Loading [a11y]/accessibility-menu.js
Approaching an Optimal Bitcoin Mining Overlay | IEEE Journals & Magazine | IEEE Xplore

Approaching an Optimal Bitcoin Mining Overlay


Abstract:

Bitcoin builds upon an unstructured peer-to-peer overlay network to disseminate transactions and blocks. Broadcast in such a network is slow and brings inconsistencies, i...Show More

Abstract:

Bitcoin builds upon an unstructured peer-to-peer overlay network to disseminate transactions and blocks. Broadcast in such a network is slow and brings inconsistencies, i. e., peers have different views of the system state. Due to the delayed block propagation and the competition of mining, forking, i. e., the blockchain temporarily diverges into two or more branches, occurs, which wastes computation power and causes security issues. This paper proposes an autonomous and distributed topology optimization mechanism to reduce block propagation delay and hence reduce the occurrence of blockchain forks. In the proposed mechanism, a node can autonomously update his neighbor set using the information provided by his current neighbors, since each neighbor will recommend a peer from his own neighbor set, i. e., a neighbor’s neighbor, to this node. Each recommendation is based on a peer’s propagation ability, which is characterized as a criteria function obtained through a combination of empirical analysis and machine learning. We further propose some metrics to evaluate a Bitcoin network topology. Experiment results reflect the effectiveness of the proposed mechanism and indicate the correlation between block propagation time and fork rate. Thus, we analyze the relation between block propagation time and fork rate by applying an epidemic model to capture the block propagation process. We prove that a Bitcoin network topology with a relatively small network delay variance among all nodes produces a lower fork rate than another topology if its average block propagation time to 84% of the entire network is shorter.
Published in: IEEE/ACM Transactions on Networking ( Volume: 31, Issue: 5, October 2023)
Page(s): 2013 - 2026
Date of Publication: 30 January 2023

ISSN Information:

Funding Agency:


I. Introduction

The Bitcoin mining network is designed as a peer-to-peer (P2P) overlay [1], [2], where nodes, named as miners, are randomly connected. Blocks are transmitted over this network using a multi-hop broadcast scheme. That is, a block creator broadcasts his newly mined block to all of his neighbors first. Peers receiving such a new (unseen) block will relay it in the same manner until all nodes receive this block. Given a topology in Fig. 1(a), Fig. 1(b) shows the process how node broadcasts his block (which is found at time 0) in the network. Suppose that the transmission delay is one time step for each node, then ’s block is known by all nodes at time 3. Obviously, this distributed model brings inconsistencies to the Bitcoin system. Since each propagation hop induces a delay, a block reaches different peers at different times. Thus, peers may have different local views of the blockchain during the block propagation process. As a result, some miners are mining on top of the newest block while others are still extending a stale blockchain. It is unfair since uninformed miners may waste their mining power as well as electricity.

Block propagation in the Bitcoin network.

Contact IEEE to Subscribe

References

References is not available for this document.