Thesis:

A framework for rational mining in proof-of-work blockchain networks

This thesis proposes a framework for rational mining in Proof-of-Work blockchain networks through decision-making, addressing the challenge of selecting the most profitable mining configuration considering dynamic network conditions. Mining profitability depends on multiple factors, such as hardware, cryptocurrencies, mining pools and reward systems, making the selection of mining configuration complex. Existing academic models and online mining calculators simplify the impact of mining pools and reward systems. To address these limitations, this work introduces a decision-support framework that integrates hardware devices, cryptocurrencies, mining pools, and reward systems using real-time blockchain data. The se- lection problem is formalized as a binary linear programming model that identifies the optimal mining configuration based on expected profitability. The framework incorporates reward system formulations and mining pools, supporting pool-based mining environments. The proposed framework is validated through simulations, comparisons with an existing academic model, external mining calculators, and real mining executions. Experimental results show that the profitability estimations produced by the framework are consistent with observed real mining scenarios. Additionally, The framework successfully identified the rational mining option among available alternatives. Overall, this thesis provides a practical and extensible foundation for rational mining decision-making in Proof-of-Work blockchain networks.