Evaluation of Decision Matrix, Hash Rate and Attacker Regions Effects in Bitcoin Network Securities

Abstract

Bitcoin is a famously decentralized cryptocurrency. Bitcoin is excellent because it is a digital currency that provides convenience and security in transactions. Transaction security in Bitcoin uses a consensus involving a distributed system, the security of this system generates a hash sequence with a Proof of Work (PoW) mechanism. However, in its implementation, various attacks appear that are used to generate profits from the existing system. Attackers can use various types of methods to get an unfair portion of the mining income. Such attacks are commonly referred to as Mining attacks. Among which the famous is the Selfish Mining attack. In this study, we simulate the effect of changing decision matrix, attacker region, attacker hash rate on selfish miner attacks by using the opensource NS3 platform. The experiment aims to see the effect of using 1%, 10%, and 20% decision matrices with different attacker regions and different attacker hash rates on Bitcoin selfish mining income. The result of this study shows that regional North America and Europe have the advantage in doing selfish mining attacks. This advantage is also supported by increasing the decision matrix from 1%, 10%, 20%. The highest attacker income, when using decision matrix 20% in North America using 16 nodes on 0.3 hash rate with income 129 BTC. For the hash rate, the best result for a selfish mining attack is between 27% to 30% hash rate.