Showing papers by "Vincenzo Rana published in 2019"
25 Jan 2019
TL;DR: This paper developed a multi-agent based simulator, that mimics the relevant mechanics of the mining ecosystem, as well as some features of the miners as economic actors, and characterized different significant sell-it-or-mine-with-it strategies, and observed the simulated outcome.
Abstract: In proof of work blockchain systems, there are strong incentives towards designing hardware that can mine faster and/or with less power consumption. There are two ways of taking advantage of such devices: one can use them to mine more coins with less power, or he can sell it to other miners. The two strategies are not independent, of course: if everybody has the boosting technology, the difficulty will rise, and it won't be an advantage anymore. On the other hand, if the boost is above a certain threshold, being used only by a small subset of miners might mean centralizing the system, with potentially dangerous consequences on the platform credibility. In this paper we analyse the impact of different strategies to exploit a significant increase in mining hardware efficiency. To do so, we developed a multi-agent based simulator, that mimics the relevant mechanics of the mining ecosystem, as well as some features of the miners as economic actors. We then characterized different significant sell-it-or-mine-with-it strategies, and observed the simulated outcome.
5 citations