arXiv:1807.02933 Date: submitted by
2018-07-09 Author(s): Chi-Ning Chou
, Yu-Jing Lin
, Ren Chen
, Hsiu-Yao Chang
, I-Ping Tu
, Shih-wei Liao
Bitcoin is the first secure decentralized electronic currency system. However, it is known to be inefficient due to its proof-of-work (PoW) consensus algorithm and has the potential hazard of double spending. In this paper, we aim to reduce the probability of double spending by decreasing the probability of consecutive winning. We first formalize a PoW-based decentralized secure network model in order to present a quantitative analysis. Next, to resolve the risk of double spending, we propose the personalized difficulty adjustment (PDA) mechanism which modifies the difficulty of each participant such that those who win more blocks in the past few rounds have a smaller probability to win in the next round. To analyze the performance of the PDA mechanism, we observe that the system can be modeled by a high-order Markov chain. Finally, we show that PDA effectively decreases the probability of consecutive winning and results in a more trustworthy PoW-based system.
 Satoshi Nakamoto, “Bitcoin: A peer-to-peer electronic cash system,” Consulted, vol. 1, no. 2012.
 Ephraim Feig, “A framework for blockchain-based applications,” arXiv preprint arXiv:1803.00892, 2018.
 Marta Piekarska Harry Halpin, “Introduction to security and privacy on the blockchain,” in Symposium on Security and Privacy Workshops, 2017 IEEE European Symposium on. IEEE, 2017.
 Ayelet Sapirshtein, Yonatan Sompolinsky, and Aviv Zohar, “Optimal selfish mining strategies in bitcoin,” in Financial Cryptography and Data Security. 2017, pp. 515–532, Springer.
 Ghassan Karame, Elli Androulaki, and Srdjan Capkun, “Two bitcoins at the price of one? double-spending attacks on fast payments in bitcoin.,” IACR Cryptology ePrint Archive, vol. 2012.
 Ghassan O Karame, Elli Androulaki, Marc Roeschlin, Arthur Gervais, and Srdjan Capkun, “Misbehavior in bitcoin: A study ˇ of double-spending and accountability,” ACM Transactions on Information and System Security (TISSEC), vol. 18, no. 1.
 Tobias Bamert, Christian Decker, Lennart Elsen, Roger Wattenhofer, and Samuel Welten, “Have a snack, pay with bitcoins,” in Peer-to-Peer Computing (P2P), 2013 IEEE Thirteenth International Conference on. IEEE, 2013, pp. 1–5.
 Chrysoula Stathakopoulou, “A faster bitcoin network,” 2015.
 Adrian E Raftery, “A model for high-order markov chains,” Journal of the Royal Statistical Society. Series B (Methodological), pp. 528–539, 1985.
 Andre Berchtold and Adrian E Raftery, “The mixture tran- ´sition distribution model for high-order markov chains and non-gaussian time series,” Statistical Science, pp. 328–356, 2002.
 Waiki Ching, Michael K Ng, and Shuqin Zhang, “On computation with higher-order markov chains,” in Current Trends in High Performance Computing and Its Applications, pp. 15–24. Springer, 2005.
 Michael K Ng and WK Ching, Markov Chains: Models, Algorithms and Applications, Springer, 2006.
 Wen Li and Michael K Ng, “On the limiting probability distribution of a transition probability tensor,” Linear and Multilinear Algebra, vol. 62, no. 3.
 Jen-Hung Tseng, Yen-Chih Liao, Bin Chong, and Shih-Wei Liao, “Governance on the drug supply chain via gcoin blockchain,” International Journal of Environmental Research and Public Health, 2018.
 Shih-Wei Liao, Boyu Lin, and En-Ran Zhou, “Gcoin:wiki, code and whitepaper,” https://g-coin.org
 Meni Rosenfeld, “Analysis of hashrate-based double spending,” arXiv preprint arXiv:1402.2009, 2014.
 Joshua A Kroll, Ian C Davey, and Edward W Felten, “The economics of bitcoin mining, or bitcoin in the presence of adversaries,” in Proceedings of WEIS, 2013, vol. 2013.
View the latest Tianjin Jingwei Huikai Optoelectronic Co. Ltd. A (300120) stock price, news, historical charts, analyst ratings and financial information from WSJ. The Bitcoin protocol and its underlying cryptocurrency have started to shape the way we view digital currency, and opened up a large list of new and interesting challenges. Amongst them, we focus on the question of how is the price of digital currencies affected, which is a natural question especially when considering the price rollercoaster we witnessed for bitcoin in 2017-2018. We work under ... PDF On Jul 1, 2018, Kentaroh Toyoda and others published Multi-Class Bitcoin-Enabled Service Identification Based on Transaction History Summarization Find, read and cite all the research you ... For Bitcoin’s price to reach $50,000, the number of Bitcoin users would need to increase from 0.5% of internet users to 1.5% of internet users. This is not an unimaginable event. For Bitcoin’s ... START BITCOIN MINING TODAY! It’s super simple - Your mining rigs are already set up and running. As soon as you’ve set up your account, you can start to mine your first coins using our Bitcoin cloud mining service! Start Mining Now; Learn More; Your hardware is already running. Don’t wrestle with rig assembly and hot, noisy miners at home. We have the fastest bitcoin mining hardware ...
Enjoy the videos and music you love, upload original content, and share it all with friends, family, and the world on YouTube. Rick Sanchez reminds us of the US government controversial bailout of Wall Street and points out that if the Chinese government steps in to reinvigorate Huaw... 欢迎来到冯提莫专属频道（粉丝频道），在这里可以试听冯提莫演唱的数千首歌曲。歌曲的版权属于作者及唱片公司，如若版权方不允许本频道使用 ... Billions of dollars flow into the U.S. from China every year. CNBC’s Uptin Saiidi explores some of China’s biggest assets in New York and explains how the tr... Apple products have never been cheap but the cost of many of its gadgets has increased dramatically over time. So what makes Apple's products so pricey? CNBC...