Proof-of-work cryptocurrency centralization based on Capponi et al. 2023 model

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This report analyzes cryptocurrency centralization risks through a two-stage game-theoretic model, examining hash rate dependency on rewards and investment impacts. It highlights key findings, including reward decline increasing centralization, and empirical data reflecting Bitcoin's concentrated ownership and hash rate dominance. Current models are limited by static assumptions and simplified metrics. Literature spans foundational insights from Nakamoto (2008) to contemporary works by...