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Grover's algorithm confers on quantum computers a quadratic advantage over classical computers for searching in an arbitrary data set, a scenario that describes Bitcoin mining. It has previously been argued that the only side-effect of…

Quantum Physics · Physics 2020-03-17 Or Sattath

Our aim is to determine conditions for quantum computing technology to give rise to security risks associated with quantum Bitcoin mining. Specifically, we determine the speed and energy efficiency a quantum computer needs to offer an…

Quantum Physics · Physics 2021-10-05 Robert R. Nerem , Daya R. Gaur

Bitcoin already faces a quantum threat through Shor attacks on elliptic-curve signatures. This paper isolates the other component that public discussion often conflates with it: mining. Grover's algorithm halves the exponent of brute-force…

Quantum Physics · Physics 2026-03-30 Pierre-Luc Dallaire-Demers , BTQ Technologies Team

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

In the area of blockchain, numerous methods have been proposed for suppressing intentional forks by attackers more effectively than the random rule. However, all of them, except for the random rule, require major updates, rely on a trusted…

Cryptography and Security · Computer Science 2025-01-03 Akira Sakurai , Kazuyuki Shudo

Mining is the important part of the blockchain used the proof of work (PoW) on its consensus, looking for the matching block through testing a number of hash calculations. In order to attract more hash computing power, the miner who finds…

Cryptography and Security · Computer Science 2021-04-01 Muchuang Hu , Jiahui Chen , Wensheng Gan , Chien-Ming Chen

The key cryptographic protocols used to secure the internet and financial transactions of today are all susceptible to attack by the development of a sufficiently large quantum computer. One particular area at risk are cryptocurrencies, a…

Quantum Physics · Physics 2020-06-07 Divesh Aggarwal , Gavin K. Brennen , Troy Lee , Miklos Santha , Marco Tomamichel

Proof-of-Work (PoW) is a fundamental underlying technology behind most major blockchain cryptocurrencies. It has been previously pointed out that quantum devices provide a computational advantage in performing PoW in the context of Bitcoin.…

Quantum Physics · Physics 2021-05-06 Dan A. Bard , Joseph J. Kearney , Carlos A. Perez-Delgado

We make several contributions that quantify the real-time hash rate and therefore the consensus of a blockchain. We show that by using only the hash value of blocks, we can estimate and measure the hash rate of all miners or individual…

Cryptography and Security · Computer Science 2017-07-04 A. Pinar Ozisik , George Bissias , Brian Levine

Despite all the progress in quantum technologies over the last decade, there is still a dearth of practical applications for quantum computers with a small number of noisy qubits. The effort to show quantum supremacy has been largely…

Quantum Physics · Physics 2022-05-06 Mikhail Y. Shalaginov , Michael Dubrovsky

We study the incentives behind double-spend attacks on Nakamoto-style Proof-of-Work cryptocurrencies. In these systems, miners are allowed to choose which transactions to reference with their block, and a common strategy for selecting…

Computer Science and Game Theory · Computer Science 2023-12-14 Yanni Georghiades , Rajesh Mishra , Karl Kreder , Sriram Vishwanath

In this paper we revisit the mining strategies in proof of work based cryptocurrencies and propose two strategies, we call smart and smarter mining, that in many cases strictly dominate honest mining. In contrast to other known attacks,…

Cryptography and Security · Computer Science 2019-02-13 Guy Goren , Alexander Spiegelman

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

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

We study an adversary who attacks a Proof-of-Work (POW) blockchain by selfishly constructing an alternative longest chain. We characterize optimal strategies employed by the adversary when a difficulty adjustment rule al\`a Bitcoin applies.…

Cryptography and Security · Computer Science 2023-08-30 Tzuo Hann Law , Selman Erol , Lewis Tseng

This work proposes a novel proof-of-work blockchain incentive scheme such that, barring exogenous motivations, following the protocol is guaranteed to be the optimal strategy for miners. Our blockchain takes the form of a directed acyclic…

Cryptography and Security · Computer Science 2022-06-22 Jakub Sliwinski , Roger Wattenhofer

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

Does the proof-of-work protocol serve its intended purpose of supporting decentralized cryptocurrency mining? To address this question, we develop a game-theoretical model where miners first invest in hardware to improve the efficiency of…

Trading and Market Microstructure · Quantitative Finance 2021-06-21 Agostino Capponi , Sveinn Olafsson , Humoud Alsabah

Blockchain systems are designed to produce blocks at a constant average rate. The most popular systems currently employ a Proof of Work (PoW) algorithm as a means of creating these blocks. Bitcoin produces, on average, one block every 10…

Cryptography and Security · Computer Science 2019-08-15 George Bissias , Brian Neil Levine

Bitcoin is a "crypto currency", a decentralized electronic payment scheme based on cryptography. Bitcoin economy grows at an incredibly fast rate and is now worth some 10 billions of dollars. Bitcoin mining is an activity which consists of…

Cryptography and Security · Computer Science 2014-12-03 Nicolas T. Courtois , Lear Bahack
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