| Autor: |
Albrecher, H., Goffard, P.-O. |
| Jazyk: |
angličtina |
| Rok vydání: |
2022 |
| Zdroj: |
Operations Research, vol. 70, no. 1, pp. 179-200 |
| Popis: |
Mining blocks on a blockchain equipped with a proof of work consensus protocol is well-known to be resource-consuming. A miner bears the operational cost, mainly electricity consumption and IT gear, of mining, and is compensated by a capital gain when a block is discovered. This paper aims at quantifying the profitability of mining when the possible event of ruin is also considered. This is done by formulating a tractable stochastic model and using tools from applied probability and analysis, including the explicit solution of a certain type of advanced functional differential equation. The expected profit at a future time point is determined for the situation when the miner follows the protocol as well as when he/she withholds blocks. The obtained explicit expressions allow us to analyze the sensitivity with respect to the different model components and to identify conditions under which selfish mining is a strategic advantage. |
| Databáze: |
OpenAIRE |
| Externí odkaz: |
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