BLOCKCHAIN: RESOURCE UTILISATION ANALYSIS WITH A GAME THEORY PERSPECTIVE
Abstract
Major blockchain networks are using proof-of-work based consensus protocols to establish trust and decentralize resource management with different incentive mechanisms for the participants or nodes in the network. We formulate the computation resource management in the blockchain consensus process as a three stage Stackelberg game, where the profits of the miners, users and distributed app initiators are jointly optimized. Optimal decisions and strategies are devised in order to achieve the optimization through the Stackelberg equilibrium. Further, we study the interactions among these entities through a real experiment and the results are employed to justify our proposed model.