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Few assets in financial history have been as notoriously volatile as cryptocurrencies. While the long term outlook for this asset class remains unclear, we are successful in making short term price predictions for several major crypto…

Trading and Market Microstructure · Quantitative Finance 2019-12-02 David Zhao , Alessandro Rinaldo , Christopher Brookins

Bitcoin relies on a peer-to-peer overlay network to broadcast transactions and blocks. From the viewpoint of network measurement, we would like to observe this topology so we can characterize its performance, fairness and robustness.…

Cryptography and Security · Computer Science 2018-12-11 Sergi Delgado-Segura , Surya Bakshi , Cristina Pérez-Solà , James Litton , Andrew Pachulski , Andrew Miller , Bobby Bhattacharjee

We propose a secure and efficient implementation of fungible tokens on Bitcoin. Our technique is based on a small extension of the Bitcoin script language, which allows the spending conditions in a transaction to depend on the neighbour…

Cryptography and Security · Computer Science 2021-02-10 Massimo Bartoletti , Stefano Lande , Roberto Zunino

A trading system is said to be {robust} if it generates a robust return regardless of market direction. To this end, a consistently positive expected trading gain is often used as a robustness metric for a trading system. In this paper, we…

Optimization and Control · Mathematics 2022-11-04 Chung-Han Hsieh

Bitcoin is a cryptocurrency attracting a lot of interest both from the general public and researchers. There is an ongoing debate on the question of users' anonymity: while the Bitcoin protocol has been designed to ensure that the activity…

Cryptography and Security · Computer Science 2019-06-14 Remy Cazabet , Baccour Rym , Latapy Matthieu , Cazabet Remy

Reducing financial risk is of paramount importance to investors, financial institutions, and corporations. Since the pioneering contribution of Johnson (1960), the optimal hedge ratio based on futures is regularly utilized. The current…

Risk Management · Quantitative Finance 2024-08-02 Abdulnasser Hatemi-J

Blockchain systems are designed to produce blocks at a constant average rate. The most popular systems currently employ a Proof of Work (PoW) algorithm as a means of creating these blocks. Bitcoin produces, on average, one block every 10…

Cryptography and Security · Computer Science 2019-08-15 George Bissias , Brian Neil Levine

Redundancy for straggler mitigation, originally in data download and more recently in distributed computing context, has been shown to be effective both in theory and practice. Analysis of systems with redundancy has drawn significant…

Performance · Computer Science 2017-10-03 Mehmet Fatih Aktas , Pei Peng , Emina Soljanin

Transaction fee mechanism design is a new decentralized mechanism design problem where users bid for space on the blockchain. Several recent works showed that the transaction fee mechanism design fundamentally departs from classical…

Computer Science and Game Theory · Computer Science 2024-04-23 Ke Wu , Elaine Shi , Hao Chung

The Lightning Network is a so-called second-layer technology built on top of the Bitcoin blockchain to provide "off-chain" fast payment channels between users, which means that not all transactions are settled and stored on the main…

Computers and Society · Computer Science 2019-12-10 Silvia Bartolucci , Fabio Caccioli , Pierpaolo Vivo

Following the publication of Bitcoin's arguably most famous attack, selfish mining, various works have introduced mechanisms to enhance blockchain systems' game theoretic resilience. Some reward mechanisms, like FruitChains, have been shown…

Computer Science and Game Theory · Computer Science 2025-03-14 Lukas Aumayr , Zeta Avarikioti , Dimitris Karakostas , Karl Kreder , Shreekara Shastry

Hacks are one of the most damaging types of cryptocurrency related crime, accounting for billions of dollars in stolen funds since 2009. Professional investigators at Chainalysis have traced these stolen funds from the initial breach on an…

Physics and Society · Physics 2019-10-30 Daniel Goldsmith , Kim Grauer , Yonah Shmalo

A blockchain, such as Bitcoin, is an append-only, secure, transparent, distributed ledger. A fair blockchain is expected to have healthy metrics; high honest mining power, low processing latency, i.e., low wait times for transactions and…

Cryptography and Security · Computer Science 2020-03-03 Shoeb Siddiqui , Ganesh Vanahalli , Sujit Gujar

Using data from a live trading experiment on the Binance Bitcoin perpetual, we examine the effects of (i) basic order book mechanics and (ii) the persistence of price changes from immediate to short timescales, revealing the interplay…

Trading and Market Microstructure · Quantitative Finance 2025-11-25 Jakob Albers , Mihai Cucuringu , Sam Howison , Alexander Y. Shestopaloff

We analyze Qubic's publicly claimed selfish mining attack against Monero in 2025. By combining measurements from Monero nodes, the Qubic pool API, and Qubic-network observations, we reconstruct Qubic-attributed blocks and effective hashrate…

Cryptography and Security · Computer Science 2026-02-03 Suhyeon Lee , Hyeongyeong Kim

With the proliferation of new blockchain-based cryptocurrencies/assets and platforms that make it possible to transact across them, it becomes important to consider not just whether the transfer of coins/assets can be tracked within their…

Cryptography and Security · Computer Science 2025-10-14 Ayush Kumar , Vrizlynn L. L. Thing

We consider the hedging problem where a futures position can be automatically liquidated by the exchange without notice. We derive a semi-closed form for an optimal hedging strategy with dual objectives - to minimise both the variance of…

Risk Management · Quantitative Finance 2021-08-11 Carol Alexander , Jun Deng , Bin Zou

In Proof-of-Work blockchains, difficulty algorithms serve the crucial purpose of maintaining a stable transaction throughput by dynamically adjusting the block difficulty in response to the miners' constantly changing computational power.…

Cryptography and Security · Computer Science 2021-05-03 Dragos I. Ilie , Sam M. Werner , Iain Stewart , William J. Knottenbelt

Cryptocurrency mining in the browser has the potential to provide a new pay-as-you-go monetisation mechanism for consuming digital media over the Web. However, browser mining has recently received strong criticism due to illegitimate use of…

Cryptography and Security · Computer Science 2019-01-07 Saulius Venskutonis , Feng Hao , Matthew Collison

Cryptocurrencies such as Bitcoin are realized using distributed systems and hence critically rely on the performance and security of the interconnecting network. The requirements on these networks and their usage, however can differ…

Networking and Internet Architecture · Computer Science 2020-08-20 Maya Dotan , Yvonne-Anne Pignolet , Stefan Schmid , Saar Tochner , Aviv Zohar
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