BitcoinAlchemist on Nostr: Mutual block withholding is a nash equilibrium in the mining pool game. FPPS ...
Mutual block withholding is a nash equilibrium in the mining pool game.
FPPS incentivises block withholding by rewarding hostile miners regardless if the pool finds a block or not.
And turns out most pools proxy into other pools to reduce variance…
Although we can never say for sure whether someone is block withholding unless the pool admits it (or there is damming statistical evidence) we can say the economic incentives of the network are not currently compatible with Bitcoin in general.
FPPS incentivises block withholding by rewarding hostile miners regardless if the pool finds a block or not.
And turns out most pools proxy into other pools to reduce variance…
Although we can never say for sure whether someone is block withholding unless the pool admits it (or there is damming statistical evidence) we can say the economic incentives of the network are not currently compatible with Bitcoin in general.