Proof of Experience: empowering Proof of Work protocol with miner previous work

Abstract

Even after 12 years of services, Bitcoin still remains the first e-cash system and most influential player in the cryptocurrency market. For each block, the underlying distributed Proof of Work consensus where much computing power (named miners) is required to solve a hard mathematical problem, rewards the first one solving and sharing the solution with the rest of the network. Two main issues regarding this consensus can be easily pointed out i.e. the computation power spend by miners is a waste since only one of them will be rewarded, and miners with much smaller computing capacity can almost never solve the mathematical problem, hence cannot earn any reward. This paper proposes a substantial amendment to the existing Bitcoin consensus by using the wasted computation to adjust the difficulty of each miner that did provide computation effort overtime. Therefore, anytime a miner justifies of its work toward the consensus hence the network, without reaching the solution, then its difficulty will decrease accordingly for next blocks.