CSE1006 Study Guide - Bitcoin, Mining Pool

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Some interesting strategic considerations every miner makes: which transactions to include, which block to mine on, choosing between blocks at the same height, when to announce new blocks. For each decision a default strategy, followed by most miners (around 90%) since they run the default bitcoin client. To express the proportion of mining capacity with a 0 < < 1, it turns s out that for some , it is possible to make more money changing the strategy. A simplest attack is a forking attack, idea is to perform a double spend. Suppose that some money has been transferred to bob and that the transaction is in the longest chain. A miner could try to insert another transaction towards himself connecting to a previous block that the one containing the other transaction. Perhaps he follows the common heuristic and even waits for six confirmations to be sure.

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