• Corpus ID: 2794725

The Economics of Bitcoin Mining, or Bitcoin in the Presence of Adversaries

@inproceedings{Kroll2013TheEO,
  title={The Economics of Bitcoin Mining, or Bitcoin in the Presence of Adversaries},
  author={Joshua A. Kroll and Ian C. Davey and Edward W. Felten},
  year={2013}
}
The Bitcoin digital currency depends for its correctness and stability on a combination of cryptography, distributed algorithms, and incentivedriven behavior. We examine Bitcoin as a consensus game and determine that it relies on separate consensus about the rules and about game state. An important aspect of Bitcoin’s design is the mining mechanism, in which participants expend resources on solving computational puzzles in order to collect rewards. This mechanism purportedly protects Bitcoin… 

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