On Reward Sharing in Blockchain Mining Pools

Publikation: Working paperForskning

Standard

On Reward Sharing in Blockchain Mining Pools. / Can, Burak; Hougaard, Jens Leth; Pourpounehnajafabadi, Mohsen.

Department of Food and Resource Economics, University of Copenhagen, 2020.

Publikation: Working paperForskning

Harvard

Can, B, Hougaard, JL & Pourpounehnajafabadi, M 2020 'On Reward Sharing in Blockchain Mining Pools' Department of Food and Resource Economics, University of Copenhagen.

APA

Can, B., Hougaard, J. L., & Pourpounehnajafabadi, M. (2020). On Reward Sharing in Blockchain Mining Pools. Department of Food and Resource Economics, University of Copenhagen. IFRO Working Paper Nr. 2020/09

Vancouver

Can B, Hougaard JL, Pourpounehnajafabadi M. On Reward Sharing in Blockchain Mining Pools. Department of Food and Resource Economics, University of Copenhagen. 2020.

Author

Can, Burak ; Hougaard, Jens Leth ; Pourpounehnajafabadi, Mohsen. / On Reward Sharing in Blockchain Mining Pools. Department of Food and Resource Economics, University of Copenhagen, 2020. (IFRO Working Paper ; Nr. 2020/09).

Bibtex

@techreport{631b8b419ab647ca8781c936555df646,
title = "On Reward Sharing in Blockchain Mining Pools",
abstract = "This paper proposes a conceptual framework for the analysis of reward sharing schemes in mining pools, such as those associated with Bitcoin. The framework is centered around the reported shares in a pool instead of agents and results in two new fairness criteria, absolute and relative redistribution. These criteria impose that the addition of a share to the pool affects all previous shares in the same way, either in absolute amount or in relative ratio. We characterize two large classes of economically viable reward sharing schemes corresponding to each of these fairness criteria in turn. We further show that the intersection of these classes brings about a generalization of the the well-known proportional scheme, which also leads to a new characterization of the proportional scheme as a corollary.",
author = "Burak Can and Hougaard, {Jens Leth} and Mohsen Pourpounehnajafabadi",
year = "2020",
language = "English",
series = "IFRO Working Paper ",
number = "2020/09",
publisher = "Department of Food and Resource Economics, University of Copenhagen",
type = "WorkingPaper",
institution = "Department of Food and Resource Economics, University of Copenhagen",

}

RIS

TY - UNPB

T1 - On Reward Sharing in Blockchain Mining Pools

AU - Can, Burak

AU - Hougaard, Jens Leth

AU - Pourpounehnajafabadi, Mohsen

PY - 2020

Y1 - 2020

N2 - This paper proposes a conceptual framework for the analysis of reward sharing schemes in mining pools, such as those associated with Bitcoin. The framework is centered around the reported shares in a pool instead of agents and results in two new fairness criteria, absolute and relative redistribution. These criteria impose that the addition of a share to the pool affects all previous shares in the same way, either in absolute amount or in relative ratio. We characterize two large classes of economically viable reward sharing schemes corresponding to each of these fairness criteria in turn. We further show that the intersection of these classes brings about a generalization of the the well-known proportional scheme, which also leads to a new characterization of the proportional scheme as a corollary.

AB - This paper proposes a conceptual framework for the analysis of reward sharing schemes in mining pools, such as those associated with Bitcoin. The framework is centered around the reported shares in a pool instead of agents and results in two new fairness criteria, absolute and relative redistribution. These criteria impose that the addition of a share to the pool affects all previous shares in the same way, either in absolute amount or in relative ratio. We characterize two large classes of economically viable reward sharing schemes corresponding to each of these fairness criteria in turn. We further show that the intersection of these classes brings about a generalization of the the well-known proportional scheme, which also leads to a new characterization of the proportional scheme as a corollary.

M3 - Working paper

T3 - IFRO Working Paper

BT - On Reward Sharing in Blockchain Mining Pools

PB - Department of Food and Resource Economics, University of Copenhagen

ER -

ID: 246830912