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Performance and scalability are major concerns for blockchains: permissionless systems are typically limited by slow proof of X consensus algorithms and sequential post-order transaction execution on every node of the network. By…

Distributed, Parallel, and Cluster Computing · Computer Science 2020-03-11 Christian Gorenflo , Lukasz Golab , Srinivasan Keshav

Maximal extractable value (MEV) in which block proposers unethically gain profits by manipulating the order in which transactions are included within a block, is a key challenge facing blockchains such as Ethereum today. Left unchecked, MEV…

Cryptography and Security · Computer Science 2024-05-16 Yifan Mao , Mengya Zhang , Shaileshh Bojja Venkatakrishnan , Zhiqiang Lin

We develop a model of coordination and allocation of decentralized multi-sided markets, in which our theoretical analysis is promisingly optimizing the decentralized transaction packaging process at high-throughput blockchains or Web 3.0…

General Economics · Economics 2023-01-27 Yuxuan Lu , Qian Qi , Xi Chen

This paper presents the first comprehensive analysis of an emerging cryptocurrency scam named "arbitrage bot" disseminated on online social networks. The scam revolves around Decentralized Exchanges (DEX) arbitrage and aims to lure victims…

Cryptography and Security · Computer Science 2023-10-20 Kai Li , Shixuan Guan , Darren Lee

The successive generations of consensus algorithms have progressively shifted the performance bottleneck of blockchains to the execution layer. While recent works address this by parallelizing transaction execution, they often overlook the…

Distributed, Parallel, and Cluster Computing · Computer Science 2026-04-28 Artjom Pugatsov , Can Umut Ileri , Jérémie Decouchant

In the given technology-driven era, smart cities are the next frontier of technology, aiming at improving the quality of people's lives. Many research works focus on future smart cities with a holistic approach towards smart city…

Cryptography and Security · Computer Science 2021-07-22 S. Valli Sanghami , John J. Lee , Qin Hu

The rise of Ethereum and other blockchains that support smart contracts has led to the creation of decentralized exchanges (DEXs), such as Uniswap, Balancer, Curve, mStable, and SushiSwap, which enable agents to trade cryptocurrencies…

Optimization and Control · Mathematics 2021-07-28 Guillermo Angeris , Akshay Agrawal , Alex Evans , Tarun Chitra , Stephen Boyd

Traditional public blockchain systems typically had very limited transaction throughput because of the bottleneck of the consensus protocol itself. With recent advances in consensus technology, the performance limit has been greatly lifted,…

Distributed, Parallel, and Cluster Computing · Computer Science 2022-02-11 Péter Garamvölgyi , Yuxi Liu , Dong Zhou , Fan Long , Ming Wu

Blockchain technology has revolutionized financial markets by enabling decentralized exchanges (DEXs) that operate without intermediaries. Uniswap V2, a leading DEX, facilitates the rapid creation and trading of new tokens, which offer high…

Computational Finance · Quantitative Finance 2026-02-18 Manuel Naviglio , Francesco Tarantelli , Fabrizio Lillo

Blockchain's economic value lies in enabling financial and economic transactions without relying on trusted, centralized intermediaries. In practice, however, transactions pass through a fragmented chain of intermediaries before being…

General Economics · Economics 2026-05-05 Andrea Canidio , Vabuk Pahari

We describe a plausible probabilistic model for a blockchain queueing environment in which rational, profit-maximising schedulers impose adversarial disciplines on incoming messages containing a payload that encodes a state transition in a…

Probability · Mathematics 2023-02-17 Andrew W. Macpherson

The advent of decentralized trading markets introduces a number of new challenges for consensus protocols. In addition to the `usual' attacks -- a subset of the validators trying to prevent disagreement -- there is now the possibility of…

Cryptography and Security · Computer Science 2020-07-17 Klaus Kursawe

The prevalence of maximal extractable value (MEV) in the Ethereum ecosystem has led to a characterization of the latter as a dark forest. Studies of MEV have thus far largely been restricted to purely on-chain MEV, i.e., sandwich attacks,…

Computational Engineering, Finance, and Science · Computer Science 2024-04-09 Lioba Heimbach , Vabuk Pahari , Eric Schertenleib

We consider front-running to be a course of action where an entity benefits from prior access to privileged market information about upcoming transactions and trades. Front-running has been an issue in financial instrument markets since the…

Cryptography and Security · Computer Science 2019-04-11 Shayan Eskandari , Seyedehmahsa Moosavi , Jeremy Clark

Ethereum prospered the inception of a plethora of smart contract applications, ranging from gambling games to decentralized finance. However, Ethereum is also considered a highly adversarial environment, where vulnerable smart contracts…

Cryptography and Security · Computer Science 2021-06-04 Christof Ferreira Torres , Ramiro Camino , Radu State

The rapid growth of decentralized finance (DeFi) has led to the widespread use of automated agents, or bots, within blockchain ecosystems like Ethereum, Binance Smart Chain, and Solana. While these bots enhance market efficiency and…

Cryptography and Security · Computer Science 2025-01-22 Ahmed Mounsf Rafik Bendada , Abdelaziz Amara Korba , Mouhamed Amine Bouchiha , Yacine Ghamri-Doudane

In this paper, we analyze traders' behavior within both centralized exchanges (CEXs) and decentralized exchanges (DEXs), focusing on the volatility of Bitcoin prices and the trading activity of investors engaged in perpetual future…

Trading and Market Microstructure · Quantitative Finance 2024-04-26 Erdong Chen , Mengzhong Ma , Zixin Nie

Sharding is a prominent technique for scaling blockchains. By dividing the network into smaller components known as shards, a sharded blockchain can process transactions in parallel without introducing inconsistencies through the…

Cryptography and Security · Computer Science 2023-09-12 Jianting Zhang , Wuhui Chen , Sifu Luo , Tiantian Gong , Zicong Hong , Aniket Kate

Transactions submitted through the blockchain peer-to-peer (P2P) network may leak out exploitable information. We study the economic incentives behind the adoption of blockchain dark venues, where users' transactions are observable only by…

General Finance · Quantitative Finance 2022-02-14 Agostino Capponi , Ruizhe Jia , Ye Wang

As a fundamental technology of decentralized finance (DeFi), blockchain's ability to maintain a distributed fair ledger is threatened by manipulation of block/transaction order. In this paper, we propose a frontrunning block attack against…

Cryptography and Security · Computer Science 2022-05-23 Xinrui Zhang , Qin Wang , Rujia Li , Qi Wang