RANC: reward-all nakamoto consensus

Abstract

In this work we present Reward-All Nakamoto-Consensus (RANC), a Proof-of-Work cryptocurrency that resiliently rewards each miner with a number of coins that is directly proportional to its individual mining power, rather than to its relative share of the entire network's mining power as done in Bitcoin. Under this approach, the security of mining in RANC achieves near-perfect incentive compatibility, and near-zero censorship susceptibility, for adversarial mining shares up to 45%, but at the cost of regression in subversion-gain resilience. Moreover, mining rewards in RANC exhibit significantly lower variance for non-majority miners compared to NC, enabling dependable reward stability. Consequently, depending on the network transaction-fees, RANC improves miner's waiting time for rewards, and incentivizes forming mining pools smaller than required in Bitcoin for equal reward stability. A detailed specification of RANC is presented, along with an evaluation of the practicality and efficiency achieved by our prototype RANC implementation.