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This study examines the weak form of the efficient market hypothesis for Bitcoin using a feedforward neural network. Due to the increasing popularity of cryptocurrencies in recent years, the question has arisen, as to whether market…

Statistical Finance · Quantitative Finance 2022-08-16 Mike Kraehenbuehl , Joerg Osterrieder

Bitcoin is the first implementation of what has become known as a 'public permissionless' blockchain. Guaranteeing security and protocol conformity through its elegant combination of cryptographic assurances and game theoretic economic…

Cryptography and Security · Computer Science 2018-02-23 D. McGinn , D McIlwraith , Y. Guo

Grover's algorithm confers on quantum computers a quadratic advantage over classical computers for searching in an arbitrary data set, a scenario that describes Bitcoin mining. It has previously been argued that the only side-effect of…

Quantum Physics · Physics 2020-03-17 Or Sattath

We present here new mechanisms for hashing data via binary embeddings. Contrary to most of the techniques presented before, the embedding matrix of our mechanism is highly structured. That enables us to perform hashing more efficiently and…

Data Structures and Algorithms · Computer Science 2015-05-14 Krzysztof Choromanski

Understanding the strategic behavior of miners in a blockchain is of great importance for its proper operation. A common model for mining games considers an infinite time horizon, with players optimizing asymptotic average objectives.…

Computer Science and Game Theory · Computer Science 2021-07-21 Alejandro Jofré , Angel Pardo , David Salas , Victor Verdugo , José Verschae

In this paper, we consider a variety of multi-state Hidden Markov models for predicting and explaining the Bitcoin, Ether and Ripple returns in the presence of state (regime) dynamics. In addition, we examine the effects of several…

Applications · Statistics 2020-12-08 Constandina Koki , Stefanos Leonardos , Georgios Piliouras

This work proposes a novel proof-of-work blockchain incentive scheme such that, barring exogenous motivations, following the protocol is guaranteed to be the optimal strategy for miners. Our blockchain takes the form of a directed acyclic…

Cryptography and Security · Computer Science 2022-06-22 Jakub Sliwinski , Roger Wattenhofer

Bitcoin is the most secure blockchain in the world, supported by the immense hash power of its Proof-of-Work miners. Proof-of-Stake chains are energy-efficient, have fast finality but face several security issues: susceptibility to…

Cryptography and Security · Computer Science 2025-02-04 Ertem Nusret Tas , David Tse , Fangyu Gai , Sreeram Kannan , Mohammad Ali Maddah-Ali , Fisher Yu

We analyze Bitcoin mining from the perspective of a game and propose an optimal mining model that maximizes profits of pools and miners. The model is a two-stage Stackelberg game in which each stage forms a sub-game. In stage I, pools are…

Computer Science and Game Theory · Computer Science 2021-07-22 David Lajeunesse , Hugo D. Scolnik

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

The correctness of most randomized distributed algorithms is expressed by a statement of the form ``some predicate of the executions holds with high probability, regardless of the order in which actions are scheduled''. In this paper, we…

Combinatorics · Mathematics 2008-11-23 Isaac Saias

The Holy Grail of a decentralised stablecoin is achieved on rigorous mathematical frameworks, obtaining multiple advantageous proofs: stability, convergence, truthfulness, faithfulness, and malicious-security. These properties could only be…

Cryptography and Security · Computer Science 2019-09-18 David Cerezo Sánchez

Blockchain systems often employ proof-of-work consensus protocols to validate and add transactions into hashchains. These protocols stimulate competition among miners in solving cryptopuzzles (e.g. SHA-256 hash computation in Bitcoin) in…

Computer Science and Game Theory · Computer Science 2020-05-13 Venkata Sriram Siddhardh Nadendla , Lav R. Varshney

We show Bitcoin implied volatility on a 5 minute time horizon is modestly predictable from price, volatility momentum and alternative data including sentiment and engagement. Lagged Bitcoin index price and volatility movements contribute to…

Statistical Finance · Quantitative Finance 2020-10-30 Faizaan Pervaiz , Christopher Goh , Ashley Pennington , Samuel Holt , James West , Shaun Ng

Lower bounds and impossibility results in distributed computing are both intellectually challenging and practically important. Hundreds if not thousands of proofs appear in the literature, but surprisingly, the vast majority of them apply…

Distributed, Parallel, and Cluster Computing · Computer Science 2021-10-13 Guy Goren , Yoram Moses , Alexander Spiegelman

Proof-of-Stake consensus protocols give rise to complex modeling challenges. We analyze the recently-updated Tezos Proof-of-Stake protocol and demonstrate that, under certain conditions, rational participants are incentivized to behave…

Cryptography and Security · Computer Science 2020-04-09 Michael Neuder , Daniel J. Moroz , Rithvik Rao , David C. Parkes

An open distributed system can be secured by requiring participants to present proof of work and rewarding them for participation. The Bitcoin digital currency introduced this mechanism, which is adopted by almost all contemporary digital…

Cryptography and Security · Computer Science 2014-12-01 Ittay Eyal

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

Our aim in this paper is to investigate the profitability of double-spending (DS) attacks that manipulate an a priori mined transaction in a blockchain. It was well understood that a successful DS attack is established when the proportion…

Cryptography and Security · Computer Science 2020-10-15 Jehyuk Jang , Heung-No Lee

Bitcoin-NG is among the first blockchain protocols to approach the \emph{near-optimal} throughput by decoupling blockchain operation into two planes: leader election and transaction serialization. Its decoupling idea has inspired a new…

Cryptography and Security · Computer Science 2020-10-06 Jianyu Niu , Ziyu Wang , Fangyu Gai , Chen Feng
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