A New Attack Scheme on the Bitcoin Reward System

Abstract

The reward of the Bitcoin system is designed to be proportional to miner's computational power. However, rogue miners can increase their rewards by using the block withholding attacks. For raising awareness on the Bitcoin reward system, a new attack scheme is proposed, where the attackers infiltrate into an open pool and launch the selfish mining as well as the block withholding attack. The simulation results demonstrate that the proposed attack outperforms the conventional block withholding attacks.