · Mathematics 2024-04-24 Valdemar Melicher

Proof of Stake (PoS) protocols rely on voting mechanisms to reach consensus on the current state. If an enhanced majority of staking nodes, also called validators, agree on a proposed block, then this block is appended to the blockchain.…

Computer Science and Game Theory · Computer Science 2021-07-20 Stefanos Leonardos , Daniel Reijsbergen , Georgios Piliouras

We present parallel proof-of-work with DAG-style voting, a novel proof-of-work cryptocurrency protocol that, compared to Bitcoin, provides better consistency guarantees, higher transaction throughput, lower transaction confirmation latency,…

Cryptography and Security · Computer Science 2023-12-07 Patrik Keller

Bitcoin is the first of its kind, a truly decentralized and anonymous cryptocurrency. To realize it, it has developed blockchain technology using the concept of `Proof of Work' (PoW). The miners, nodes responsible for writing transaction…

Cryptography and Security · Computer Science 2022-10-14 Yash Chaurasia , Visvesh Subramanian , Sujit Gujar
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