Hashrate required for Finney attack on SatoshiDICE

2

Say I have an address with 1000 different 0.01BTC outputs. I send all of the outputs (in separate transactions) to the 48% SatoshiDICE address. At the same time, I craft a transaction for each of the outputs that sends the money back to myself. Once I find out which of the bets succeeded, I start mining. I include the SatoshiDICE bets where I won, and I cancel the ones where I lost (using the conflicting transaction I generated earlier). So basically if I mine the next block, I cancel all the bets where I lost, and only keep the ones where I won. My question is, what percent of the network hashrate do I need to make this profitable?

lurf jurv

Posted 2013-11-24T21:37:00.897

Reputation: 2 516

Question was closed 2013-11-28T22:12:39.003

I seem to recall hearing that mining clients may refuse to build on blocks that include a lot of transactions they haven't seen. If that's true, then you risk having your block rejected and losing your reward. – Nate Eldredge – 2013-11-25T00:48:39.160

The question is closely related, but this one focuses more on the hash-rate required. – Murch – 2013-11-25T10:32:09.783

Answers

0

There is no magic barrier above which you will make a profit, it's a tradeoff. The larger your hashrate the higher your chances of successfully completing the finney attack. The odds at SatoshiDice are a bit at your disadvantage, but in a system where you'd get back what you wagered in expectation you'd always make a profit.

cdecker

Posted 2013-11-24T21:37:00.897

Reputation: 7 878

Sorry, I meant over time, I should have been more clear. I know that for each individual one, it's random, like flipping a coin. However if you attempt this repeatedly, what hashrate that you need to make a profit? – lurf jurv – 2013-11-25T12:36:40.953

Asked: 2013-11-24T21:37:00.897

Viewed: 193 times

Active: 2016-03-16T10:28:17.387