A Decade of Bitcoin: 10 years of boom, bust, millionaires ...

Merged Mining: Analysis of Effects and Implications

Date: 2017-08-24
Author(s): Alexei Zamyatin, Edgar Weippl

Link to Paper


Abstract
Merged mining refers to the concept of mining more than one cryptocurrency without necessitating additional proof-of-work effort. Merged mining was introduced in 2011 as a boostrapping mechanism for new cryptocurrencies and countermeasures against the fragmentation of mining power across competing systems. Although merged mining has already been adopted by a number of cryptocurrencies, to this date little is known about the effects and implications.
In this thesis, we shed light on this topic area by performing a comprehensive analysis of merged mining in practice. As part of this analysis, we present a block attribution scheme for mining pools to assist in the evaluation of mining centralization. Our findings disclose that mining pools in merge-mined cryptocurrencies have operated at the edge of, and even beyond, the security guarantees offered by the underlying Nakamoto consensus for extended periods. We discuss the implications and security considerations for these cryptocurrencies and the mining ecosystem as a whole, and link our findings to the intended effects of merged mining.

Bibliography
[1] Coinmarketcap. http://coinmarketcap.com/. Accessed 2017-09-28.
[2] P2pool. http://p2pool.org/. Accessed: 2017-05-10.
[3] M. Ali, J. Nelson, R. Shea, and M. J. Freedman. Blockstack: Design and implementation of a global naming system with blockchains. http://www.the-blockchain.com/docs/BlockstackDesignandImplementationofaGlobalNamingSystem.pdf, 2016. Accessed: 2016-03-29.
[4] G. Andersen. Comment in "faster blocks vs bigger blocks". https://bitcointalk.org/index.php?topic=673415.msg7658481#msg7658481, 2014. Accessed: 2017-05-10.
[5] G. Andersen. [bitcoin-dev] weak block thoughts... https://lists.linuxfoundation.org/pipermail/bitcoin-dev/2015-Septembe011157.html, 2015. Accessed: 2017-05-10.
[6] L. Anderson, R. Holz, A. Ponomarev, P. Rimba, and I. Weber. New kids on the block: an analysis of modern blockchains. http://arxiv.org/pdf/1606.06530.pdf, 2016. Accessed: 2016-07-04.
[7] E. Androulaki, S. Capkun, and G. O. Karame. Two bitcoins at the price of one? double-spending attacks on fast payments in bitcoin. In CCS, 2012.
[8] A. Back, M. Corallo, L. Dashjr, M. Friedenbach, G. Maxwell, A. Miller, A. Poelstra, J. Timón, and P. Wuille. Enabling blockchain innovations with pegged sidechains. http://newspaper23.com/ripped/2014/11/http-_____-___-_www___-blockstream___-com__-_sidechains.pdf, 2014. Accessed: 2017-09-28.
[9] A. Back et al. Hashcash - a denial of service counter-measure. http://www.hashcash.org/papers/hashcash.pdf, 2002. Accessed: 2017-09-28.
[10] S. Barber, X. Boyen, E. Shi, and E. Uzun. Bitter to better - how to make bitcoin a better currency. In Financial cryptography and data security, pages 399–414. Springer, 2012.
[11] J. Becker, D. Breuker, T. Heide, J. Holler, H. P. Rauer, and R. Böhme. Can we afford integrity by proof-of-work? scenarios inspired by the bitcoin currency. In WEIS. Springer, 2012.
[12] I. Bentov, R. Pass, and E. Shi. Snow white: Provably secure proofs of stake. https://eprint.iacr.org/2016/919.pdf, 2016. Accessed: 2017-09-28.
[13] Bitcoin Community. Bitcoin developer guide- transaction data. https://bitcoin.org/en/developer-guide#term-merkle-tree. Accessed: 2017-06-05.
[14] Bitcoin Community. Bitcoin protocol documentation - merkle trees. https://en.bitcoin.it/wiki/Protocol_documentation#Merkle_Trees. Accessed: 2017-06-05.
[15] Bitcoin community. Bitcoin protocol rules. https://en.bitcoin.it/wiki/Protocol_rules. Accessed: 2017-08-22.
[16] V. Buterin. Chain interoperability. Technical report, Tech. rep. 1. R3CEV, 2016.
[17] W. Dai. bmoney. http://www.weidai.com/bmoney.txt, 1998. Accessed: 2017-09-28.
[18] C. Decker and R. Wattenhofer. Information propagation in the bitcoin network. In Peer-to-Peer Computing (P2P), 2013 IEEE Thirteenth International Conference on, pages 1–10. IEEE, 2013.
[19] C. Decker and R. Wattenhofer. Bitcoin transaction malleability and mtgox. In Computer Security-ESORICS 2014, pages 313–326. Springer, 2014.
[20] Dogecoin community. Dogecoin reference implementation. https://github.com/dogecoin/
[27] A. Gervais, G. Karame, S. Capkun, and V. Capkun. Is bitcoin a decentralized currency? volume 12, pages 54–60, 2014.
[28] A. Gervais, G. O. Karame, K. Wüst, V. Glykantzis, H. Ritzdorf, and S. Capkun. On the security and performance of proof of work blockchains. In Proceedings of the 2016 ACM SIGSAC Conference on Computer and Communications Security, pages 3–16. ACM, 2016.
[29] I. Giechaskiel, C. Cremers, and K. B. Rasmussen. On bitcoin security in the presence of broken cryptographic primitives. In European Symposium on Research in Computer Security (ESORICS), September 2016.
[30] J. Göbel, H. P. Keeler, A. E. Krzesinski, and P. G. Taylor. Bitcoin blockchain dynamics: The selfish-mine strategy in the presence of propagation delay. Performance Evaluation, 104:23–41, 2016.
[31] E. Heilman, A. Kendler, A. Zohar, and S. Goldberg. Eclipse attacks on bitcoin’s peer-to-peer network. In 24th USENIX Security Symposium (USENIX Security 15), pages 129–144, 2015.
[32] Huntercoin developers. Huntercoin reference implementation. https://github.com/chronokings/huntercoin. Accessed: 2017-06-05.
[33] B. Jakobsson and A. Juels. Proofs of work and bread pudding protocols, Apr. 8 2008. US Patent 7,356,696; Accessed: 2017-06-05.
[34] M. Jakobsson and A. Juels. Proofs of work and bread pudding protocols. In Secure Information Networks, pages 258–272. Springer, 1999.
[35] A. Judmayer, N. Stifter, K. Krombholz, and E. Weippl. Blocks and chains: Introduction to bitcoin, cryptocurrencies, and their consensus mechanisms. Synthesis Lectures on Information Security, Privacy, & Trust, 9(1):1–123, 2017.
[36] A. Juels and J. G. Brainard. Client puzzles: A cryptographic countermeasure against connection depletion attacks. In NDSS, volume 99, pages 151–165, 1999.
[37] A. Juels and B. S. Kaliski Jr. Pors: Proofs of retrievability for large files. In Proceedings of the 14th ACM conference on Computer and communications security, pages 584–597. Acm, 2007.
[38] H. Kalodner, M. Carlsten, P. Ellenbogen, J. Bonneau, and A. Narayanan. An empirical study of namecoin and lessons for decentralized namespace design. In WEIS, 2015.
[39] G. O. Karame, E. Androulaki, and S. Capkun. Double-spending fast payments in bitcoin. In Proceedings of the 2012 ACM conference on Computer and communications security, pages 906–917. ACM, 2012.
[40] G. O. Karame, E. Androulaki, M. Roeschlin, A. Gervais, and S. Čapkun. Misbehavior in bitcoin: A study of double-spending and accountability. volume 18, page 2. ACM, 2015.
[41] A. Kiayias, A. Russell, B. David, and R. Oliynykov. Ouroboros: A provably secure proof-of-stake blockchain protocol. In Annual International Cryptology Conference, pages 357–388. Springer, 2017.
[42] S. King. Primecoin: Cryptocurrency with prime number proof-of-work. July 7th, 2013.
[43] T. Kluyver, B. Ragan-Kelley, F. Pérez, B. E. Granger, M. Bussonnier, J. Frederic, K. Kelley, J. B. Hamrick, J. Grout, S. Corlay, et al. Jupyter notebooks-a publishing format for reproducible computational workflows. In ELPUB, pages 87–90, 2016.
[44] Lerner, Sergio D. Rootstock plattform. http://www.the-blockchain.com/docs/Rootstock-WhitePaper-Overview.pdf. Accessed: 2017-06-05.
[45] Y. Lewenberg, Y. Bachrach, Y. Sompolinsky, A. Zohar, and J. S. Rosenschein. Bitcoin mining pools: A cooperative game theoretic analysis. In Proceedings of the 2015 International Conference on Autonomous Agents and Multiagent Systems, pages 919–927. International Foundation for Autonomous Agents and Multiagent Systems, 2015.
[46] Litecoin community. Litecoin reference implementation. https://github.com/litecoin-project/litecoin. Accessed: 2017-09-28.
[47] I. Maven. Apache maven project, 2011.
[48] G. Maxwell. Comment in "[bitcoin-dev] weak block thoughts...". https://lists.linuxfoundation.org/pipermail/bitcoin-dev/2015-Septembe011198.html, 2016. Accessed: 2017-05-10.
[49] S. Meiklejohn, M. Pomarole, G. Jordan, K. Levchenko, D. McCoy, G. M. Voelker, and S. Savage. A fistful of bitcoins: characterizing payments among men with no names. In Proceedings of the 2013 conference on Internet measurement conference, pages 127–140. ACM, 2013.
[50] S. Micali. Algorand: The efficient and democratic ledger. http://arxiv.org/abs/1607.01341, 2016. Accessed: 2017-02-09.
[51] A. Miller, A. Juels, E. Shi, B. Parno, and J. Katz. Permacoin: Repurposing bitcoin work for data preservation. In Security and Privacy (SP), 2014 IEEE Symposium on, pages 475–490. IEEE, 2014.
[52] A. Miller, A. Kosba, J. Katz, and E. Shi. Nonoutsourceable scratch-off puzzles to discourage bitcoin mining coalitions. In Proceedings of the 22nd ACM SIGSAC Conference on Computer and Communications Security, pages 680–691. ACM, 2015.
[53] B. Momjian. PostgreSQL: introduction and concepts, volume 192. Addison-Wesley New York, 2001.
[54] Myriad core developers. Myriadcoin reference implementation. https://github.com/myriadcoin/myriadcoin. Accessed: 2017-06-05.
[55] S. Nakamoto. Bitcoin: A peer-to-peer electronic cash system. https://bitcoin.org/bitcoin.pdf, Dec 2008. Accessed: 2017-09-28.
[56] S. Nakamoto. Merged mining specification. https://en.bitcoin.it/wiki/Merged_mining_specification, Apr 2011. Accessed: 2017-09-28.
[57] Namecoin Community. Merged mining. https://github.com/namecoin/wiki/blob/masteMerged-Mining.mediawiki#Goal_of_this_namecoin_change. Accessed: 2017-08-20.
[58] Namecoin community. Namecoin reference implementation. https://github.com/namecoin/namecoin. Accessed: 2017-09-28.
[59] A. Narayanan, J. Bonneau, E. Felten, A. Miller, and S. Goldfeder. Bitcoin and Cryptocurrency Technologies: A Comprehensive Introduction. Princeton University Press, 2016.
[60] K. Nayak, S. Kumar, A. Miller, and E. Shi. Stubborn mining: Generalizing selfish mining and combining with an eclipse attack. In 1st IEEE European Symposium on Security and Privacy, 2016. IEEE, 2016.
[61] K. J. O’Dwyer and D. Malone. Bitcoin mining and its energy footprint. 2014.
[62] R. Pass, L. Seeman, and A. Shelat. Analysis of the blockchain protocol in asynchronous networks. In Annual International Conference on the Theory and Applications of Cryptographic Techniques, pages 643–673. Springer, 2017.
[63] D. Pointcheval and J. Stern. Security arguments for digital signatures and blind signatures. Journal of cryptology, 13(3):361–396, 2000.
[64] Pseudonymous("TierNolan"). Decoupling transactions and pow. https://bitcointalk.org/index.php?topic=179598.0, 2013. Accessed: 2017-05-10.
[65] P. R. Rizun. Subchains: A technique to scale bitcoin and improve the user experience. Ledger, 1:38–52, 2016.
[66] K. Rosenbaum. Weak blocks - the good and the bad. http://popeller.io/index.php/2016/01/19/weak-blocks-the-good-and-the-bad/, 2016. Accessed: 2017-05-10.
[67] K. Rosenbaum and R. Russell. Iblt and weak block propagation performance. Scaling Bitcoin Hong Kong (6 December 2015), 2015.
[68] M. Rosenfeld. Analysis of bitcoin pooled mining reward systems. arXiv preprint arXiv:1112.4980, 2011.
[69] M. Rosenfeld. Analysis of hashrate-based double spending. http://arxiv.org/abs/1402.2009, 2014. Accessed: 2016-03-09.
[70] R. Russel. Weak block simulator for bitcoin. https://github.com/rustyrussell/weak-blocks, 2014. Accessed: 2017-05-10.
[71] A. Sapirshtein, Y. Sompolinsky, and A. Zohar. Optimal selfish mining strategies in bitcoin. In International Conference on Financial Cryptography and Data Security, pages 515–532. Springer, 2016.
[72] Sathoshi Nakamoto. Comment in "bitdns and generalizing bitcoin" bitcointalk thread. https://bitcointalk.org/index.php?topic=1790.msg28696#msg28696. Accessed: 2017-06-05.
[73] O. Schrijvers, J. Bonneau, D. Boneh, and T. Roughgarden. Incentive compatibility of bitcoin mining pool reward functions. In FC ’16: Proceedings of the the 20th International Conference on Financial Cryptography, February 2016.
[74] B. Sengupta, S. Bag, S. Ruj, and K. Sakurai. Retricoin: Bitcoin based on compact proofs of retrievability. In Proceedings of the 17th International Conference on Distributed Computing and Networking, page 14. ACM, 2016.
[75] N. Szabo. Bit gold. http://unenumerated.blogspot.co.at/2005/12/bit-gold.html, 2005. Accessed: 2017-09-28.
[76] M. B. Taylor. Bitcoin and the age of bespoke silicon. In Proceedings of the 2013 International Conference on Compilers, Architectures and Synthesis for Embedded Systems, page 16. IEEE Press, 2013.
[77] Unitus developers. Unitus reference implementation. https://github.com/unitusdev/unitus. Accessed: 2017-08-22.
[78] M. Vukolić. The quest for scalable blockchain fabric: Proof-of-work vs. bft replication. In International Workshop on Open Problems in Network Security, pages 112–125. Springer, 2015.
[79] P. Webb, D. Syer, J. Long, S. Nicoll, R. Winch, A. Wilkinson, M. Overdijk, C. Dupuis, and S. Deleuze. Spring boot reference guide. Technical report, 2013-2016.
[80] A. Zamyatin. Name-squatting in namecoin. (unpublished BSc thesis, Vienna University of Technology), 2015.
submitted by dj-gutz to myrXiv [link] [comments]

How to buy Bitcoins THE EASIEST WAY My First Bitcoin Gen. Mining Vid EXPLOSIVE BITCOIN MOVE COMING!!!! BITCOIN TO $14,000 WHEN WE BREAK THIS SPECIFIC PRICE!! Bitcoin Server Mining scam how to earn Free Bitcoin with Chorme mining

Bitcoin ATM maker Robocoin gave a demonstration of their machine to lawmakers and media in Washington, D.C, yesterday. CEO Jordan Kelley hosted the event, answering questions from the press and helping several member of Congress and their staff buy small amounts of bitcoin with the two-way machine. Congressman Jared Polis (D-CO) was among the first … ChainLink (LINK) Ben Jordan-April 21, 2020 0. CFTC Approves Bitnomial Crypto Exchange To Offer Bitcoin Settled Futures Contracts. Trading & Investing James W-April 21, 2020 0. Announcements . Ethereum incubator ConsenSys to Layoff 14% More Staff Members Amid Coronavirus Crisis. James W-April 21, 2020 0. ConsenSys, the New York-based Ethereum incubator may be laying off further staff amid the ... Related Link: Robocoin Brings Bitcoin ATMs To The United States Robocoin CEO Jordan Kelley was kind enough to sit down with Benzinga and share his thoughts on why Bitcoin is valuable and what its ... Mitte Februar hatte der Kurs noch bei über 9.500 Euro gelegen. Aktuell kostet ein Bitcoin etwa 6.770 Euro und ist damit rund 29 Prozent günstiger als vor der Corona-Krise.Kurzum: Auch die ... Robocoin CEO Jordan Kelley was kind enough to sit down with Benzinga and share his thoughts on why Bitcoin is valuable and what its future may hold.. Not Like Other Crypto-Currencies. BZ: What ...

[index] [33482] [36700] [10224] [38958] [8827] [14202] [37456] [35792] [626] [43045]

How to buy Bitcoins THE EASIEST WAY

The virtual goldrush to mine Bitcoin and other cryptocurrencies leads us to Central Washington state where a Bitcoin mine generates roughly $70,000 a day min... Noob's Guide To Bitcoin Mining - Super Easy & Simple - Duration: 11:37. UFD Tech 2,246,847 views. 11:37 . Life Inside a Secret Chinese Bitcoin Mine - Duration: 9:17. Motherboard 4,360,955 views. 9 ... This video is unavailable. Watch Queue Queue. Watch Queue Queue Excerpt from Let's Talk Bitcoin - Episode 54 (http://letstalkbitcoin.com/e54-towards-a-bitcoin-future) What is Bitcoin Mining? (In Plain English) - Duration: 16:01. 99Bitcoins 279,204 views. 16:01. TOP 6 MOST CRAZY POKER HANDS OF ALL TIME! - Duration: 29:27. FuryTV Recommended for you. 29:27. I ...

#