Implementation of Dual-Binding Mining Mechanism

Dual-Binding Mining Flowchart

The dual-binding mining mechanism of Arca Chain closely integrates Bitcoin miners with the Arca Chain network, achieving a seamless connection between BTC mining and the production of ARCA tokens. This mechanism not only provides miners with dual rewards but also significantly enhances the decentralization and security of the Arca Chain network, while ensuring the fairness and transparency of the network.

1. Basic Principles of Dual-Binding Mining

In the Arca Chain network, dual-binding mining allows Bitcoin miners to bind their hash power to Arca Chain's Layer 2 network. This process is implemented through smart contracts and cross-chain bridges to ensure transparency and security of operations.

The specific implementation process is as follows:

• Hash Power Allocation: Miners can allocate a portion of their hash power to the Arca Chain network while maintaining mining activities on the Bitcoin mainnet. This allocation is dynamic, allowing miners to adjust based on market conditions and personal strategies at any time.

• Proof of Work Integration: Arca Chain's core layer adopts an improved Proof of Work (PoW) algorithm, allowing Bitcoin miners to participate in Arca Chain mining without changing their equipment.

• Reward Mechanism: Miners participating in dual-binding mining can not only receive block rewards from the Bitcoin network but also earn native tokens and transaction fees from the Arca Chain network. This dual reward greatly enhances the economic efficiency of mining.

• Cross-Chain Verification: Arca Chain verifies the proof of work of miners on the Bitcoin mainnet through a cross-chain bridge to ensure the authenticity and fairness of dual-binding mining.

• Dynamic Difficulty Adjustment: The system dynamically adjusts the mining difficulty of the Arca Chain network based on the overall hash power allocation to maintain network stability and security.

According to the formula $W = \frac{H_i}{\Sigma H}$ , where $W$ is the proof of stake for miner $i$ in the Arca Chain network, $H_i$ is the hash power contribution of miner $i$, and $\Sigma H$ is the total hash power of all miners participating in the Arca Chain network. The amount of ARCA tokens miners receive in the Arca Chain network is proportional to their hash power contribution, ensuring fair distribution of stakes.

2. Advantages of Dual-Binding Mining

• Dual Rewards: Miners can generate BTC while also earning ARCA tokens. This dual reward mechanism not only increases miners' return rates but also attracts more miners to join the Arca Chain network, enhancing the network's activity and degree of decentralization.

  The total revenue $P_{total}$ for miners is set as:

$$P_{total}=H\times(R_{BTC}+R_{TMS})$$

where $H$ is the hash power contributed by the miner, and $R_{BTC}$ and $R_{TMS}$ are the return rates for the Bitcoin and Arca Chain networks, respectively. This formula indicates that the total revenue of miners is the weighted sum of Bitcoin and ARCA revenues, incentivizing miners to participate in the construction of both networks.

• Network Security Enhancement: The generation of ARCA tokens is directly linked to the hash power of Bitcoin miners, meaning the more hash power involved in mining, the higher the overall security of the Arca Chain network. According to the basic principles of the PoW mechanism, the difficulty $D$ of resisting attacks is positively correlated with the total hash power $H_{network}$:

$$D=\frac{H_{network}}{H_{attacker}}$$

Through the dual-binding mining mechanism, the total hash power of the Arca Chain network is increased, thereby improving the network's ability to resist attacks and significantly raising the hash power and costs required by attackers.

• Enhanced Miner Motivation: The high energy consumption and equipment costs associated with traditional BTC mining often create financial strain on miners. Through Arca Chain's dual-bound mining mechanism, miners can achieve greater returns without incurring additional costs, thereby making them more willing to participate in this network.

• Technical Implementation and Integration with Smart Contracts:

  • The implementation of dual-bound mining heavily relies on smart contracts, which are responsible for:

    • Computing Power Recording and Mapping: Recording the miners' computing power contributions and mapping them onto the Arca Chain network to calculate the corresponding ARCA tokens.

    • Distribution of Rights and Rewards: Automatically distributing ARCA tokens based on predefined rules and logic, and issuing them to the respective miners.

    • Management of Interactions between Miners and the Network: Smart contracts also manage the interactions between miners and the Arca Chain network, including computing power binding and reward distribution, thereby ensuring the entire process is transparent and automated.

  The introduction of smart contracts not only reduces the possibility of human intervention but also ensures the entire mining process is fair and secure.

• The Practical Significance of Dual-Bound Mining:

By combining BTC mining with ARCA token generation, Arca Chain's dual-bound mining mechanism brings significant benefits to both miners and the network. Miners can earn additional returns through this innovative mechanism, while the Arca Chain network can attract more computing power support, thereby enhancing the network's security and decentralization. Additionally, the integration of smart contracts ensures the transparency and efficiency of the entire mining process, allowing participants to earn returns through a fair and reliable mechanism.

The successful implementation of dual-bound mining marks Arca Chain's innovation in the blockchain field and provides a solid foundation for future decentralized finance (DeFi) applications. This mechanism not only promotes technological advancement within the network but also injects new vitality and possibilities into the DeFi sector.