The Miner's Dilemma

Explore the strategic dynamics of blockchain mining pools in this IEEE Symposium on Security & Privacy presentation. Delve into the concept of the Miner's Dilemma, examining how open distributed systems using proof-of-work mechanisms can be vulnerable to sabotage. Analyze the game theory behind pool infiltration attacks and their potential consequences on pool revenue. Investigate the equilibrium states in scenarios involving two pools or multiple identical pools, and understand how these conflicts mirror the tragedy of the commons. Learn about the real-world implications for Bitcoin and other digital currencies, and consider why major pools currently choose not to engage in attacks despite potential short-term gains.

Introduction
Miners form pools
Pool block withholding
Blockchain mining
Proof of work
Pools
Pool block withholding attack
Analysis
Two pools
Two pools minority
Summary
Conclusion
Questions