Mitigation of block withholding attack based on zero-determinant strategy

Area of Science:

• Computer Science
• Game Theory
• Cryptocurrency

Background:

• Bitcoin mining pools face a dilemma due to block withholding attacks.
• Rational pools may engage in infiltration attacks, creating a consensus algorithm dilemma.
• This compromises overall system revenue and stability.

Purpose of the Study:

• To propose zero-determinant strategies for optimizing mining pool behavior.
• To increase total system revenues within the Proof-of-Work (PoW) consensus mechanism.
• To resolve the mining dilemma and mitigate attacks.

Main Methods:

• Theoretical study of zero-determinant strategies, including set and extortionate approaches.
• Devised an adaptive zero-determinant strategy adjusting cooperation probability based on prior revenue.
• Simulated 30 game strategy sets to analyze mining pool revenue variations.

Main Results:

• Zero-determinant strategies improve cooperation convergence rates.
• These strategies effectively mitigate block withholding attacks.
• The adaptive strategy offers enhanced stability and revenue compared to extortionate strategies.

Conclusions:

• Zero-determinant strategies offer a viable solution to the Bitcoin mining dilemma.
• Adaptive zero-determinant strategies provide superior stability and revenue maximization.
• Optimizing mining pool behavior enhances overall system performance and security.