Say I have an address with 1000 different 0.01BTC outputs. I send all of the outputs (in separate transactions) to the 48% SatoshiDICE address. At the same time, I craft a transaction for each of the outputs that sends the money back to myself. Once I find out which of the bets succeeded, I start mining. I include the SatoshiDICE bets where I won, and I cancel the ones where I lost (using the conflicting transaction I generated earlier). So basically if I mine the next block, I cancel all the bets where I lost, and only keep the ones where I won. My question is, what percent of the network hashrate do I need to make this profitable?
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I seem to recall hearing that mining clients may refuse to build on blocks that include a lot of transactions they haven't seen. If that's true, then you risk having your block rejected and losing your reward.– Nate EldredgeCommented Nov 25, 2013 at 0:48
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The question is closely related, but this one focuses more on the hash-rate required.– Murch ♦Commented Nov 25, 2013 at 10:32
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1 Answer
There is no magic barrier above which you will make a profit, it's a tradeoff. The larger your hashrate the higher your chances of successfully completing the finney attack. The odds at SatoshiDice are a bit at your disadvantage, but in a system where you'd get back what you wagered in expectation you'd always make a profit.
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Sorry, I meant over time, I should have been more clear. I know that for each individual one, it's random, like flipping a coin. However if you attempt this repeatedly, what hashrate that you need to make a profit? Commented Nov 25, 2013 at 12:36