ITU

Mine with it or sell it: the superhashing power dilemma

Research output: Conference Article in Proceeding or Book/Report chapterArticle in proceedingsResearchpeer-review

Standard

Mine with it or sell it: the superhashing power dilemma. / Bruschi, Francesco; Rana, Vincenzo; Gentile, Lorenzo; Sciuto, Donatella.

ACM SIGMETRICS Performance Evaluation Review. Vol. 46 Association for Computing Machinery, 2018. p. 127-130.

Research output: Conference Article in Proceeding or Book/Report chapterArticle in proceedingsResearchpeer-review

Harvard

Bruschi, F, Rana, V, Gentile, L & Sciuto, D 2018, Mine with it or sell it: the superhashing power dilemma. in ACM SIGMETRICS Performance Evaluation Review. vol. 46, Association for Computing Machinery, pp. 127-130. https://doi.org/10.1145/3308897.3308954

APA

Bruschi, F., Rana, V., Gentile, L., & Sciuto, D. (2018). Mine with it or sell it: the superhashing power dilemma. In ACM SIGMETRICS Performance Evaluation Review (Vol. 46, pp. 127-130). Association for Computing Machinery. https://doi.org/10.1145/3308897.3308954

Vancouver

Bruschi F, Rana V, Gentile L, Sciuto D. Mine with it or sell it: the superhashing power dilemma. In ACM SIGMETRICS Performance Evaluation Review. Vol. 46. Association for Computing Machinery. 2018. p. 127-130 https://doi.org/10.1145/3308897.3308954

Author

Bruschi, Francesco ; Rana, Vincenzo ; Gentile, Lorenzo ; Sciuto, Donatella. / Mine with it or sell it: the superhashing power dilemma. ACM SIGMETRICS Performance Evaluation Review. Vol. 46 Association for Computing Machinery, 2018. pp. 127-130

Bibtex

@inproceedings{2a27850760ae41328e8898feb9572017,
title = "Mine with it or sell it: the superhashing power dilemma",
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.",
keywords = "mining, bitcoin, ethereum, blockchain, hash, hardware, simulation",
author = "Francesco Bruschi and Vincenzo Rana and Lorenzo Gentile and Donatella Sciuto",
year = "2018",
month = dec
day = "3",
doi = "10.1145/3308897.3308954",
language = "English",
volume = "46",
pages = "127--130",
booktitle = "ACM SIGMETRICS Performance Evaluation Review",
publisher = "Association for Computing Machinery",
address = "United States",

}

RIS

TY - GEN

T1 - Mine with it or sell it: the superhashing power dilemma

AU - Bruschi, Francesco

AU - Rana, Vincenzo

AU - Gentile, Lorenzo

AU - Sciuto, Donatella

PY - 2018/12/3

Y1 - 2018/12/3

N2 - 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.

AB - 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.

KW - mining

KW - bitcoin

KW - ethereum

KW - blockchain

KW - hash

KW - hardware

KW - simulation

U2 - 10.1145/3308897.3308954

DO - 10.1145/3308897.3308954

M3 - Article in proceedings

VL - 46

SP - 127

EP - 130

BT - ACM SIGMETRICS Performance Evaluation Review

PB - Association for Computing Machinery

ER -

ID: 83839634