Hashpower allocation in Pay-per-Share blockchain mining pools

Fuente: arXiv
Guardado en:
Detalles Bibliográficos
Autores principales: Goffard, Pierre-Olivier, Albrecher, Hansjoerg, Fouque, Jean-Pierre
Formato: Preprint
Publicado: 2025
Materias:
Acceso en línea:
Etiquetas: Agregar Etiqueta
Sin Etiquetas, Sea el primero en etiquetar este registro!
_version_ 1866914161766694912
author Goffard, Pierre-Olivier
Albrecher, Hansjoerg
Fouque, Jean-Pierre
author_facet Goffard, Pierre-Olivier
Albrecher, Hansjoerg
Fouque, Jean-Pierre
contents Mining blocks in a blockchain using the \textit{Proof-of-Work} consensus protocol involves significant risk, as network participants face continuous operational costs while earning infrequent capital gains upon successfully mining a block. A common risk mitigation strategy is to join a mining pool, which combines the computing resources of multiple miners to provide a more stable income. This article examines a Pay-per-Share (PPS) reward system, where the pool manager can adjust both the share difficulty and the management fee. Using a simplified wealth model for miners, we explore how miners should allocate their computing resources among different mining pools, considering the trade-off between risk transfer to the manager and management fees.
format Preprint
id arxiv_https___arxiv_org_abs_2511_13777
institution arXiv
publishDate 2025
record_format arxiv
spellingShingle Hashpower allocation in Pay-per-Share blockchain mining pools
Goffard, Pierre-Olivier
Albrecher, Hansjoerg
Fouque, Jean-Pierre
Cryptography and Security
Optimization and Control
Probability
Mining blocks in a blockchain using the \textit{Proof-of-Work} consensus protocol involves significant risk, as network participants face continuous operational costs while earning infrequent capital gains upon successfully mining a block. A common risk mitigation strategy is to join a mining pool, which combines the computing resources of multiple miners to provide a more stable income. This article examines a Pay-per-Share (PPS) reward system, where the pool manager can adjust both the share difficulty and the management fee. Using a simplified wealth model for miners, we explore how miners should allocate their computing resources among different mining pools, considering the trade-off between risk transfer to the manager and management fees.
title Hashpower allocation in Pay-per-Share blockchain mining pools
topic Cryptography and Security
Optimization and Control
Probability
url https://arxiv.org/abs/2511.13777