On Profitability of Nakamoto double spend

  title={On Profitability of Nakamoto double spend},
  author={C. Grunspan and R. P{\'e}rez-Marco},
  • C. Grunspan, R. Pérez-Marco
  • Published 2019
  • Computer Science, Mathematics
  • ArXiv
  • Nakamoto double spend strategy, described in Bitcoin foundational article, leads to total ruin with positive probability and does not make sense from the profitability point of view. The simplest strategy that can be profitable incorporates a stopping threshold when success is unlikely. We solve and compute the exact profitability for this strategy. We compute the minimal amount of the double spend that is profitable. For a given amount of the transaction, we determine the minimal number of… CONTINUE READING
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