Author: Adam Back 2016-12-11 09:21:01
Published on: 2016-12-11T09:21:01+00:00
The empirical game theory observed on the network involves more than just honest versus dishonest players, according to Adam Back. In fact, there exist at least four or five types of strategies, each with its own nuances and implications. The different groups include: altruistic players who prioritize network health over incremental profits; honest players who follow protocol but may leave some dishonest profit untaken; semi-honest players who will violate protocol if their attack can be plausibly denied or argued as not hugely damaging to network security; rational players who will violate protocol for profit, such as engaging in selfish mining, using pay-to-self transactions to increase block size, or disadvantaging other miners, even if it results in centralization; and dishonest players who will probabilistically steal from users and engage in DDoS attacks against competing pools. Investment horizon plays a part in determining which strategy players will adopt. Altruistic behavior is long-term rational as it forgoes incremental short-term profit to improve user experience, while hyper-rational behavior buys votes in an “ends justify means” mentality. Most network players are not dishonest, which is fortunate because renting too much hash rate is risky and can increase rational or dishonest strategies. As long as over 50% of the network comprises semi-honest, honest, or altruistic players, the risk of a 51% attack remains low. It would be interesting to try to categorize and estimate the percentage of network engagement in each strategy.
Updated on: 2023-06-11T20:50:09.316925+00:00