@article{Philippopoulos_Ricottone_G. Oliver_2020, title={Difficulty Scaling in Proof of Work for Decentralized Problem Solving}, volume={5}, url={https://ledgerjournal.org/ojs/ledger/article/view/194}, DOI={10.5195/ledger.2020.194}, abstractNote={<p>We propose DIPS (Difficulty-based Incentives for Problem Solving), a simple modification of the Bitcoin proof-of-work algorithm that rewards blockchain miners for solving optimization problems of scientific interest. The result is a blockchain which redirects some of the computational resources invested in hash-based mining towards scientific computation, effectively reducing the amount of energy ‘wasted’ on mining. DIPS builds the solving incentive directly in the proof-of-work by providing a reduction in block hashing difficulty when optimization improvements are found. A key advantage of this scheme is that decentralization is not greatly compromised while maintaining a simple blockchain design. We study two incentivization schemes and provide simulation results showing that DIPS is able to reduce the amount of hash-power used in the network while generating solutions to optimization problems.</p>}, journal={Ledger}, author={Philippopoulos, Pericles and Ricottone, Alessandro and G. Oliver, Carlos}, year={2020}, month={Aug.} }