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In a PoW-based blockchain network, mining pools (the solo miner could be regarded as a mining pool containing one miner) compete to successfully mine blocks to pursue rewards. Generally, the rewards include the fixed block subsidies and…

Computer Science and Game Theory · Computer Science 2021-10-20 Jinmian Chen , Yukun Cheng , Zhiqi Xu , Yan Cao

Blockchains have witnessed widespread adoption in the past decade in various fields. The growing demand makes their scalability and sustainability challenges more evident than ever. As a result, more and more blockchains have begun to adopt…

Computer Science and Game Theory · Computer Science 2021-07-12 Shashank Motepalli , Hans-Arno Jacobsen

In most popular public accessible cryptocurrency systems, the mining pool plays a key role because mining cryptocurrency with the mining pool turns the non-profitable situation into profitable for individual miners. In many recent novel…

Distributed, Parallel, and Cluster Computing · Computer Science 2022-06-16 Boyang Li , Qing Lu , Weiwen Jiang , Taeho Jung , Yiyu Shi

The goal of this paper is to establish the general framework of consensus equilibria for Mining-Pool Games in Blockchain Ecosystems, and with the explanation for the stability of in terms of the existence of consensus equilibria related to…

Cryptography and Security · Computer Science 2020-07-01 George Yuan

The energy sustainability of blockchains, whose consensus protocol rests on the Proof-of-Work, nourishes a heated debate. The underlying issue lies in a highly energy-consuming process, defined as mining, required to validate crypto-asset…

Mining blocks in a blockchain using the \textit{Proof-of-Work} consensus protocol involves significant risk, as network participants face continuous operational costs while earning infrequent capital gains upon successfully mining a block.…

Cryptography and Security · Computer Science 2025-11-19 Pierre-Olivier Goffard , Hansjoerg Albrecher , Jean-Pierre Fouque

An open distributed system can be secured by requiring participants to present proof of work and rewarding them for participation. The Bitcoin digital currency introduced this mechanism, which is adopted by almost all contemporary digital…

Cryptography and Security · Computer Science 2014-12-01 Ittay Eyal

It has been known for some time that the Nakamoto consensus as implemented in the Bitcoin protocol is not totally aligned with the individual interests of the participants. More precisely, it has been shown that block withholding mining…

Cryptography and Security · Computer Science 2025-02-07 Cyril Grunspan , Ricardo Perez-Marco

We analyze Bitcoin mining from the perspective of a game and propose an optimal mining model that maximizes profits of pools and miners. The model is a two-stage Stackelberg game in which each stage forms a sub-game. In stage I, pools are…

Computer Science and Game Theory · Computer Science 2021-07-22 David Lajeunesse , Hugo D. Scolnik

The arisen of Bitcoin has led to much enthusiasm for blockchain research and block mining, and the extensive existence of mining pools helps its participants (i.e., miners) gain reward more frequently. Recently, the mining pools are proved…

Computer Science and Game Theory · Computer Science 2020-08-18 Zhihuai Chen , Bo Li , Xiaohan Shan , Xiaoming Sun , Jialin Zhang

We study the strategic considerations of miners participating in the bitcoin's protocol. We formulate and study the stochastic game that underlies these strategic considerations. The miners collectively build a tree of blocks, and they are…

Computer Science and Game Theory · Computer Science 2016-07-11 Aggelos Kiayias , Elias Koutsoupias , Maria Kyropoulou , Yiannis Tselekounis

Blockchain systems often employ proof-of-work consensus protocols to validate and add transactions into hashchains. These protocols stimulate competition among miners in solving cryptopuzzles (e.g. SHA-256 hash computation in Bitcoin) in…

Computer Science and Game Theory · Computer Science 2020-05-13 Venkata Sriram Siddhardh Nadendla , Lav R. Varshney

In a Proof-of-Work blockchain such as Bitcoin mining hashrate is increasing in the block reward. An increase in hashrate reduces network vulnerability to attack (a reduction in security cost) while increasing carbon emissions and…

Cryptography and Security · Computer Science 2025-08-25 Daniel Aronoff

Temporary fork is a fundamental phenomenon in many blockchains with proof of work, and the analysis of temporary fork has recently drawn great attention. Different from existing efforts that focus on the blockchain system factors such as…

Computer Science and Game Theory · Computer Science 2020-11-17 Canhui Chen , Xu Chen , Jiangshan Yu , Weigang Wu , Di Wu

Mining in proof-of-work blockchains has become an expensive affair requiring specialized hardware capable of executing several megahashes per second at huge electricity costs. Miners earn a reward each time they mine a block within the…

Networking and Internet Architecture · Computer Science 2023-08-30 Arti Vedula , Abhishek Gupta , Shaileshh Bojja Venkatakrishnan

To maintain blockchain-based services with ensuring its security, it is an important issue how to decide a mining reward so that the number of miners participating in the mining increases. We propose a dynamical model of decision-making for…

Computer Science and Game Theory · Computer Science 2022-04-13 Kosuke Toda , Naomi Kuze , Toshimitsu Ushio

The Nakamoto consensus protocol underlying the Bitcoin blockchain uses proof of work as a voting mechanism. Honest miners who contribute hashing power towards securing the chain try to extend the longest chain they are aware of. Despite its…

Cryptography and Security · Computer Science 2025-05-22 Mirza Ahad Baig , Krzysztof Pietrzak

It is an important decision-making problem for a miner in the blockchain networks if he/she participates in the mining so that he/she earns a reward by creating a new block earlier than other miners. We formulate this decision-making…

Computer Science and Game Theory · Computer Science 2020-12-15 Kosuke Toda , Naomi Kuze , Toshimitsu Ushio

With the development of decentralized consensus protocols, permissionless blockchains have been envisioned as a promising enabler for the general-purpose transaction-driven, autonomous systems. However, most of the prevalent blockchain…

Computer Science and Game Theory · Computer Science 2018-11-19 Zhengwei Ni , Wenbo Wang , Dong In Kim , Ping Wang , Dusit Niyato

Bitcoin-NG, a scalable blockchain protocol, divides each block into a key block and many micro blocks to effectively improve the transaction processing capacity. Bitcoin-NG has a special incentive mechanism (i.e. splitting transaction fees…

Cryptography and Security · Computer Science 2020-06-23 Taotao Wang , Xiaoqian Bai , Hao Wang , Soung Chang Liew , Shengli Zhang
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