Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/238906 
Authors: 
Year of Publication: 
2018
Citation: 
[Journal:] Journal of Risk and Financial Management [ISSN:] 1911-8074 [Volume:] 11 [Issue:] 4 [Publisher:] MDPI [Place:] Basel [Year:] 2018 [Pages:] 1-18
Publisher: 
MDPI, Basel
Abstract: 
Cryptocurrencies such as Bitcoin rely on a proof-of-work system to validate transactions and prevent attacks or double-spending. A new proof-of-work is introduced which seems to be the first number theoretic proof-of-work unrelated to primes: it is based on a new metric associated to the Collatz algorithm whose natural generalization is algorithmically undecidable: the inflation propensity is defined as the cardinality of new maxima in a developing Collatz orbit. It is numerically verified that the distribution of inflation propensity slowly converges to a geometric distribution of parameter 0.714 ≈ (π−1)/3 as the sample size increases. This pseudo-randomness opens the door to a new class of proofs-of-work based on congruential graphs.
Subjects: 
geometric distribution
collatz conjecture
inflation propensity
systemic risk
cryptocurrency
blockchain
proof-of-work
JEL: 
C46
C65
O39
Persistent Identifier of the first edition: 
Creative Commons License: 
cc-by Logo
Document Type: 
Article

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