Blockchain & Cryptocurrency Glossary

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Block Withholding Attack

1 min read
Pronunciation
[blok with-hol-ding uh-tak]
Analogy
Like a team member hiding a discovered solution so their teammates can’t benefit from it.
Definition
A subversive mining strategy where a miner or pool member finds a valid block but withholds it from the network or pool to harm others’ revenue.
Key Points Intro
Withholding attacks reduce honest miners’ rewards and can destabilize pools.
Key Points

Pool sabotage: Attacker submits shares but withholds full block solutions.

Selfish mining: Related tactic withholding blocks to gain relative advantage.

Reward theft: Honest miners share lower rewards due to hidden blocks.

Detection difficulty: Hard to distinguish from normal orphaned blocks.

Example
A rogue miner in a pool finds a block but doesn’t submit it to the pool operator, reducing the pool’s overall payout while still earning share-based rewards.
Technical Deep Dive
Pool protocols track share submissions; an attacker withholds PPoW (proof‑of‑work) but continues submitting partial shares. Statistical deviation tests on share-to-block ratios can flag suspects. Mitigations include slashing conditions or PPLNS payout adjustments.
Security Warning
Undetected withholding can erode trust in pools and incentivize centralization as miners flee unreliable pools.
Caveat
Statistical detection has false positives; harsh penalties may punish honest variance.

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