Proof-of-Prospect-Theory: A Novel Game-based Consensus Mechanism for Blockchain

TL;DR

This paper introduces Proof-of-Prospect-Theory (PoPT), a novel blockchain consensus mechanism based on game theory that considers node popularity and subjective sensibilities to improve fairness and decentralization.

Contribution

It proposes a new game-theoretic consensus mechanism, PoPT, incorporating subjective node attributes and prospect value to enhance blockchain performance.

Findings

PoPT improves fairness and decentralization.

Numerical simulations validate PoPT's effectiveness.

PoPT enhances motivation for node participation.

Abstract

Blockchain technology is a breakthrough in changing the ways of business and organization operations, in which the consensus problem is challenging with practical constraints, such as computational power and consensus standard. In this paper, a novel consensus mechanism named Proof-of-Prospect-Theory (PoPT) is designed from the view of game theory, where the game prospect value is considered as an important election criterion of the block-recorder. PoPT portrays the popularity of a node in the network as an attribute, which is constituted by the subjective sensibilities of nodes. Furthermore, the performances of the PoPT and the willingness of ordinary nodes to participate in the consensus are analyzed, exploring fairness, decentralization, credibility, and the motivating ability of the consensus mechanism. Finally, numerical simulations with optimization of the PoPT consensus mechanism are demonstrated in the scenario of a smart grid system to illustrate the effectiveness of the PoPT.