An Incentive-Compatible Semi-Parallel Proof-of-Work Protocol

Fuente: arXiv
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Main Authors: Doger, Mustafa, Ulukus, Sennur
Format: Preprint
Published: 2025
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author Doger, Mustafa
Ulukus, Sennur
author_facet Doger, Mustafa
Ulukus, Sennur
contents Parallel Proof-of-Work (PoW) protocols have been suggested in the literature to improve the safety guarantees, transaction throughput and confirmation latencies of Nakamoto consensus. In this work, we first consider the existing parallel PoW protocols and develop hard-coded incentive attack structures. Our theoretical results and simulations show that the existing parallel PoW protocols are more vulnerable to incentive attacks than the Nakamoto consensus, e.g., attacks have smaller profitability threshold and they result in higher relative rewards. Next, we introduce a voting-based semi-parallel PoW protocol that outperforms both Nakamoto consensus and the existing parallel PoW protocols from most practical perspectives such as communication overheads, throughput, transaction conflicts, incentive compatibility of the protocol as well as a fair distribution of transaction fees among the voters and the leaders. We use state-of-the-art analysis to evaluate the consistency of the protocol and consider Markov decision process (MDP) models to substantiate our claims about the resilience of our protocol against incentive attacks.
format Preprint
id arxiv_https___arxiv_org_abs_2508_06489
institution arXiv
publishDate 2025
record_format arxiv
spellingShingle An Incentive-Compatible Semi-Parallel Proof-of-Work Protocol
Doger, Mustafa
Ulukus, Sennur
Cryptography and Security
Distributed, Parallel, and Cluster Computing
Discrete Mathematics
Information Theory
Probability
Parallel Proof-of-Work (PoW) protocols have been suggested in the literature to improve the safety guarantees, transaction throughput and confirmation latencies of Nakamoto consensus. In this work, we first consider the existing parallel PoW protocols and develop hard-coded incentive attack structures. Our theoretical results and simulations show that the existing parallel PoW protocols are more vulnerable to incentive attacks than the Nakamoto consensus, e.g., attacks have smaller profitability threshold and they result in higher relative rewards. Next, we introduce a voting-based semi-parallel PoW protocol that outperforms both Nakamoto consensus and the existing parallel PoW protocols from most practical perspectives such as communication overheads, throughput, transaction conflicts, incentive compatibility of the protocol as well as a fair distribution of transaction fees among the voters and the leaders. We use state-of-the-art analysis to evaluate the consistency of the protocol and consider Markov decision process (MDP) models to substantiate our claims about the resilience of our protocol against incentive attacks.
title An Incentive-Compatible Semi-Parallel Proof-of-Work Protocol
topic Cryptography and Security
Distributed, Parallel, and Cluster Computing
Discrete Mathematics
Information Theory
Probability
url https://arxiv.org/abs/2508.06489