Towards Equity in Proof-of-Work Mining Rewards

Rami A. Khalil () and Naranker Dulay ()
Additional contact information
Rami A. Khalil: Imperial College London
Naranker Dulay: Imperial College London

A chapter in Mathematical Research for Blockchain Economy, 2023, pp 1-21 from Springer

Abstract: Abstract This work targets unfairness in Nakamoto, Bitcoin’s distinguished permissionless consensus protocol, towards miners with relatively small computational powers, and miners which participate during relatively unrewarding mining periods. We propose a set of computationally-grounded metrics for measuring miner expenditures, miner compensation, and coin value. Using our metrics, we quantitatively bring to light the sources of inequity in Nakamoto using Bitcoin as a real-world example. Furthermore, we propose a set of reward issuance constraints for mining incentive mechanisms to achieve equitable rewards, and argue for the efficacy of applying our constraints.

Keywords: Proof-of-Work; Cryptocurrency; Rewards (search for similar items in EconPapers)
Date: 2023
References: Add references at CitEc
Citations:

There are no downloads for this item, see the EconPapers FAQ for hints about obtaining it.

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:spr:lnopch:978-3-031-18679-0_1

Ordering information: This item can be ordered from
http://www.springer.com/9783031186790

DOI: 10.1007/978-3-031-18679-0_1

Access Statistics for this chapter

More chapters in Lecture Notes in Operations Research from Springer
Bibliographic data for series maintained by Sonal Shukla () and Springer Nature Abstracting and Indexing ().