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Related papers: Incentives Don't Solve Blockchain's Problems

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Game theory is often used as a tool to analyze decentralized systems and their properties, in particular, blockchains. In this note, we take the opposite view. We argue that blockchains can and should be used to implement economic…

Computer Science and Game Theory · Computer Science 2020-10-02 Akaki Mamageishvili , Jan Christoph Schlegel

Modern blockchains guarantee that submitted transactions will be included eventually; a property formally known as liveness. But financial activity requires transactions to be included in a timely manner. Unfortunately, classical liveness…

Theoretical Economics · Economics 2023-06-27 Elijah Fox , Mallesh Pai , Max Resnick

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

Since the emergence of blockchain technology, its application in the financial market has always been an area of focus and exploration by all parties. With the characteristics of anonymity, trust, tamper-proof, etc., blockchain technology…

Statistical Finance · Quantitative Finance 2022-04-21 Ji Liu , Zheng Xu , Yanmei Zhang , Wei Dai , Hao Wu , Shiping Chen

Machine learning has recently enabled large advances in artificial intelligence, but these tend to be highly centralized. The large datasets required are generally proprietary; predictions are often sold on a per-query basis; and published…

Cryptography and Security · Computer Science 2019-07-18 Justin D. Harris , Bo Waggoner

The security of blockchain systems based on Proof of Work relies on mining. However, mining suffers from unstable revenue, prompting many miners to form cooperative mining pools. Most existing mining pools operate in a centralized manner,…

Cryptography and Security · Computer Science 2025-01-28 Akira Sakurai , Kazuyuki Shudo

Research in blockchain systems has mainly focused on improving security and bridging the performance gaps between blockchains and databases. Despite many promising results, we observe a worrying trend that the blockchain landscape is…

Databases · Computer Science 2019-10-23 Tien Tuan Anh Dinh , Anwitaman Datta , Beng Chin Ooi

The objective of this paper is the construction of new indicators that can be useful to operate in the cryptocurrency market. These indicators are based on public data obtained from the blockchain network, specifically from the nodes that…

Statistical Finance · Quantitative Finance 2024-03-05 Juan C. King , Roberto Dale , José M. Amigó

Blockchain technology is an interlinked systematic chain of blocks that contains transaction history and other user data. It works under the principle of decentralized distributed digital ledger. This technology enables cryptographically…

Cryptography and Security · Computer Science 2020-12-25 AKM Bahalul Haque , Mahbubur Rahman

Proof-of-Work mining is intended to provide blockchains with robustness against double-spend attacks. However, an economic analysis that follows from Budish (2018), which considers free entry conditions together with the ability to rent…

Cryptography and Security · Computer Science 2020-02-26 Daniel J. Moroz , Daniel J. Aronoff , Neha Narula , David C. Parkes

In recent years, blockchain technology has received unparalleled attention from academia, industry, and governments all around the world. It is considered a technological breakthrough anticipated to disrupt several application domains. This…

Distributed, Parallel, and Cluster Computing · Computer Science 2020-02-10 Md Sadek Ferdous , Mohammad Jabed Morshed Chowdhury , Mohammad A. Hoque , Alan Colman

We study long-term equilibria that arise in the token monetary policy, or tokenomics, design of proof-of-stake (PoS) blockchain systems that engage utility maximizing users and validators. Validators are system maintainers who get rewarded…

Computer Science and Game Theory · Computer Science 2025-02-13 Aggelos Kiayias , Philip Lazos , Paolo Penna

Proof-of-stake (PoS) is a promising approach for designing efficient blockchains, where block proposers are randomly chosen with probability proportional to their stake. A primary concern with PoS systems is the "rich getting richer"…

Cryptography and Security · Computer Science 2018-10-17 Giulia Fanti , Leonid Kogan , Sewoong Oh , Kathleen Ruan , Pramod Viswanath , Gerui Wang

Blockchains have sparked global interest in recent years, gaining importance as they increasingly influence technology and finance. This thesis investigates the robustness of blockchain protocols, specifically focusing on Ethereum…

Cryptography and Security · Computer Science 2024-12-02 Ulysse Pavloff

Blockchain is a distributed ledger, which is protected against malicious modifications by means of cryptographic tools, e.g. digital signatures and hash functions. One of the most prominent applications of blockchains is cryptocurrencies,…

Cryptography and Security · Computer Science 2019-12-20 E. O. Kiktenko , M. A. Kudinov , A. K. Fedorov

This paper proposes a conceptual framework for the analysis of reward sharing schemes in mining pools, such as those associated with Bitcoin. The framework is centered around the reported shares in a pool instead of agents and results in…

Computer Science and Game Theory · Computer Science 2021-07-13 Burak Can , Jens Leth Hougaard , Mohsen Pourpouneh

Bitcoin is a popular cryptocurrency that records alltransactions in a distributed append-only public ledger calledblockchain. The security of Bitcoin heavily relies on the incentive-compatible proof-of-work (PoW) based distributed consensus…

Cryptography and Security · Computer Science 2018-06-05 Mauro Conti , Sandeep Kumar E , Chhagan Lal , Sushmita Ruj

Blockchain protocols come with a variety of security guarantees. For example, BFT-inspired protocols such as Algorand tend to be secure in the partially synchronous setting, while longest chain protocols like Bitcoin will normally require…

Cryptography and Security · Computer Science 2021-11-08 Andrew Lewis-Pye , Tim Roughgarden

Currently, there is no universal method to track who shared what, with whom, when and for what purposes in a verifiable way to create an individual incentive for data owners. A platform that allows data owners to control, delete, and get…

Cryptography and Security · Computer Science 2025-10-29 Ajay Kumar Shrestha , Julita Vassileva

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