Bitcoin: a new proof-of-work system with reduced variance

【Author】 Bazzanella, Danilo; Gangemi, Andrea

【Source】FINANCIAL INNOVATION

【影响因子】6.793

【Abstract】Since its inception, bitcoin has used the popular consensus protocol proof-of-work (PoW). PoW has a well-known flaw: it distributes all rewards to a single miner (or pool) who inserts a new block. Consequently, the variance of rewards and the mining enterprise risk are extremely high. In 2016, Shi proposed addressing this problem with a theoretical algorithm. We introduce an easily-implemented PoW variant that improves Shi's idea. The network must not find a single nonce but a few to insert a block. This simple change allows for a fairer distribution of rewards and also has the effect of regularizing the insertion time of blocks. This method would facilitate the emergence of small pools or autonomous miners.

【Keywords】Proof-of-work; Bitcoin; Consensus protocol

【发表时间】2023 3-May

【收录时间】2023-06-04

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