Selfish Mining

PoW is consensus mechanism. First person solves a problem receives the reward (incentive).

Mining Pool

Groups of miners, increase chance of finding blocks.

Define $\alpha$ to be the percentage of mining power owned by a selfish miner. Define $\gamma$ to be the probability the chain is chosen (propagation probability). Revenue formula $R_{pool}=\frac{r_{pool}}{r_{other} + r_{pool}}$

Plot and find the intersect between honest strategy and selfish strategy curve, more revenue can be gained when computing power is more than 33%.