We’d like to introduce VRF-based mining, a surprisingly simple and effective way of making pooled mining impossible. Instead of using hash functions, we use Verifiable Random Functions (VRFs) for proof-of-work-based consensus. As VRF binds the authorship with hashes, a pool operator should reveal his private key to outsource the mining process to miners, and miners can easily steal cryptocurrency in the pool operator’s wallet anonymously.
This technique is originally designed for conventional blockchains. For MimbleWimble-based blockchains without address, the binding can be achieved by using the private key holding the coinbase transaction to execute the VRF.
Please find the details here https://hackmd.io/@ZcwjuAe3RUCFVPrXtvriPQ/S1YM1KZWI. It will be more than great if you have any feedback on it.
This idea is co-developed by Runchao Han (me, email@example.com) and Haoyu Lin (firstname.lastname@example.org). We thank Cheng Wang, Omer Shlomovits and Jiangshan Yu for their valuable feedback.