Charles Bertucci, Louis Bertucci, Jean-Michel Lasry, Pierre-Louis Lions
{"title":"A Mean Field Game Approach to Bitcoin Mining","authors":"Charles Bertucci, Louis Bertucci, Jean-Michel Lasry, Pierre-Louis Lions","doi":"10.1137/23m1617813","DOIUrl":null,"url":null,"abstract":"SIAM Journal on Financial Mathematics, Volume 15, Issue 3, Page 960-987, September 2024. <br/> Abstract.We present an analysis of the Proof-of-Work consensus algorithm, used on the Bitcoin blockchain, using a mean field game framework. Using a master equation, we provide an equilibrium characterization of the total computational power devoted to mining the blockchain (hashrate). This class of models allows us to adapt to many different situations. The essential structure of the game is preserved across all the enrichments. In deterministic settings, the hashrate ultimately reaches a steady state in which it increases at the rate of technological progress only. In stochastic settings, there exists a target for the hashrate for every possible random state. As a consequence, we show that in equilibrium the security of the underlying blockchain and the energy consumption either are constant or increase with the price of the underlying cryptocurrency.","PeriodicalId":1,"journal":{"name":"Accounts of Chemical Research","volume":null,"pages":null},"PeriodicalIF":16.4000,"publicationDate":"2024-09-18","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":"0","resultStr":null,"platform":"Semanticscholar","paperid":null,"PeriodicalName":"Accounts of Chemical Research","FirstCategoryId":"96","ListUrlMain":"https://doi.org/10.1137/23m1617813","RegionNum":1,"RegionCategory":"化学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":null,"EPubDate":"","PubModel":"","JCR":"Q1","JCRName":"CHEMISTRY, MULTIDISCIPLINARY","Score":null,"Total":0}
引用次数: 0
Abstract
SIAM Journal on Financial Mathematics, Volume 15, Issue 3, Page 960-987, September 2024. Abstract.We present an analysis of the Proof-of-Work consensus algorithm, used on the Bitcoin blockchain, using a mean field game framework. Using a master equation, we provide an equilibrium characterization of the total computational power devoted to mining the blockchain (hashrate). This class of models allows us to adapt to many different situations. The essential structure of the game is preserved across all the enrichments. In deterministic settings, the hashrate ultimately reaches a steady state in which it increases at the rate of technological progress only. In stochastic settings, there exists a target for the hashrate for every possible random state. As a consequence, we show that in equilibrium the security of the underlying blockchain and the energy consumption either are constant or increase with the price of the underlying cryptocurrency.
期刊介绍：
Accounts of Chemical Research presents short, concise and critical articles offering easy-to-read overviews of basic research and applications in all areas of chemistry and biochemistry. These short reviews focus on research from the author’s own laboratory and are designed to teach the reader about a research project. In addition, Accounts of Chemical Research publishes commentaries that give an informed opinion on a current research problem. Special Issues online are devoted to a single topic of unusual activity and significance.
Accounts of Chemical Research replaces the traditional article abstract with an article "Conspectus." These entries synopsize the research affording the reader a closer look at the content and significance of an article. Through this provision of a more detailed description of the article contents, the Conspectus enhances the article's discoverability by search engines and the exposure for the research.
京公网安备 11010802042870号
京ICP备2023020795号-1
分享
求助内容：
应助结果提醒方式：
扫码关注我们
