Selfish Mining Definition
In the context of blockchain, selfish mining refers to a mining strategy where miners seek to maximize their own personal gains by withholding, i.e., refusing to broadcast, blocks they have mined to the blockchain network.
Selfish Mining Key Points
- Selfish mining is a type of “block withholding” attack in the world of blockchain and cryptocurrencies.
- A selfish miner withholds the blocks they’ve discovered from the network in order to gain an advantage over other miners.
- It can disrupt the workings of the blockchain by delaying transaction confirmations and reducing the security and effectiveness of the network.
- They aim to monopolize the blockchain rewards by causing other miners to waste computational resources on already solved cryptographic puzzles.
What is Selfish Mining?
Selfish mining is a concept born from the decentralized nature of blockchain technology. In a digital ecosystem where miners are rewarded for their computational contribution to maintaining and validating the blockchain, the temptation exists to manipulate the system. Selfish miners manipulate the blockchain by secretly mining a new block and withholding it from other miners. Instead, they continue to mine the subsequent block, gaining a head start.
Who Would Use Selfish Mining?
While every participant in a blockchain network could theoretically engage in selfish mining, it is typically executed by miners or a group of miners. These miners or mining pools have enough computing power to potentially solve the proof-of-work puzzle of multiple blocks in quick succession. By doing so, they create a secret, longer version of the blockchain, which, when finally announced to the network, supersedes other miners’ versions of the blockchain.
When is Selfish Mining Used?
Selfish mining can be put into effect when a miner or a group of miners, often known as a mining pool, decides to increase their potential profits. It mostly happens on a larger scale where a mining pool’s hash power can compete against the rest of the mining community.
Why is Selfish Mining Considered Problematic?
Selfish mining is problematic because it violates the cooperative principle upon which blockchain networks rely. It manipulates the consensus protocol to give certain miners an unfair advantage, which, when done on a large enough scale, can also reduce the overall speed and efficiency of network-wide block confirmation. In extreme cases, selfish mining can even result in blockchain forks.
How Can the Risks of Selfish Mining be Mitigated?
There are several ways to deter selfish mining. One method involves modifying the blockchain’s protocol to reduce the advantage gained from selfish mining tactics. Other methods rely on developing a cooperative strategy among honest miners or punishing miners detected as engaging in selfish mining. Ultimately, the resolution requires community consensus and appropriate technical implementation.
