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Detection constraint for Harvesting Attack in Proof of Work mining pools

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posted on 09.07.2019, 10:37 by Veronika Kuchta, Yevhen Zolotavkin
PoW consensus largely depends on mining that mostly happens in the pools where Pay Per Share (PPS) and Pay Per Last N Shares (PPLNS) are the most common reward schemes that are offered to the affiliated miners by pool managers. In this report, we describe detection constraint for ``pool harvesting" attack that is harmful for honest miners. In order to profit from the attack on PPLNS pool malicious manager declares that a non-existent miner A joins that pool. She then collects the portion of reward that corresponds to the mining power of the proclaimed miner A. We discuss a number of statistical tests that may be used by honest miners in PPLNS pool to detect the attack.