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In this paper, we review the undercutting attacks in the transaction-fee-based regime of proof-of-work (PoW) blockchains with the longest chain fork-choice rule. Next, we focus on the problem of fluctuations in mining revenue and the mining…

Cryptography and Security · Computer Science 2023-02-13 Rastislav Budinský , Ivan Homoliak , Ivana Stančíková

Data sharing is very important for accelerating scientific research, business innovations, and for informing individuals. Yet, concerns over data privacy, cost, and lack of secure data-sharing solutions have prevented data owners from…

Distributed, Parallel, and Cluster Computing · Computer Science 2022-04-20 Vikas Jaiman , Leonard Pernice , Visara Urovi

Bitcoin is the most successful cryptocurrency so far. This is mainly due to its novel consensus algorithm, which is based on proof-of-work combined with a cryptographically-protected data structure and a rewarding scheme that incentivizes…

Cryptography and Security · Computer Science 2019-05-24 Pawel Szalachowski , Daniel Reijsbergen , Ivan Homoliak , Siwei Sun

This paper extends the blockchain sustainability framework of Budish (2018) to consider proof of stake (in addition to proof of work) consensus mechanisms and permissioned (where the number of nodes are fixed) networks. It is demonstrated…

Cryptography and Security · Computer Science 2020-12-23 Neil Gandal , Joshua S. Gans

In the proof-of-stake (PoS) paradigm for maintaining decentralized, permissionless cryptocurrencies, Sybil attacks are prevented by basing the distribution of roles in the protocol execution on the stake distribution recorded in the ledger…

Cryptography and Security · Computer Science 2020-09-10 Rainer Stütz , Peter Gaži , Bernhard Haslhofer , Jacob Illum

Sensor networks and Wireless Sensor Networks (WSN) are key components for the development of the Internet of Things. These networks are subject of two kinds of constraints. Adaptability by the mean of mutability and evolutivity, and…

Cryptography and Security · Computer Science 2017-06-07 Axel Moinet , Benoît Darties , Jean-Luc Baril

Decentralized Autonomous Organizations (DAOs) run protocol governance by letting token holders vote on proposals. The dominant rule, voting power proportional to wallet balance, concentrates control among a small number of large holders,…

Computer Science and Game Theory · Computer Science 2026-05-20 Austin Bennett , Preston Vander Vos , Duc V. Le , Mira Belenkiy

The comparative analysis examined eleven Proof-of-Stake (PoS) consensus-based blockchain networks to assess their openness based on five indicative metrics. These metrics include those of decentralization-related aspects, such as the number…

Cryptography and Security · Computer Science 2023-05-23 Jiseong Noh , Donghwan Kwon , Soohwan Cho , Neo C. K. Yiu

We propose a proof-of-work algorithm that rewards blockchain miners for using computational resources to solve NP-complete puzzles. The resulting blockchain will publicly store and improve solutions to problems with real world applications…

Distributed, Parallel, and Cluster Computing · Computer Science 2017-09-05 Carlos G. Oliver , Alessandro Ricottone , Pericles Philippopoulos

We introduce and study reward sharing schemes (RSS) that promote the fair formation of {\em stake pools}\ in collaborative projects that involve a large number of stakeholders such as the maintenance of a proof-of-stake (PoS) blockchain.…

Computer Science and Game Theory · Computer Science 2020-06-09 Lars Brünjes , Aggelos Kiayias , Elias Koutsoupias , Aikaterini-Panagiota Stouka

Although proof of work (PoW) consensus dominates the current blockchain-based systems mostly, it has always been criticized for the uneconomic brute-force calculation. As alternatives, energy-conservation and energy-recycling mechanisms…

Cryptography and Security · Computer Science 2022-11-03 Shengling Wang , Lina Shi , Hongwei Shi , Yifang Zhang , Qin Hu , Xiuzhen Cheng

Blockchain is currently one of the fastest-growing technologies in the field of Computer Science. It has found a prevalent use in financial applications like cryptocurrency, for example, Bitcoin and Ethereum. They have been able to bring an…

Cryptography and Security · Computer Science 2021-07-30 Keenu Chandra , Maroof Mushtaq , Nalini N

Bitcoin is a decentralized crypto-currency, and an accompanying protocol, created in 2008. Bitcoin nodes continuously generate and propagate blocks---collections of newly approved transactions that are added to Bitcoin's ledger. Block…

Cryptography and Security · Computer Science 2015-07-24 Ayelet Sapirshtein , Yonatan Sompolinsky , Aviv Zohar

Mining in proof-of-work blockchains has become an expensive affair requiring specialized hardware capable of executing several megahashes per second at huge electricity costs. Miners earn a reward each time they mine a block within the…

Networking and Internet Architecture · Computer Science 2023-08-30 Arti Vedula , Abhishek Gupta , Shaileshh Bojja Venkatakrishnan

Blockchain protocols typically aspire to run in the permissionless setting, in which nodes are owned and operated by a large number of diverse and unknown entities, with each node free to start or stop running the protocol at any time. This…

Distributed, Parallel, and Cluster Computing · Computer Science 2024-03-05 Andrew Lewis-Pye , Tim Roughgarden

As smart contract platforms autonomously manage billions of dollars of capital, quantifying the portfolio risk that investors engender in these systems is increasingly important. Recent work illustrates that Proof of Stake (PoS) is…

General Finance · Quantitative Finance 2020-06-22 Tarun Chitra , Alex Evans

Lending pools are decentralized applications which allow mutually untrusted users to lend and borrow crypto-assets. These applications feature complex, highly parametric incentive mechanisms to equilibrate the loan market. This complexity…

Cryptography and Security · Computer Science 2020-12-25 Massimo Bartoletti , James Hsin-yu Chiang , Alberto Lluch-Lafuente

Trading on decentralized exchanges has been one of the primary use cases for permissionless blockchains with daily trading volume exceeding billions of U.S.~dollars. In the status quo, users broadcast transactions and miners are responsible…

Computer Science and Game Theory · Computer Science 2023-10-31 Matheus V. X. Ferreira , David C. Parkes

In a PoW-based blockchain network, mining pools (the solo miner could be regarded as a mining pool containing one miner) compete to successfully mine blocks to pursue rewards. Generally, the rewards include the fixed block subsidies and…

Computer Science and Game Theory · Computer Science 2021-10-20 Jinmian Chen , Yukun Cheng , Zhiqi Xu , Yan Cao

Blockchain consensus is a state whereby each node in a network agrees on the current state of the blockchain. Existing protocols achieve consensus via a contest or voting procedure to select one node as a dictator to propose new blocks.…

Theoretical Economics · Economics 2022-06-22 Joshua S. Gans , Richard Holden