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Proof-of-Work (PoW) is a popular consensus protocol used by Bitcoin since its inception. PoW has the well-known flaw of assigning all the reward to the single miner (or pool) that inserts the new block. This has the consequence of making…

Distributed, Parallel, and Cluster Computing · Computer Science 2022-07-13 Danilo Bazzanella , Andrea Gangemi

In a previous paper, it was discussed whether Bitcoin and/or its blockchain could be considered a complex system and, if so, whether a chaotic one, a positive response raising concerns about the likelihood of Bitcoin/blockchain entering a…

Cryptography and Security · Computer Science 2019-11-12 Renato P. dos Santos , Melanie Swan

The security of Bitcoin protocols is deeply dependent on the incentives provided to miners, which come from a combination of block rewards and transaction fees. As Bitcoin experiences more halving events, the protocol reward converges to…

Cryptography and Security · Computer Science 2025-09-12 Roozbeh Sarenche , Alireza Aghabagherloo , Svetla Nikova , Bart Preneel

Bitcoin's (BTC) Difficulty Adjustment Algorithm (DAA) has been a source of vulnerability for incentive attacks such as selfish mining, block withholding and coin hopping strategies. In this paper, first, we rigorously study the short-term…

Cryptography and Security · Computer Science 2026-03-24 Mustafa Doger , Sennur Ulukus

Cryptocurrencies have gained popularity due to their transparency, security, and accessibility compared to traditional financial systems, with Bitcoin, introduced in 2009, leading the market. Bitcoin's security relies on blockchain…

Cryptography and Security · Computer Science 2024-11-12 Dinitha Wijewardhana , Sugandima Vidanagamachchi , Nalin Arachchilage

Blockchain plays a crucial role in ensuring the security and integrity of decentralized systems, with the proof-of-work (PoW) mechanism being fundamental for achieving distributed consensus. As PoW blockchains see broader adoption, an…

Systems and Control · Electrical Eng. & Systems 2026-01-07 Xunqiang Lan , Xiao Tang , Ruonan Zhang , Bin Li , Qinghe Du , Dusit Niyato , Zhu Han

We present three very simple variants of the classic Heads or Tails game using chips, each of which contributes to our understanding of the Bitcoin protocol. The first variant addresses the issue of temporary Bitcoin forks, which occur when…

Cryptography and Security · Computer Science 2024-05-08 Cyril Grunspan , Ricardo Perez-Marco

All public blockchains are secured by a proof of opportunity cost among block producers. For example, the security offered by proof-of-work (PoW) systems, like Bitcoin, is due to spent computation; it is work precisely because it cannot be…

Computer Science and Game Theory · Computer Science 2019-08-27 George Bissias , Brian N. Levine , David Thibodeau

A key component of security in decentralized blockchains is proof of opportunity cost among block producers. In the case of proof-of-work (PoW), currently used by the most prominent systems, the cost is due to spent computation. In this…

Cryptography and Security · Computer Science 2020-12-08 George Bissias , Rainer Böhme , David Thibodeau , Brian N. Levine

To implement a blockchain, we need a blockchain protocol for all the nodes to follow. To design a blockchain protocol, we need a block publisher selection mechanism and a chain selection rule. In Proof-of-Stake (PoS) based blockchain…

Cryptography and Security · Computer Science 2023-03-17 Shoeb Siddiqui , Varul Srivastava , Raj Maheshwari , Sujit Gujar

What are the optimal times for an Internet of Things (IoT) device to act as a blockchain miner? The aim is to minimize the energy consumed by low-power IoT devices that log their data into a secure (tamper-proof) distributed ledger. We…

Cryptography and Security · Computer Science 2023-08-21 Anurag Gupta , Vikram Krishnamurthy

Despite the tremendous interest in cryptocurrencies like Bitcoin and Ethereum today, many aspects of the underlying consensus protocols are poorly understood. Therefore, the search for protocols that improve either throughput or security…

Cryptography and Security · Computer Science 2021-09-01 Ignacio Amores-Sesar , Christian Cachin , Anna Parker

A principal vulnerability of a proof-of-work ("PoW") blockchain is that an attacker can re-write the history of transactions by forking a previously published block and build a new chain segment containing a different sequence of…

Cryptography and Security · Computer Science 2023-09-27 Daniel Aronoff , Isaac Ardis

Bitcoin uses blockchain technology to maintain transactions order and provides probabilistic guarantee to prevent double-spending, assuming that an attacker's computational power does not exceed %50 of the network power. In this paper, we…

Cryptography and Security · Computer Science 2024-11-19 Ghader Ebrahimpour , Mohammad Sayad Haghighi

In this paper we revisit some major orthodoxies which lie at the heart of the bitcoin crypto currency and its numerous clones. In particular we look at The Longest Chain Rule, the monetary supply policies and the exact mechanisms which…

Cryptography and Security · Computer Science 2014-12-11 Nicolas T. Courtois

Mining is a central operation of all proof-of-work (PoW) based cryptocurrencies. The vast majority of miners today participate in "mining pools" instead of "solo mining" in order to lower risk and achieve a more steady income. However, this…

Computational Engineering, Finance, and Science · Computer Science 2022-12-15 Panagiotis Chatzigiannis , Foteini Baldimtsi , Igor Griva , Jiasun Li

The blockchain data structure maintained via the longest-chain rule---popularized by Bitcoin---is a powerful algorithmic tool for consensus algorithms. Such algorithms achieve consistency for blocks in the chain as a function of their depth…

Cryptography and Security · Computer Science 2019-11-25 Erica Blum , Aggelos Kiayias , Cristopher Moore , Saad Quader , Alexander Russell

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-Work (PoW) systems face critical challenges, including excessive energy consumption and the centralization of mining power among entities with expensive hardware. Static mining pools exacerbate these issues by reducing competition…

Cryptography and Security · Computer Science 2025-04-25 Rizwanul Haque , SM Tareq Aziz , Tahrim Hossain , Faisal Haque Bappy , Muhammad Nur Yanhaona , Tariqul Islam

Bitcoin's Proof of Work (PoW) mechanism, while central to achieving decentralized consensus, has long been criticized for excessive energy use and hardware inefficiencies \cite{devries2018bitcoin, truby2018decarbonizing}. This paper…

Cryptography and Security · Computer Science 2025-08-19 Mohammad Ishzaz Asif Rafid , Morsalin Sakib