Abstract: Bitcoin’s block reward is dependent on miner hardware profiles such as computation capacity and mining hardware identities, therefore, incentivizing miners to upgrade mining rigs in order to mine more blocks and maximize the payoff. As a result, miners who refuse to upgrade mining hardware suffer decreasing payoff because the mining difficulty increases automatically as the computation power of the entire network grows. However, this phenomenon is highly counter-productive in Internet-of-Things (IoT) networks, where CPUs are embedded into various devices and hardware upgrading require non-trivial efforts, in addition to the constrained computational and power capabilities. As a result, we propose the Incremental Block Reward (IBR) to encourage miners to reuse mining hardware, thereby helping stabilize the network, reduce energy consumption, and encourage new miners (i.e. more devices) to join. The simulation results show IBR facilitates even wealth distribution and promotes more fair and long-term mining establishment.
Keywords: Internet-of-Things, Blockchain, Mining Reward, Hardware Upgrade, Monte-Carlo Simulation
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DOI:
10.17148/IJARCCE.2019.8802
