Practice Sheet: Selfish Mining
Problem 1
What is selfish mining and how does it work in Bitcoin?
Problem 2
Suppose there are two miners - A and B, who have a hashrate of 40% and 60% respectively. A and B are using Selfish Mining strategy. If A manages to mine a block, what is the probability that A will successfully mine the next block as well before the rest of the network?
Problem 3
In the above scenario, what is the expected revenue for A and B after five rounds of mining blocks?
Problem 4
Explain the 'stubborn mining' strategy and how is it different from Selfish Mining?
Problem 5
What are the potential flaws and limitations of Selfish Mining strategy in terms of safety, profitability, and fairness?
Problem 6
Suppose the Bitcoin network has a total hashrate of 100 EH/s, and a miner decides to use Selfish Mining strategy with a hashrate of 20 EH/s. What is the minimum pool size required for the miner to execute the Selfish Mining strategy effectively?
Problem 7
What are the possible countermeasures that can be used to prevent Selfish Mining attacks in Bitcoin network?
Problem 8
What is the impact of Selfish Mining on the blockchain security, network stability, and consensus mechanism?
Problem 9
What are the main limitations and assumptions of the Selfish Mining model, and how can it be improved to reflect the real-world scenarios?
Problem 10
Evaluate the potential ethical and societal implications of Selfish Mining strategy in decentralized cryptocurrency systems, and discuss the role of regulations and governance in mitigating such risks.