Controlling the Difficulty of Combinatorial Optimization Problems for Fair Proof-of-Useful-Work-Based Blockchain Consensus Protocol

Abstract

The wide range of Blockchain (BC) applications and BC’s ubiquity come from the fact that BC, as a collection of records linked to each other, is strongly resistant to alteration, protected using cryptography, and maintained autonomously. All these benefits come with a cost, which in BC is expressed by a very high use of energy needed to execute consensus protocols. Traditionally, consensus protocols based on Proof-of-Work (PoW) ensure fairness, but are not very useful. The paradigm proposed in the recent literature, known as Proof-of-Useful-Work (PoUW), assumes the completion of additional useful work for the same amount of resources (energy) used. However, the majority of the proposed PoUW approaches do not adequately consider fairness in balancing and controlling the difficulty of the work miners need to perform. A minority of the studies that do address fairness in miners’ work utilize PoW as a tool to ensure it. Therefore, a general framework to provide a structure for understanding the difficulty of useful work and how it can be used to fine-tune the complexity of miners’ effort in PoUW-based consensus protocols is proposed in this paper. The main characteristic of the proposed framework is that controlling the difficulty and fairness of miners’ work in PoUW-based consensus protocols is achieved exclusively through the useful work. The modules of the framework are discussed, and many research challenges and opportunities are articulated. The benefits of the proposed approach are illustrated taking as an example two optimization algorithms for a variant of the scheduling problem. In addition, the steps that should be taken to make this general framework applicable to any PoUW-based consensus protocols are identified.

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“…Males̆ et al. (2023) develop a general framework for difficulty estimation of the useful work. The proposed approach allows controlling and balancing the work of miners while ensuring the reward fairness and the block insertion time stability.…”