Mining Pool Study

mining pool study

Study: Opportunistic mining could harm mining poolsNakamoto Ryo self-published a study on how Bitcoin mining pools are potentially vulnerable to pool-hopping by miners who hope to maximize returns.

The reason a miner might consider pool-hopping is because the longer a mining pool round takes, more shares will exist and thus each share represents a smaller and smaller slice of the reward pie.  A miner might then realize a better return by switching to a pool with a relatively new round which would thus have fewer shares already contributed.

As discussed in a forum post, today this is probably a moot point until there are at least two pools with similar hashpower.

The PDF of the study is available for download without charge.

[Update: Another study addressing pool cheating was performed by Raulo.  A PDF of that study is available for download without charge.]

Written on 24 Jan 2011.