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We study an adversary who attacks a Proof-of-Work (POW) blockchain by selfishly constructing an alternative longest chain. We characterize optimal strategies employed by the adversary when a difficulty adjustment rule al\`a Bitcoin applies.…

Cryptography and Security · Computer Science 2023-08-30 Tzuo Hann Law , Selman Erol , Lewis Tseng

We study to what extent the Bitcoin blockchain security permanently depends on the underlying distribution of cryptocurrency market outcomes. We use daily blockchain and Bitcoin data for 2014-2019 and employ the ARDL approach. We test three…

General Economics · Economics 2021-02-18 Pavel Ciaian , d'Artis Kancs , Miroslava Rajcaniova

The study examines whether fama-french equity factors can effectively explain the idiosyncratic risk and return characteristics of Bitcoin. By incorporating Fama-french factors, the explanatory power of these factors on Bitcoin's excess…

Statistical Finance · Quantitative Finance 2024-07-02 Shubham Singh

Proof-of-Work (PoW) is a Sybil control mechanism adopted in blockchain-based cryptocurrencies. It prevents the attempt of malicious actors to manipulate distributed ledgers. Bitcoin has successfully suppressed double-spending by accepting…

Cryptography and Security · Computer Science 2022-08-31 Suhyeon Lee , Donghwan Lee , Seungjoo Kim

Bitcoin-NG is an extensible blockchain protocol based on the same trust model as Bitcoin. It divides each epoch into one Key-Block and multiple Micro-Blocks, effectively improving transaction processing capacity. Bitcoin-NG adopts a special…

Cryptography and Security · Computer Science 2023-06-07 Junjie Hu , Zhe Jiang , Chunxiang Xu

Most online lotteries today fail to ensure the verifiability of the random process and rely on a trusted third party. This issue has received little attention since the emergence of distributed protocols like Bitcoin that demonstrated the…

Distributed, Parallel, and Cluster Computing · Computer Science 2017-09-18 Stéphane Grumbach , Robert Riemann

Differential cryptanalysis is one of the most popular methods in attacking block ciphers. However, there still some limitations in traditional differential cryptanalysis. On the other hand, researches of quantum algorithms have made great…

Quantum Physics · Physics 2015-12-01 Hong-Wei Li , Li Yang

We investigate security properties of the Anshel-Anshel-Goldfeld commutator key-establishment protocol used with certain polycyclic groups. We show that despite low success of the length based attack the protocol can be broken by a…

Group Theory · Mathematics 2015-04-21 Matvei Kotov , Alexander Ushakov

A central challenge in password security is to characterize the attacker's guessing curve i.e., what is the probability that the attacker will crack a random user's password within the first $G$ guesses. A key challenge is that the guessing…

Cryptography and Security · Computer Science 2022-09-22 Jeremiah Blocki , Peiyuan Liu

In 2008, Satoshi Nakamoto proposed an electronic cash system (bitcoin) that is completely realized by peer-to-peer technology. The core value of this scheme is that it proposes a solution based on Proof-of Work, so that the cash system can…

Cryptography and Security · Computer Science 2018-11-19 Zhiniang Peng , Yuki Chen

Recently, blockchain has been applied in various fields to secure data exchanges and storage in decentralized systems. In a blockchain application where the task of the application which makes use of the data stored in a blockchain has to…

Cryptography and Security · Computer Science 2023-04-21 Yiming Jiang , Jiangfan Zhang

An algorithm is presented which implements a probabilistic attack on the key-exchange protocol based on permutation parity machines. Instead of imitating the synchronization of the communicating partners, the strategy consists of a Monte…

Cryptography and Security · Computer Science 2012-10-26 Luís F. Seoane , Andreas Ruttor

Blockchain like Bitcoin and Ethereum suffer from scalability issues. Sharding is one of the most promising and leading solutions to scale blockchain. The basic idea behind sharding is to divide the blockchain network into multiple…

Cryptography and Security · Computer Science 2021-04-16 Hafid Abdelatif , Senhaji Hafid Abdelhakim , Samih Mustapha

We present three very simple variants of the classic Heads or Tails game using chips, each of which contributes to our understanding of the Bitcoin protocol. The first variant addresses the issue of temporary Bitcoin forks, which occur when…

Cryptography and Security · Computer Science 2024-05-08 Cyril Grunspan , Ricardo Perez-Marco

The long-term dependence of Bitcoin (BTC), manifesting itself through a Hurst exponent $H>0.5$, is exploited in order to predict future BTC/USD price. A Monte Carlo simulation with $10^4$ geometric fractional Brownian motion realisations is…

Computational Finance · Quantitative Finance 2017-08-04 Mariusz Tarnopolski

This paper studies proof-of-work Nakamoto consensus protocols under bounded network delays, settling two long-standing questions in blockchain security: What is the most effective attack on block safety under a given block confirmation…

Cryptography and Security · Computer Science 2025-09-16 Shu-Jie Cao , Dongning Guo

This paper presents a stochastic model for block arrival times based on the difficulty retargeting rule used in Bitcoin, as well as other proof-of-work blockchains. Unlike some previous work, this paper explicitly models the difficulty…

Cryptography and Security · Computer Science 2018-12-31 Daniel Fullmer , A. S. Morse

Bitcoin is the first secure decentralized electronic currency system. However, it is known to be inefficient due to its proof-of-work (PoW) consensus algorithm and has the potential hazard of double spending. In this paper, we aim to reduce…

Cryptography and Security · Computer Science 2018-07-10 Chi-Ning Chou , Yu-Jing Lin , Ren Chen , Hsiu-Yao Chang , I-Ping Tu , Shih-wei Liao

In recent years, Bitcoin price prediction has attracted the interest of researchers and investors. However, the accuracy of previous studies is not well enough. Machine learning and deep learning methods have been proved to have strong…

Statistical Finance · Quantitative Finance 2021-06-25 Liping Yang

We calculate the probability of success of block-hiding mining strategies in Bitcoin-like networks. These strategies involve building a secret branch of the block-tree and publishing it opportunistically, aiming to replace the top of the…

Cryptography and Security · Computer Science 2014-02-19 Assaf Shomer
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