Kano, thoughts on this on block withholding? http://organofcorti.blogspot.com/2016/02/detecting-unintentional-block.html
Heh he picked the same number I said on the slush thread - 10 blocks.
Yes the pool already has information about that ...
That is some interesting stuff. Why would someone do that here? Would it be to benefit from faster block change notifications? Harm the reputation of the pool?
There are a number of reasons to withhold blocks.
1) If you rent out your gear, you will always be paid even if you withhold.The rental company will also be paid no matter what.
(fuck-you-hash doesn't give a shit about checking for this even though they get 6% of the rental cost - they know they get paid no matter what - they don't care)
2) If you rent out your gear, withholding will reduce the next diff change, so make your gear worth a little bit more each time you manage to withhold a block - again same story for the rental company ... and fuck-you-hash
3) Trying to kill off a competitor. Depending upon the pool payout method, the loss may be small.
PPS - withholding loss (per block) for the miner is zero (pool operator loses all the loss - pool miners lose nothing)
Eligius - withholding loss (per block) for the miner is very small (pool operator loses nothing - pool miners lose all the loss)
PPLNS - withholding loss (per block) for the miner is dependent upon the miner size vs the pool size (pool operator loses pool fees - pool miners lose the difference between the withholder loss and the block reward)