English

TEE-BFT: Pricing the Security of Data Center Execution Assurance

Theoretical Economics 2025-11-06 v3

Abstract

Blockchains face inherent limitations when communicating outside their own ecosystem, largely due to the Byzantine Fault Tolerant (BFT) 3f+1 security model. Trusted Execution Environments (TEEs) are a promising mitigation because they allow a single trusted broker to interface securely with external systems. This paper develops a cost-of-collusion principal-agent model for compromising a TEE in a Data Center Execution Assurance design. The model isolates the main drivers of attack profitability: a K-of-n coordination threshold, independent detection risk q, heterogeneous per-member sanctions F_i, and a short-window flow prize (omega) proportional to the value secured (beta times V). We derive closed-form deterrence thresholds and a conservative design bound (V_safe) that make collusion unprofitable under transparent parameter choices. Calibrations based on time-advantaged arbitrage indicate that plausible TEE parameters can protect on the order of one trillion dollars in value.

Keywords

Cite

@article{arxiv.2510.26091,
  title  = {TEE-BFT: Pricing the Security of Data Center Execution Assurance},
  author = {Alex Shamis and Matt Stephenson and Linfeng Zhou},
  journal= {arXiv preprint arXiv:2510.26091},
  year   = {2025}
}

Comments

Missing section + image issue

R2 v1 2026-07-01T07:13:07.479Z