| Publication type: | Conference paper |
| Type of review: | Peer review (publication) |
| Title: | The miner's dilemma with migration |
| Authors: | Li, Chuanyun Spychiger, Florian Tessone, Claudio J. |
| et. al: | No |
| DOI: | 10.1109/BRAINS52497.2021.9569793 |
| Proceedings: | Proceedings 2021 of the 3rd Conference on Blockchain Research & Applications for Innovative Networks and Services |
| Page(s): | 97 |
| Pages to: | 104 |
| Conference details: | 3rd Conference on Blockchain Research & Applications for Innovative Networks and Services (BRAINS), Paris, France, 27-30 September 2021 |
| Issue Date: | 2021 |
| Publisher / Ed. Institution: | IEEE |
| ISBN: | 978-1-6654-3924-4 |
| Language: | English |
| Subjects: | Bitcoin; Block withholding attack; Evolutionary game theory; Miner migration |
| Subject (DDC): | 510: Mathematics |
| Abstract: | As an important example of the application of blockchain technology, the Bitcoin network has achieved great success. The network is secured by miners who are nowadays organized in mining pools. In this paper, we consider the “block withholding attack” as introduced by Eyal, where mining pools may infiltrate others to decrease their revenues. However, when two mining pools attack each other and neither controls a strict majority, the so-called miner's dilemma arises. Both pools are worse off than without an attack. Knowing this, pools may make implicit non-attack agreements. Having said this, the miner's dilemma is known to emerge only if no pool controls the majority of the mining power. In this work, we extend the original model to include miner migration and show that the miner's dilemma emerges even for pools whose mining power exceeds 50%. We construct a game, where two mining pools attack each other and use simulation analysis methods to analyze the evolution the pools' mining power, infiltration preferences and revenue densities under the influence of different mining pool sizes and miner migration preferences. The results show that underlying game experiences a phase transition fueled by miners' migration preference. Without migration, it is profitable for a large mining pool to attack the other pool. The higher the migration preference of the miners, the more the game transitions into the miner's dilemma and attacking makes both pools worse off. Once the pools violate their implicit non-attack agreements, their revenues decrease. |
| URI: | https://www.zora.uzh.ch/id/eprint/206307/ https://digitalcollection.zhaw.ch/handle/11475/24246 |
| Fulltext version: | Published version |
| License (according to publishing contract): | Licence according to publishing contract |
| Departement: | School of Management and Law |
| Organisational Unit: | Institute for Organizational Viability (IOV) |
| Appears in collections: | Publikationen School of Management and Law |
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Li, C., Spychiger, F., & Tessone, C. J. (2021). The miner’s dilemma with migration [Conference paper]. Proceedings 2021 of the 3rd Conference on Blockchain Research & Applications for Innovative Networks and Services, 97–104. https://doi.org/10.1109/BRAINS52497.2021.9569793
Li, C., Spychiger, F. and Tessone, C.J. (2021) ‘The miner’s dilemma with migration’, in Proceedings 2021 of the 3rd Conference on Blockchain Research & Applications for Innovative Networks and Services. IEEE, pp. 97–104. Available at: https://doi.org/10.1109/BRAINS52497.2021.9569793.
C. Li, F. Spychiger, and C. J. Tessone, “The miner’s dilemma with migration,” in Proceedings 2021 of the 3rd Conference on Blockchain Research & Applications for Innovative Networks and Services, 2021, pp. 97–104. doi: 10.1109/BRAINS52497.2021.9569793.
LI, Chuanyun, Florian SPYCHIGER und Claudio J. TESSONE, 2021. The miner’s dilemma with migration. In: Proceedings 2021 of the 3rd Conference on Blockchain Research & Applications for Innovative Networks and Services [online]. Conference paper. IEEE. 2021. S. 97–104. ISBN 978-1-6654-3924-4. Verfügbar unter: https://www.zora.uzh.ch/id/eprint/206307/
Li, Chuanyun, Florian Spychiger, and Claudio J. Tessone. 2021. “The Miner’s Dilemma with Migration.” Conference paper. In Proceedings 2021 of the 3rd Conference on Blockchain Research & Applications for Innovative Networks and Services, 97–104. IEEE. https://doi.org/10.1109/BRAINS52497.2021.9569793.
Li, Chuanyun, et al. “The Miner’s Dilemma with Migration.” Proceedings 2021 of the 3rd Conference on Blockchain Research & Applications for Innovative Networks and Services, IEEE, 2021, pp. 97–104, https://doi.org/10.1109/BRAINS52497.2021.9569793.
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