An Intelligent Strategy to Gain Profit for Bitcoin Mining Pools
Bitcoin is a digital cryptocurrency operating on a peer to peer network, which is currently integrated across a number of businesses and exchange markets. New bitcoins is created by participants who contribute computational resources to maintain a public blockchain as miners. Miners collaborate in a mining pool to reduce their variance and earn steadier rewards in Bitcoin. Each mining pool desires to make a profit in the competition against others. To this end, an intelligent mining strategy to enable a mining pool to attain higher probability to get rewards disproportional to its computational power is proposed in this paper. We deploy some forwarding nodes according to the distribution of Bitcoin nodes. This strategy can reduce time delay for messages propagation and increase the probability for new block to be appended on the longest blockchain. It is also easy to deploy in existing network with low expenditure.