Ethereum: Does selfish mining actually give an advantage in the absence of transaction fees, difficulty changes, and economic effects?

Skill of selfish mining in Ethereum

Selfish mining applies to a single subject or group of organizations that tries to manipulate the Ethereum network by dominating its mining process, often regardless of the greater benefit. The idea that selfish miners can increase the rate of block hunting compared to the honest miners of the miners has been largely analyzed in connection with the ethhereum.

Basics of Ethereum mining

Proof of Ethereum’s work is based on a hash collision, which expensive calculates the valid solution of the puzzle block. The miners compete for the first time to solve the puzzle and the winner gets the block head to the blockchain. The block of the block is then distributed to miners who have solved the puzzle in front of it.

Selfish mining: Challenge for the centralized nature of Ethereum

In traditional mining pools, members work in a decentralized way to solve puzzles. However, in selfish mining scenarios, a network or group of subjects can control the network by checking a significant portion of the computing force. This concentration of resources gives them an unfair advantage over other miners.

Main Results Cornell Paper

In his document: “Selfish mining provides Ethan Wrenn and Benjamin Zito the effects of selfish mining on the proportion of Ethereum blocks. Here are some key points from their study:

1.

  • Computer power: Selfish miners can accumulate and use a huge amount of computing power, which gives them basic benefits when solving the puzzle.

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Economic effects

The economic consequences of selfish mining are also significant:

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Conclusion

Ethereum: Does selfish mining actually give an advantage in the absence of transaction fees, difficulty changes, and economic effects?

Although the idea of ​​selfish mining that gives an advantage may seem theoretically attractive, the practical consequences of the decentralized Ethereum ecosystem are far away. The concentration of computing power and resources can lead to significant economic effects in selfish mining scenarios, for example:

  • An uneven distribution of rewards between sincere miners

  • Reducing motivation for honest miners to participate in the network

  • An increased risk of reducing centralization and decentralization

Cornell Paper offers valuable views of the Ethereum selfish mining complex dynamics. When the network is constantly evolving, these problems should be solved through design modifications to promote justice and decentralization.

Sources:

Wrenn, E., and Zito, B. (2020). Is selfish mining benefits? Cornell University.

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