FiberPool: Leveraging Multiple Blockchains for Decentralized Pooled Mining

TL;DR

FiberPool introduces a decentralized, multi-chain mining pool system that enhances security, scalability, and fairness in pooled mining by integrating main, storage, and child chains.

Contribution

It proposes a novel multi-chain architecture for distributed mining pools that addresses scalability, security, and fee issues present in existing solutions.

Findings

FiberPool ensures mining fairness and reward stability.

The system achieves budget balance and incentive compatibility.

Validation confirms improved security and scalability.

Abstract

The security of blockchain systems based on Proof of Work relies on mining. However, mining suffers from unstable revenue, prompting many miners to form cooperative mining pools. Most existing mining pools operate in a centralized manner, which undermines the decentralization principle of blockchain. Distributed mining pools offer a practical solution to this problem. Well-known examples include P2Pool and SmartPool. However, P2Pool encounters scalability and security issues in its early stages. Similarly, SmartPool is not budget-balanced and imposes fees due to its heavy use of the smart contract. In this research, we present a distributed mining pool named FiberPool to address these challenges. FiberPool integrates a smart contract on the main chain, a storage chain for sharing data necessary for share verification, and a child chain to reduce fees associated with using and withdrawing block rewards. We validate the mining fairness, budget balance, reward stability, and incentive compatibility of the payment scheme FiberPool Proportional adopted by FiberPool.