{"ID":3050055,"CreatedAt":"2026-06-04T02:13:16.786527022Z","UpdatedAt":"2026-06-06T11:59:53.540122282Z","DeletedAt":null,"paper_url":"https://arxiv.org/abs/2606.04819","arxiv_id":"2606.04819","title":"The Usefulness Gap in Proof-of-Useful-Work: An Empirical Study of Pearl's cuPOW Protocol","abstract":"Pearl, a Layer-1 blockchain with high-profile AI industry endorsements, markets its Proof-of-Useful-Work (PoUW) protocol as simultaneously securing the network and performing AI inference. We present the first systematic empirical measurement of a deployed PoUW system, finding that Pearl's 24 EH/s network -- representing approximately 320,000 GPU-equivalents consuming an estimated 112 MW -- produces zero useful AI computation. Budget GPU rental prices rose 38% and utilization surged from 57% to 94% following the mining software's public release, displacing legitimate research workloads. Our measurements span five dimensions: (1) network composition analysis of 8,012 workers shows all have inference-capable hardware, yet the dominant mining software contains no inference code; (2) the verification protocol accepts random matrices by design, confirmed by 44 pool-accepted shares from our open-source miner across NVIDIA, AMD, CPU, and Apple Silicon hardware; (3) statistical distribution checks are trivially defeated by adversarial Gaussian sampling; (4) mining is unprofitable at current PRL prices ($0.21) across all GPU tiers (-54% to -72% ROI); and (5) the mining computation is commodity integer arithmetic portable to any hardware platform, offering no vendor lock-in. These findings quantify the verifiability-usefulness tension identified theoretically by Leinweber et al., providing concrete measurements of its magnitude and economic consequences in a deployed system.","short_abstract":"Pearl, a Layer-1 blockchain with high-profile AI industry endorsements, markets its Proof-of-Useful-Work (PoUW) protocol as simultaneously securing the network and performing AI inference. We present the first systematic empirical measurement of a deployed PoUW system, finding that Pearl's 24 EH/s network -- representi...","url_abs":"https://arxiv.org/abs/2606.04819","url_pdf":"https://arxiv.org/pdf/2606.04819v1","authors":"[\"Abhinaba Basu\"]","published":"2026-06-03T12:42:29Z","proceeding":"cs.CR","tasks":"[\"cs.CR\",\"cs.CY\",\"cs.DC\"]","methods":"[]","has_code":false}