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Decentralization has been touted as the principal security advantage which propelled blockchain systems at the forefront of developments in the financial technology space. Its exact semantics nevertheless remain highly contested and…

Cryptography and Security · Computer Science 2024-04-16 Christina Ovezik , Dimitris Karakostas , Aggelos Kiayias

This paper considers the security investment problem over a network in which the resource owners aim to allocate their constrained security resources to heterogeneous targets strategically. Investing in each target makes it less vulnerable,…

Social and Information Networks · Computer Science 2023-02-20 Jason Hughes , Juntao Chen

We study the information dynamics between the largest Bitcoin exchange markets during the bubble in 2017-2018. By analysing high-frequency market-microstructure observables with different information theoretic measures for dynamical…

Statistical Finance · Quantitative Finance 2022-05-04 Vaiva Vasiliauskaite , Fabrizio Lillo , Nino Antulov-Fantulin

Payment channel networks (PCNs) such as the Lightning Network offer an appealing solution to the scalability problem faced by many cryptocurrencies operating on a blockchain such as Bitcoin. However, PCNs also inherit the stringent…

Cryptography and Security · Computer Science 2022-01-20 Philipp Zabka , Klaus-Tycho Foerster , Stefan Schmid , Christian Decker

It is now a whole year since Lightning Network (LN) has been launched on the Bitcoi's mainnet. LN has been claimed as the solution for several of Bitcoin's weaknesses such as its difficulty to scale in number of transactions per second and…

Cryptography and Security · Computer Science 2019-02-21 Stefano Martinazzi

We prove Bitcoin is secure under temporary dishonest majority. We assume the adversary can corrupt a specific fraction of parties and also introduce crash failures, i.e., some honest participants are offline during the execution of the…

Cryptography and Security · Computer Science 2019-08-02 Georgia Avarikioti , Lukas Kaeppeli , Yuyi Wang , Roger Wattenhofer

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

Blockchains are decentralized; are they genuinely? We analyze blockchain decentralization's often-overlooked but quantifiable dimension: geospatial distribution of transaction processing. Blockchains bring with them the potential for…

Distributed, Parallel, and Cluster Computing · Computer Science 2023-05-30 Shashank Motepalli , Hans-Arno Jacobsen

The Bitcoin Lightning network is a mechanism to enable fast and inexpensive off-chain Bitcoin transactions using peer-to-peer (P2P) channels between nodes that can also be composed into a routing path. Although the resulting possible…

Networking and Internet Architecture · Computer Science 2020-06-26 Finnegan Waugh , Ralph Holz

This paper investigates whether Bittensor can be considered the Bitcoin of decentralized Artificial Intelligence by directly comparing its tokenomics, decentralization properties, consensus mechanism, and incentive structure against those…

Cryptography and Security · Computer Science 2025-07-08 Elizabeth Lui , Jiahao Sun

Random linear network coding can be used in peer-to-peer networks to increase the efficiency of content distribution and distributed storage. However, these systems are particularly susceptible to Byzantine attacks. We quantify the impact…

Networking and Internet Architecture · Computer Science 2016-11-17 MinJi Kim , Luísa Lima , Fang Zhao , Joao Barros , Muriel Medard , Ralf Koetter , Ton Kalker , Keesook Han

Bitcoin is the world's first decentralized digital currency. Its main technical innovation is the use of a blockchain and hash-based proof of work to synchronize transactions and prevent double-spending the currency. While the qualitative…

Cryptography and Security · Computer Science 2014-02-12 Meni Rosenfeld

This paper investigates whether Bitcoin can be regarded as a decentralized autonomous organization (DAO), what insights it may offer for the broader DAO ecosystem, and how Bitcoin governance can be improved. First, a quantitative literature…

Computers and Society · Computer Science 2025-04-30 Mark C. Ballandies , Guangyao Li , Claudio J. Tessone

Payment channel networks provide a fast and scalable solution to relay funds, acting as a second layer to slower and less scalable blockchain protocols. In this paper, we present an accessible, low-cost attack in which the attacker…

Cryptography and Security · Computer Science 2021-02-02 Ayelet Mizrahi , Aviv Zohar

Bitcoin operates as a macroeconomic paradox: it combines a strictly predetermined, inelastic monetary issuance schedule with a stochastic, highly elastic demand for scarce block space. This paper empirically validates the Endogenous…

Statistical Finance · Quantitative Finance 2025-12-10 Hamoon Soleimani

We analyzed the associations between Bitcoin transactions and addresses to cluster address and further find groups of addresses controlled by the same entity. It revealed the vulnerabilities of Bitcoin anonymity mechanism, which could be…

Cryptography and Security · Computer Science 2022-05-13 He Xi , He Ketai , Lin Shenwen , Yang Jinglin , Mao Hongliang

Bitcoin is one of the decentralized cryptocurrencies powered by a peer-to-peer blockchain network. Parties who trade in the bitcoin network are not required to disclose any personal information. Such property of anonymity, however,…

Cryptography and Security · Computer Science 2022-11-29 Zhengjie Huang , Yunyang Huang , Peng Qian , Jianhai Chen , Qinming He

In recent times we hear increasingly often about cyber attacks on various commercial and strategic sites that manage to escape any defense. In this article, we model such attacks on networks via stochastic processes and predict the time of…

Probability · Mathematics 2019-01-23 Jewgeni H. Dshalalow , Ryan T. White

Bitcoin provides freshness properties by forming a blockchain where each block is associated with its timestamp and the previous block. Due to these properties, the Bitcoin protocol is being used as a decentralized, trusted, and secure…

Cryptography and Security · Computer Science 2018-05-21 Pawel Szalachowski

Since its advent in 2009, Bitcoin (BTC) has garnered increasing attention from both academia and industry. However, due to the massive transaction volume, no systematic study has quantitatively measured the asset decentralization degree…

Statistical Finance · Quantitative Finance 2024-11-22 Ling Cheng , Qian Shao , Fengzhu Zeng , Feida Zhu
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