Introduction
Blockchain technology has emerged as a transformative force across various sectors, evolving from its origins in cryptocurrency to applications in IoT, healthcare, and supply chain management. This survey bridges the gap between extensive research on game-theoretic approaches in blockchain networks and the absence of a consolidated review. We analyze game models addressing key blockchain challenges, including security threats (e.g., selfish mining, DoS attacks), mining management (e.g., computational power allocation), and energy trading.
Core Issues Addressed
- Security Vulnerabilities: Mitigation strategies for majority attacks and transaction reversals.
- Mining Incentives: Fair reward distribution and pool selection dynamics.
- Economic and Energy Efficiency: Decentralized energy trading models.
Game-Theoretic Models in Blockchain
1. Security and Consensus Protocols
- Selfish Mining: Demonstrated by Eyal and Sirer, where minority coalitions exploit protocol weaknesses to gain disproportionate rewards.
- Nakamoto Consensus: Enhanced with FruitChain to ensure δ-approximate fairness, deterring sybil attacks via computational puzzles.
👉 Explore Bitcoin's consensus mechanisms
Key Insight:
"Honest participation becomes an (n/2)-coalition-safe 3δ-Nash equilibrium in FruitChain, minimizing deviation incentives." — Pass & Shi (2017)
2. Mining Management
- PPLNS Pools: Vulnerable to delayed share reporting; efficiency declines with intra-pool inequality.
- Stackelberg Game for Mining Pools: Optimal pricing strategies to balance supply-demand in Proof-of-Work systems.
Table: Comparison of Mining Pool Strategies
| Strategy | Fairness | Vulnerability to Attacks |
|----------------|----------|--------------------------|
| Geometric Pay | High | Low |
| PPLNS | Medium | High (delay attacks) |
3. Energy Trading and IoT
- Peer-to-Peer (P2P) Markets: Blockchain-enabled energy trading reduces reliance on centralized grids.
- Credit-Based Payments: Fast-tracks transactions in Industrial IoT (IIoT) microgrids.
Challenges and Future Directions
- Scalability: Integration with edge computing to alleviate resource constraints.
- Trustless Verification: Smart contracts for audit-based validation (e.g., Ouroboros).
- Regulatory Risks: Cyber-insurance models to hedge double-spending attacks.
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FAQs
Q1: How does game theory improve blockchain security?
A1: It models rational miner behavior, identifying Nash equilibria to design attack-resistant protocols (e.g., FruitChain).
Q2: What are the energy costs of blockchain consensus?
A2: Proof-of-Work consumes significant resources; alternatives like Proof-of-Stake (Ouroboros) reduce energy use by 99%.
Q3: Can blockchain ensure fair reward distribution?
A3: Yes, via mechanisms like geometric pay pools, which optimize steady-state utility for miners.
Conclusion
Game theory provides robust frameworks to address blockchain’s decentralized challenges, from security to economic fairness. Future advancements hinge on integrating scalable solutions like edge computing and enhancing incentive compatibility.