IDEAS home Printed from https://ideas.repec.org/h/spr/lnopch/978-3-031-18679-0_1.html
   My bibliography  Save this book chapter

Towards Equity in Proof-of-Work Mining Rewards

In: Mathematical Research for Blockchain Economy

Author

Listed:
  • Rami A. Khalil

    (Imperial College London)

  • Naranker Dulay

    (Imperial College London)

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.

Suggested Citation

  • Rami A. Khalil & Naranker Dulay, 2023. "Towards Equity in Proof-of-Work Mining Rewards," Lecture Notes in Operations Research, in: Panos Pardalos & Ilias Kotsireas & Yike Guo & William Knottenbelt (ed.), Mathematical Research for Blockchain Economy, pages 1-21, Springer.
    • Handle: RePEc:spr:lnopch:978-3-031-18679-0_1
    DOI: 10.1007/978-3-031-18679-0_1
    as

    Download full text from publisher

    To our knowledge, this item is not available for download. To find whether it is available, there are three options:
    1. Check below whether another version of this item is available online.
    2. Check on the provider's web page whether it is in fact available.
    3. Perform a search for a similarly titled item that would be available.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:spr:lnopch:978-3-031-18679-0_1. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Sonal Shukla or Springer Nature Abstracting and Indexing (email available below). General contact details of provider: http://www.springer.com .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.