Application of ZD Strategy in Mining Pool Game

Blockchain is a decentralized billing system that guarantees mutual trust among parties through decentralized data storage, sophisticated encryption and signature technologies. The basis of blockchain is P2P distributed network, encryption algorithm and consensus mechanism. To improve the reward during the process of mining, the mining pool will choose to cooperate or attack with other mining pools. In this paper, the zero-determinant (ZD) strategy is applied to to optimize the strategy selection during the mining process, which enforces mining pools selecting cooperative mining and thereby increase the overall revenue of the pools. In addition, numerical illustrations are also presented to support our theoretical analysis.