Author: Alex Mizrahi 2014-10-06 06:42:40
Published on: 2014-10-06T06:42:40+00:00
An idea from TierNolan suggests that a miner who owns 1/N of the total hashrate must choose between two strategies if the last known block claimed a large tx fee of L. The first strategy is mining on top of that block and winning the usual reward R with probability 1/N. The second strategy is mining on top of the previous block, trying to make two blocks in a row, which might get a reward of L with probability 1/N^2. For the first strategy, the expected payoff is R/N, while for the second strategy, the expected payoff is L/N^2. The second strategy is viable if R/N < L/N^2.
Updated on: 2023-06-09T02:59:15.410642+00:00