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Related papers: Incentives in Ethereum's Hybrid Casper Protocol

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Consider a set of parties invited to execute a protocol $\Pi$. The protocol will incur some cost to run while in the end (or at regular intervals), it will populate and update local tables that assign (virtual) rewards to participants. Each…

Computer Science and Game Theory · Computer Science 2020-01-03 Aggelos Kiayias , Aikaterini-Panagiota Stouka

Proof-of-Work (PoW) systems face critical challenges, including excessive energy consumption and the centralization of mining power among entities with expensive hardware. Static mining pools exacerbate these issues by reducing competition…

Cryptography and Security · Computer Science 2025-04-25 Rizwanul Haque , SM Tareq Aziz , Tahrim Hossain , Faisal Haque Bappy , Muhammad Nur Yanhaona , Tariqul Islam

This paper presents a study of the Poof-of-Stake (PoW) Ethereum consensus protocol, following the recent switch from Proof-of-Work (PoS) to Proof-of-Stake within Merge upgrade. The new protocol has resulted in reduced energy consumption and…

Computer Science and Game Theory · Computer Science 2023-05-24 Benjamin Kraner , Nicolò Vallarano , Claudio J. Tessone , Caspar Schwarz-Schilling

The LMD GHOST consensus protocol is a critical component of proof-of-stake Ethereum. In its current form, this protocol is brittle, as evidenced by recent attacks and patching attempts. We propose Goldfish, a new protocol that satisfies key…

Cryptography and Security · Computer Science 2024-01-02 Francesco D'Amato , Joachim Neu , Ertem Nusret Tas , David Tse

Smart contracts are blockchain programs that often handle valuable assets. Writing secure smart contracts is far from trivial, and any vulnerability may lead to significant financial losses. To support developers in identifying and…

Cryptography and Security · Computer Science 2023-06-09 Monika di Angelo , Thomas Durieux , João F. Ferreira , Gernot Salzer

Blockchain is a decentralized, distributed ledger technology that ensures transparency, security, and immutability through cryptographic techniques. However, advancements in quantum computing threaten the security of classical cryptographic…

Cryptography and Security · Computer Science 2026-01-14 Nicholas J. C. Papadopoulos

We study a mechanism design problem in the blockchain proof-of-stake (PoS) protocol. Our main objective is to extend the transaction fee mechanism (TFM) recently proposed in Chung and Shi (SODA, p.3856-3899, 2023), so as to incorporate a…

Computer Science and Game Theory · Computer Science 2023-08-30 Wenpin Tang , David D. Yao

Does the proof-of-work protocol serve its intended purpose of supporting decentralized cryptocurrency mining? To address this question, we develop a game-theoretical model where miners first invest in hardware to improve the efficiency of…

Trading and Market Microstructure · Quantitative Finance 2021-06-21 Agostino Capponi , Sveinn Olafsson , Humoud Alsabah

Client diversity is a cornerstone of blockchain resilience, yet most networks suffer from a dangerously skewed distribution of client implementations. This monoculture exposes the network to very risky scenarios, such as massive financial…

Software Engineering · Computer Science 2025-10-27 Javier Ron , Zheyuan He , Martin Monperrus

The rise of cryptocurrencies like Bitcoin and Ethereum has driven interest in blockchain database technology, with smart contracts enabling the growth of decentralized finance (DeFi). However, research has shown that adversaries exploit…

Databases · Computer Science 2026-01-30 Dakai Kang , Junchao Chen , Tien Tuan Anh Dinh , Mohammad Sadoghi

Consensus algorithms facilitate agreement on and resolution of blockchain functions, such as smart contracts and transactions. Ethereum uses a Proof-of-Stake (PoS) consensus mechanism, which depends on financial incentives to ensure that…

Computer Science and Game Theory · Computer Science 2023-08-02 Alpesh Bhudia , Anna Cartwright , Edward Cartwright , Darren Hurley-Smith , Julio Hernandez-Castro

Gasper, the consensus protocol currently employed by Ethereum, typically requires 64 to 95 slots -- the units of time during which a new chain extending the previous one by one block is proposed and voted -- to finalize. This means that…

Distributed, Parallel, and Cluster Computing · Computer Science 2024-11-04 Francesco D'Amato , Roberto Saltini , Thanh-Hai Tran , Luca Zanolini

Tendermint-core blockchains (e.g. Cosmos) are considered today one of the most viable alternatives for the highly energy consuming proof-of-work blockchains such as Bitcoin and Ethereum. Their particularity is that they aim at offering…

Distributed, Parallel, and Cluster Computing · Computer Science 2018-12-14 Yackolley Amoussou-Guenou , Antonella Del Pozzo , Maria Potop-Butucaru , Sara Tucci-Piergiovanni

This paper presents a novel staking coopetition design aimed at incentivizing decentralization and continuous growth of economic security within a proof-of-stake system. Staking rewards follow a nonlinear mapping relative to stake size.…

Theoretical Economics · Economics 2025-05-19 Michael D. Norman , Simon Brown , Mallesh Pai , Laurence Smith

Bitcoin is a decentralised digital currency that serves as an alternative to existing transaction systems based on an external central authority for security. Although Bitcoin has many desirable properties, one of its fundamental…

Cryptography and Security · Computer Science 2019-10-07 Georgios Birmpas , Elias Koutsoupias , Philip Lazos , Francisco J. Marmolejo-Cossío

Blockchain consensus mechanisms must balance security, decentralization, and efficiency while ensuring fair participation. Proof of Team Sprint (PoTS) is a cooperative consensus mechanism designed to address the energy inefficiencies and…

Distributed, Parallel, and Cluster Computing · Computer Science 2025-03-26 Naoki Yonezawa

Regardless of their variations, blockchains require a consensus mechanism to validate transactions, supervise added blocks, maintain network security, synchronize the network state, and distribute incentives. Proof-of-Work (PoW), one of the…

Distributed, Parallel, and Cluster Computing · Computer Science 2024-07-25 Amirreza Sokhankhosh , Sara Rouhani

We propose a new Proof-of-Stake consensus protocol constructed with a verifiable random function (VRF) and a verifiable delay function (VDF) that has the following properties: a) all addresses with positive stake can participate; b) is fair…

Cryptography and Security · Computer Science 2020-10-13 José I. Orlicki

We propose DIPS Difficulty-based Incentives for Problem Solving), a simple modification of the Bitcoin proof-of-work algorithm that rewards blockchain miners for solving optimization problems of scientific interest. The result is a…

Distributed, Parallel, and Cluster Computing · Computer Science 2022-06-03 Pericles Philippopoulos , Alessandro Ricottone , Carlos G. Oliver

Proof of work (PoW), as the representative consensus protocol for blockchain, consumes enormous amounts of computation and energy to determine bookkeeping rights among miners but does not achieve any practical purposes. To address the…

Cryptography and Security · Computer Science 2022-11-01 Yuntao Wang , Haixia Peng , Zhou Su , Tom H Luan , Abderrahim Benslimane , Yuan Wu