Bitcoin: a new Proof-of-Work system with reduced variance

07/12/2022
by   Danilo Bazzanella, et al.
0

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 the variance of the reward and thus the mining enterprise risk extremely high. To address this problem, Shi in 2016 proposed a theoretical algorithm that would substantially reduce the issue. We introduce a variant of Proof-of-Work that improves on Shi's idea and can be easily implemented in practice. In order to insert a block, the network must not find a single nonce, but must find a few of them. This small change allows for a fairer distribution of rewards and at the same time has the effect of regularizing the insertion time of blocks. This would facilitate the emergence of small pools or autonomous miners.

READ FULL TEXT

page 1

page 2

page 3

page 4

research
02/17/2020

Blockchain using Proof-of-Interaction

This paper we define a new Puzzle called Proof-of-Interaction and we sho...
research
05/22/2018

The Impact of Uncle Rewards on Selfish Mining in Ethereum

Many of today's crypto currencies use blockchains as decentralized ledge...
research
05/23/2019

StrongChain: Transparent and Collaborative Proof-of-Work Consensus

Bitcoin is the most successful cryptocurrency so far. This is mainly due...
research
07/24/2022

Approach to Alleviate Wealth Compounding in Proof-of-Stake Cryptocurrencies

Due to its minimal energy requirement the PoS consensus protocol has bec...
research
02/25/2019

The Matthew Effect in Computation Contests: High Difficulty May Lead to 51

We study the computation contests where players compete for searching a ...
research
07/04/2019

Cryptocurrency Egalitarianism: A Quantitative Approach

Since the invention of Bitcoin one decade ago, numerous cryptocurrencies...
research
09/20/2018

Compounding of Wealth in Proof-of-Stake Cryptocurrencies

Proof-of-stake (PoS) is a promising approach for designing efficient blo...

Please sign up or login with your details

Forgot password? Click here to reset