Analysis of the Mining Pool Refusal to Package Attack Faced by NEST Oracle Machine

The NEST distributed Oracle Machine aims to allow more on-chain users to participate in the determination process of price conversion relationships, thereby improving the reliability of data results and the security of the system. To address potential malicious quotes, NEST has designed a quote-taking submission verification mechanism that allows validators to trade based on quotes and propose corrections.

However, the effective operation of this mechanism relies on the timely appearance of eat-order transactions and new quotes in the new blocks on the chain. With the rise of Mining Pools, miners have formed larger computing power collections for stable income. This has led to a monopoly on transaction packaging rights, and large Mining Pools may prioritize transactions that are beneficial to themselves or have higher fees.

When this situation occurs in the NEST Oracle Machine, new quotes may not be verified in a timely manner during the verification period, ultimately leading to the output of incorrect price data. This creates arbitrage opportunities for certain Mining Pools, thereby threatening the security of the entire DeFi ecosystem.

Attack Process Analysis:

1. Malicious Mining Pools hoard cryptocurrencies for arbitrage in advance through methods such as flash loans.

2. Make an offer to NEST that has a significant difference from the actual market price.

3. During the verification period, other Mining Pools face the choice of whether to package the corrected transactions into the next block.

4. Each mining pool makes decisions based on hash power proportion and potential earnings, forming a complete information static game.

5. Mining Pool may choose not to correct the quote in order to obtain greater arbitrage profits.

This type of attack not only threatens the NEST Oracle Machine, but also challenges the decentralized concept of the entire blockchain. The issues brought about by the Mining Pool phenomenon have become a major obstacle on the path to true decentralization.

Addressing the issues brought about by Mining Pools has become one of the important challenges faced in the current blockchain field. It is necessary to balance the contradiction between decentralization and the concentration of computing power while ensuring network security and efficiency. This may require innovation and improvement from multiple aspects such as consensus mechanisms and incentive mechanisms.