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Ethereum: How it works with concurrent miners and prevents subversion

When a new block is added to the Ethereum blockchain, miners are responsible for verifying the transactions contained in the block and ensuring that they are valid. However, to do this efficiently, they must start their work from scratch. This process involves recalculating the hashes of the previous block and the contents of the new block, which can be computationally expensive.

There is, however, a solution that prevents concurrent miners from sabotaging each other’s work. The Ethereum network uses a consensus algorithm called Proof of Work (PoW), which requires miners to solve complex mathematical puzzles in order to validate transactions and create new blocks.

The Problem with Subversion

In the absence of a consensus algorithm like PoW, there is an inherent risk that multiple miners will independently attempt to subvert each other’s work. If two or more miners were able to obtain the same hash for a block, they could potentially use it as “proof” that their previous hash was correct and thus avoid verifying certain transactions.

For example, imagine that two miners are competing to solve the first few mathematical puzzles needed to create a new block. Both miners can independently calculate the same hash for their previous hashes, which would be considered valid by most other miners on the network. However, if they share that same hash with each other, it could be considered proof that their previous work was correct and therefore unnecessary.

The Solution: Proof of Stake

To avoid such subversion, Ethereum’s PoW consensus algorithm uses a different approach. Miners must “stake” their own Ether (the network’s native cryptocurrency) in order to participate in validating transactions and creating new blocks.

When a miner solves the mathematical puzzle associated with creating a new block, they earn a certain amount of Ether, which they can use to “lock” their stake. The longer they keep their stake locked, the more likely it is that other miners will choose to partner with them to solve the puzzle and gain an advantage.

This creates a situation where multiple miners have an incentive to work together to achieve their goal, but there is no way for individual miners to subvert each other’s work. The collective effort of all miners on the network ensures that any attempt at subversion will be detected and penalized by the network.

Conclusion

In conclusion, Ethereum’s Proof of Work consensus algorithm has proven to be a very effective solution to prevent subversion in a distributed network of concurrent miners. By incentivizing miners to work together and requiring them to share their computing resources in order to solve the puzzles associated with creating new blocks, the network ensures that any attempts at cheating will be detected and penalized by the community.

While there are other consensus algorithms available, such as Delegated Proof of Stake (DPoS) and Hashgraph, Ethereum’s PoW has proven to be a reliable and resilient solution for validating transactions and creating new blocks in a distributed network of miners.