The Blockchain Difficulty Information Paradox

D(N+1, Blockchain(0..N)) → value

The Emergency Difficulty Adjustment (EDA)

  1. Some “benevolent” (non short-term profit maximizing) miners may be mining the Bitcoin Cash chain for philosophical reasons
  2. “benevolent” miners may be accepting reduced profits now in the expectation of future profits.
  3. Once an EDA is “locked in”, a miner may mine the higher difficulty blocks in order to get the post-EDA reward. But the optimal strategy is to wait until another miner does this “benevolent” mining for you, jumping in as soon as the EDA occurs. (However, a possible strategy here is to withhold your high difficulty blocks until you have mined enough post EDA blocks to pay for them. But this strategy interferes with the blockchain’s utility…)

A Solution

Current Proposals

  1. miners create blocks with a parent (P), a creation time (Tb), and a chosen difficulty D. To be valid the block must meet 2 criteria:

Hash(block) ≥ D

block.Tb — Parent.Tb <= I.


Love podcasts or audiobooks? Learn on the go with our new app.

Recommended from Medium

KiChain 1 - Upgrade Announcement

DeFine partners with Cere Network to build a decentralized and secure NFT ecosystem

NerveNetwork is partnering with Harmony

MaticLaunch Monthly Update — October 2021

AMA with Steven Pu at LA Blockchain Summit.

Moving Into a Trustless World with Blockchain

BitCherry Introducing Distributed Business Model on Consensus: Distributed by CoinDesk

Get the Medium app

A button that says 'Download on the App Store', and if clicked it will lead you to the iOS App store
A button that says 'Get it on, Google Play', and if clicked it will lead you to the Google Play store
Andrew Stone

Andrew Stone

More from Medium


1000 True Fans Will Make You Rich

NFTs: A Beginner’s Guide to the Latest Blockchain Trend

Basics of Cryptocurrency and introduction to Ethereum

Basics of Cryptocurrency and introduction to Ethereum-iFourTechnolab