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Bitcoin's approach to solving the double spending problem is to make a collusion and attack on the network prohibitively expensive. One of the main factors that will determine Bitcoin's chance of survival in the long-term is whether the behavior that maximizes the profits of miners contributes to or sabotages the health of the network.

The game theory that determines this is complex and our understanding of it still incomplete. But research is increasing and two people who have been at the forefront of this work are Emin Gün Sirer, a professor in computer science at Cornell University, and Ittay Eyal, a post-doc at the same department.

They joined us for a fascinating discussion of their work on 'selfish mining', the incentive structure that underlies Bitcoin and their recent positive conclusions from the Miner's Dilemma. 

Topics covered included:
        - Emin Gün Sirer's early interest in cryptocurrencies and work on a cryptocurrency to incentivize bittorrent users in 2004
        - What selfish mining is and how miners could profit from withholding blocks
        - How an attacker would execute a selfish mining attack
        - Why the miner's dilemma implies that the equilibrium might be small mining pools
        - Why the lack of security of clients and servers is holding back adoption

Links mentioned in this episode: 

- Selfish Mining paper (PDF): http://bit.ly/1DsCgEK
- Miner's Dilemma blog post: http://bit.ly/1EcdbSe
- Miner's Dilemma paper (PDF): http://bit.ly/1djBsgj
- Hacking, Distributed: http://bit.ly/1A4YTyJ
- Meni Rosenfeld's paper on mining pool reward systems (PDF): http://bit.ly/1djBFQL


Sponsors: 

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Show notes: http://epicenterbitcoin.com/podcast/076


Epicenter Bitcoin is hosted by Brian Fabian Crain & Sébastien Couture.
 
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EB76 – Emin Gün Sirer & Ittay Eyal: From Selfish Miners To The Miner's Dilemma

Making the effort to see beyond the spin and share the journey's excitement.  Are you a spinhacker? Let's team up.  Note: the background image is the 1888 Flammarion Engraving by an unknown artist https://en.wikipedia.org/wiki/Flammarion_engraving

Epicenter is a podcast about the technologies, projects & people driving decentralization and the global blockchain revolution.

Epicenter is hosted by Brian Fabian Crain, Sebastien Couture and Meher Roy. Every week, we find the most interesting people in the industry for in-depth discussions about their projects, ideas and stories.