Targeted Nakamoto: A Bitcoin Protocol to Balance Network Security and Energy Consumption

• URL: http://arxiv.org/abs/2405.15089v1
• Date: Thu, 23 May 2024 22:26:25 GMT
• Title: Targeted Nakamoto: A Bitcoin Protocol to Balance Network Security and Energy Consumption
• Authors: Daniel Aronoff,
• Abstract summary: Targeted Nakamoto is a Proof-of-Work protocol augmentation that incentivizes miners to hone in on a target hashrate interval. When hashrate is above target a ceiling is placed on the block reward a miner can receive. When hashrate is below target a floor is placed underneath the miner's block reward.
• Score: 0.0
• License: http://creativecommons.org/licenses/by/4.0/
• Abstract: 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 electricity cost (an increase in externalities cost). This implies a tradeoff in total cost at different levels of hashrate and the existence of a hashrate interval where total cost is minimized. Targeted Nakamoto is a Proof-of-Work protocol augmentation that incentivizes miners to hone in on a target hashrate interval. When hashrate is above target a ceiling is placed on the block reward a miner can receive. When hashrate is below target a floor is placed underneath the miner's block reward. Monetary neutrality is maintained by a proportional increase in spending potential among addresses holding UTXO's to match a deduction from total block reward when the ceiling is operative and a proportional reduction in spending potential among addresses holding UTXO's to match an increase over the total block reward when the floor is binding.

Related papers

• Manifoldchain: Maximizing Blockchain Throughput via Bandwidth-Clustered Sharding [8.782016890474873]
  Bandwidth limitation is the major bottleneck that hinders scaling throughput of proof-of-work blockchains. We propose Manifoldchain, a sharding protocol that alleviates the impact of slow miners to maximize blockchain throughput.
  arXiv  Detail & Related papers  (2024-07-23T08:52:51Z)
• The Latency Price of Threshold Cryptosystem in Blockchains [52.359230560289745]
  We study the interplay between threshold cryptography and a class of blockchains that use Byzantine-fault tolerant (BFT) consensus protocols. Existing approaches for threshold cryptosystems introduce a latency overhead of at least one message delay for running the threshold cryptographic protocol. We propose a mechanism to eliminate this overhead for blockchain-native threshold cryptosystems with tight thresholds.
  arXiv  Detail & Related papers  (2024-07-16T20:53:04Z)
• PoW Security-Latency under Random Delays and the Effect of Transaction Fees [33.689236895881216]
  Recent studies have shown that PoW protocol is secure under random delay models as well. We analyze the security-latency problem, i.e., how secure a block is, after it becomes k-deep in the blockchain.
  arXiv  Detail & Related papers  (2024-05-07T17:57:31Z)
• Transaction Capacity, Security and Latency in Blockchains [35.16231062731263]
  We analyze how secure a block is after the block becomes k-deep, i.e., security-latency, for Nakamoto consensus. We compare our results for Nakamoto consensus under bounded network delay models and obtain analogous bounds for safety violation threshold.
  arXiv  Detail & Related papers  (2024-02-15T17:43:13Z)
• Dynamic Mining Interval to Improve Blockchain Throughput [0.4915744683251149]
  We propose a Dynamic Mining Interval (DMI) mechanism that adjusts mining intervals in response to block size and trading volume. We also discuss the DMI selection mechanism for adjusting mining intervals based on various factors.
  arXiv  Detail & Related papers  (2023-12-21T17:03:53Z)
• Undetectable Selfish Mining [4.625489011466493]
  A strategic Bitcoin miner may profit by deviating from the intended Bitcoin protocol. We develop a selfish mining variant that is provably *statistically undetectable* We show that our strategy is strictly profitable for attackers with $38.2% ll 50%$ of the total hashrate.
  arXiv  Detail & Related papers  (2023-09-13T09:51:32Z)
• Cobalt: Optimizing Mining Rewards in Proof-of-Work Network Games [6.052883613180156]
  A key factor affecting mining rewards earned is the connectivity between miners in the peer-to-peer network. We formulate the problem of deciding whom to connect to for miners as a bandit problem. A key contribution of our work is the use of network coordinates based model for learning the network structure within the bandit algorithm.
  arXiv  Detail & Related papers  (2023-07-10T16:50:58Z)
• Refined Bitcoin Security-Latency Under Network Delay [35.16231062731263]
  We study how secure a block is after it becomes $k$-deep in the chain. We analyze the race between adversarial and honest chains in three different phases. We find the probability distribution of the growth of the adversarial chains under models similar to those in [Guo, Ren; AFT 2022] when a target block becomes $k$-deep in the chain.
  arXiv  Detail & Related papers  (2022-12-02T18:54:30Z)
• Quantum-resistance in blockchain networks [46.63333997460008]
  This paper describes the work carried out by the Inter-American Development Bank, the IDB Lab, LACChain, Quantum Computing (CQC), and Tecnologico de Monterrey to identify and eliminate quantum threats in blockchain networks. The advent of quantum computing threatens internet protocols and blockchain networks because they utilize non-quantum resistant cryptographic algorithms.
  arXiv  Detail & Related papers  (2021-06-11T23:39:25Z)
• Quantum Multi-Solution Bernoulli Search with Applications to Bitcoin's Post-Quantum Security [67.06003361150228]
  A proof of work (PoW) is an important cryptographic construct enabling a party to convince others that they invested some effort in solving a computational task. In this work, we examine the hardness of finding such chain of PoWs against quantum strategies. We prove that the chain of PoWs problem reduces to a problem we call multi-solution Bernoulli search, for which we establish its quantum query complexity.
  arXiv  Detail & Related papers  (2020-12-30T18:03:56Z)
• Toward Low-Cost and Stable Blockchain Networks [10.790006312359795]
  We propose a blockchain mining resources allocation algorithm to reduce the mining cost in PoW-based (proof-of-work-based) blockchain networks.
  arXiv  Detail & Related papers  (2020-02-19T06:42:33Z)

This list is automatically generated from the titles and abstracts of the papers in this site.

This site does not guarantee the quality of this site (including all information) and is not responsible for any consequences.