PoW Blockchain Network's Short-term Self-correction Mechanism

This paper empirically analyzes PoW blockchain network’s short-term self- correction mechanism through examining the impact of daily network hashrate fluctuation on miner per hashrate income. Using data from Bitcoin blockchain network, we find that network hashrate fluctuation negatively affects miner per hashrate transaction fee income and positively affects miner per hashrate block re- ward income. Further tests show that network hashrate fluctuation affects miner transaction fee income through negatively influencing both per hashrate transaction number and average transaction fee. In robustness tests, we find that user trans- action fee might have heterogenous price rigidity. Our paper provides empirical evidence for theory on PoW blockchain network’s short-term stability.