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PoolParty: Efficient Blockchain-Agnostic Decentralized Mining Pool

Published: 20 July 2021 Publication History

Abstract

Blockchain mining is increasingly dominated by a few centralized mining pools [1]. Large pools can censor transactions on the blockchain and can coordinate their efforts to potentially carry out a 51% attack [2]. There have been 2 previous decentralized mining pools P2Pool and SmartPool, but both had unique limitations and are no longer actively mining. PoolParty is a novel decentralized blockchain-agnostic mining pool. By using smart-contracts to validate shares and punish miner misbehavior, as well as employing fines to disincentivize cheating, PoolParty is both secure and has low overhead operating costs. PoolParty can provide 0.05% overhead costs on Ethereum, and 0.003% overhead costs on Ethereum Classic for users with 20% pool hash-power. Finally, PoolParty can be implemented on less expensive smart contract hostable blockchains to improve scalability and overhead.

References

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Emin Gun Sirer and Ittay Eyal. June 2014. How to disincentivize large bitcoin mining pools.
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Daniel Reitzik. 2020. Dmg's subsidiary blockseer launches bitcoin mining pool focused on good governance, auditability and ofac compliance.https://stockhouse.com/news/press-releases/2020/10/29/dmg-s-subsidiary-blockseer-launches-bitcoin-mining-pool-focused-on-good.Accessed:2020-12-16.
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Cited By

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  • (2024)Smart Contract-Based Decentralized Mining Pools for Proof-of- Work Blockchains2024 IEEE International Conference on Blockchain (Blockchain)10.1109/Blockchain62396.2024.00037(227-234)Online publication date: 19-Aug-2024
  • (2023)Pooling Under the Sun: A Mining Pool Centralized Revisit and Solution2023 IEEE 22nd International Conference on Trust, Security and Privacy in Computing and Communications (TrustCom)10.1109/TrustCom60117.2023.00176(1294-1299)Online publication date: 1-Nov-2023
  • (2022)Auction and Classification of Smart ContractsMathematics10.3390/math1007103310:7(1033)Online publication date: 24-Mar-2022

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ICBCT '21: Proceedings of the 2021 3rd International Conference on Blockchain Technology
March 2021
216 pages
ISBN:9781450389624
DOI:10.1145/3460537
Permission to make digital or hard copies of all or part of this work for personal or classroom use is granted without fee provided that copies are not made or distributed for profit or commercial advantage and that copies bear this notice and the full citation on the first page. Copyrights for components of this work owned by others than the author(s) must be honored. Abstracting with credit is permitted. To copy otherwise, or republish, to post on servers or to redistribute to lists, requires prior specific permission and/or a fee. Request permissions from [email protected].

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New York, NY, United States

Publication History

Published: 20 July 2021

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  1. Blockchain
  2. Decentralized Mining Pool
  3. Smart Contract

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Cited By

View all
  • (2024)Smart Contract-Based Decentralized Mining Pools for Proof-of- Work Blockchains2024 IEEE International Conference on Blockchain (Blockchain)10.1109/Blockchain62396.2024.00037(227-234)Online publication date: 19-Aug-2024
  • (2023)Pooling Under the Sun: A Mining Pool Centralized Revisit and Solution2023 IEEE 22nd International Conference on Trust, Security and Privacy in Computing and Communications (TrustCom)10.1109/TrustCom60117.2023.00176(1294-1299)Online publication date: 1-Nov-2023
  • (2022)Auction and Classification of Smart ContractsMathematics10.3390/math1007103310:7(1033)Online publication date: 24-Mar-2022

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