An Economic Analysis of Difficulty Adjustment Algorithms in Proof-of-Work Blockchain Systems
成果类型：
Article; Early Access
署名作者：
Noda, Shunya; Okumura, Kyohei; Hashimoto, Yoshinori
署名单位：
University of Tokyo; University of Wisconsin System; University of Wisconsin Madison
刊物名称：
INTERNATIONAL ECONOMIC REVIEW
ISSN/ISSBN：
0020-6598
DOI：
10.1111/iere.70028
发表日期：
2025
关键词：
摘要：
We study the stability of cryptocurrency systems through difficulty adjustment. Bitcoin's difficulty adjustment algorithm (DAA) exhibits instability when the reward elasticity of the hash rate is high, implying that a sharp price reduction could disrupt the current Bitcoin system. By contrast, newer DAAs developed and installed for other cryptocurrencies remain stably under substantially weaker conditions; thus, Bitcoin can inherently address this concern by upgrading its DAA. However, miners with high marginal costs profit from the existing DAA's instability and may oppose reforms that are beneficial for users. This finding highlights a critical challenge for the sustainability of cryptocurrencies.
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