By Darren Pauli, 19 Jun 2014

 

Researchers have scuttled Bitcoin mining mammoths such as GHash with a proposed system alteration that would end the money-making collectives and return fairness and stability to the crypto currency.

Cornell University academics (@IttalyEyal) Ittaly Eyal and Emin Gün Sirer (@el33th4xor) say their "Two Phase Proof of Work (2P-PoW)" is a simple solution to de-incentivise large Bitcoin mining pools.

 The problem the pair hope to address is the fact that big mining pools can cheat the system with selfish mining. The duo point out that pools with more than 25 percent of the total network could earn more than their fair share, more so for those with 33 percent. Even larger pools could 'double-spend' with low confirmations, while those with over 50 percent control, as in the case of GHash, were an "unmitigated disaster", they said.

 

The Register/ full read here/ http://www.theregister.co.uk/2014/06/19/pow_academics_ko_bitcoin_mining_mammoths/