Why is this on page 2? Probably the most valuable research paper on Bitcoin since the Satoshi document.
Still, I agree with iopq, PPLNS has a strong future esp. for new startup pools (in fact it might even be the perfect reward model)
would be good if everyone got an in-depth review on it.
Topic: Analysis of Bitcoin Pooled Mining Reward Systems - page 6. (Read 36536 times)
Looking good so far. Looking forward to sections 3-5 as those are the the most interesting parts to me.
just write the PPLNS section now, because it is intuitively the easiest to understand hopping-proof method that doesn't penalize or reward pool-hopping since each share has the same chance of making the window (as long as the window crosses round boundaries)
(Updated November 17, 2011)
I have completed my Analysis of Bitcoin Pooled Mining Reward Systems.
This document analyzes the foundations of mining pools and explores the various reward systems in existence, as a resource to anyone who would like to know more about the subject. It includes both discussion and mathematical results, some of which I have already haphazardly posted around the forum.
It is technical, though it is my intention that it will be approachable to everyone. Any feedback is welcome, and there used to be a bounty for helping improve it.
If you're looking for a more concise overview, also available is Summary of mining pool reward systems. There are also slides prepared for the San Jose conference.
Enjoy!
Table of contents:
1 Introduction
1.1 Bitcoin and mining
1.2 Variance of solo mining
1.3 Pooled mining
2 Simple reward systems
2.1 Proportional
2.2 Pay-per-share (PPS)
3 Score-based methods
3.1 Slush's method
3.2 Geometric method
3.3 Pay-per-last-N-shares (PPLNS)
3.4 Score-based methods myths
4 Attempts for risk-free pay-per-share
4.1 Maximum pay-per-share (MPPS)
4.2 Shared maximum pay-per-share (SMPPS)
4.3 Equalized SMPPS (ESMPPS)
5 Advanced methods
5.1 Double geometric method
5.2 General unit-based framework
5.3 PPLNS variants
6 Attack vectors
6.1 Pool-hopping
6.2 Block withholding
7 Nonstandard reward systems
7.1 Shares as a future payment contract
7.2 Variable block rewards
7.3 Hybrid reward methods
7.4 Heterogeneous pools
7.5 Variable difficulty shares
7.6 Proxy mining
7.7 Score cashout
7.8 Score markets
7.9 Streamlined PPS investments
8 Conclusion
A Properties of proportional pools with constant hashrate
B Pool-hopping in proportional pools
C Safety nets for PPS pools
D The hopping immunity theorem
E Properties of the geometric method
F Properties of *MPPS pools
G Hashrate fluctuation pool-hopping
I have completed my Analysis of Bitcoin Pooled Mining Reward Systems.
This document analyzes the foundations of mining pools and explores the various reward systems in existence, as a resource to anyone who would like to know more about the subject. It includes both discussion and mathematical results, some of which I have already haphazardly posted around the forum.
It is technical, though it is my intention that it will be approachable to everyone. Any feedback is welcome, and there used to be a bounty for helping improve it.
If you're looking for a more concise overview, also available is Summary of mining pool reward systems. There are also slides prepared for the San Jose conference.
Enjoy!
Table of contents:
1 Introduction
1.1 Bitcoin and mining
1.2 Variance of solo mining
1.3 Pooled mining
2 Simple reward systems
2.1 Proportional
2.2 Pay-per-share (PPS)
3 Score-based methods
3.1 Slush's method
3.2 Geometric method
3.3 Pay-per-last-N-shares (PPLNS)
3.4 Score-based methods myths
4 Attempts for risk-free pay-per-share
4.1 Maximum pay-per-share (MPPS)
4.2 Shared maximum pay-per-share (SMPPS)
4.3 Equalized SMPPS (ESMPPS)
5 Advanced methods
5.1 Double geometric method
5.2 General unit-based framework
5.3 PPLNS variants
6 Attack vectors
6.1 Pool-hopping
6.2 Block withholding
7 Nonstandard reward systems
7.1 Shares as a future payment contract
7.2 Variable block rewards
7.3 Hybrid reward methods
7.4 Heterogeneous pools
7.5 Variable difficulty shares
7.6 Proxy mining
7.7 Score cashout
7.8 Score markets
7.9 Streamlined PPS investments
8 Conclusion
A Properties of proportional pools with constant hashrate
B Pool-hopping in proportional pools
C Safety nets for PPS pools
D The hopping immunity theorem
E Properties of the geometric method
F Properties of *MPPS pools
G Hashrate fluctuation pool-hopping
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