Author: Zawy 2018-09-17 14:09:23
Published on: 2018-09-17T14:09:23+00:00
The 51% problem is a significant issue in the world of cryptocurrency. This issue amplifies oscillations and motivates miners to cause the problem to go even further until some limit is reached. To make matters worse, miner profit motivation in choosing which coin to mine is a non-linear function. The Nakamoto consensus has solved this problem to the best of its ability. However, there may be a problem of issuing too many or too few coins depending on how fast h rises in the long term. There are solutions to the 51% problem such as selfish mining prevention and pollution, but these do not seem to be active on bitcoin-discussion. An alternative solution is to increase difficulty with a similar function instead of reward. From a miner's perspective, there is no difference. Additionally, an average of 144 past blocks to determine h are needed so that it does not vary too much. A selfish mine of 72 blocks would result in only a 12.5% loss compared to not using this pro-oscillation function.To solve the 51% problem, one can choose and trust a small group of coins (or 1) to be the best choice(s), and to trust that the reward plus fees we pay for mining (compared to coin value) is enough to prevent a 51% attack.
Updated on: 2023-06-13T14:40:32.321197+00:00