Related papers: Why Stake When You Can Borrow?
The distributed consensus mechanism is the backbone of the rapidly developing blockchain network. Blockchain platforms consume vast amounts of electricity based on the current consensus mechanism of Proof of Work. Here, we point out an…
From biotechnology to cyber-risks, most extreme technological risks cannot be reliably estimated from historical statistics. Therefore, engineers resort to predictive methods, such as fault/event trees in the framework of probabilistic…
Smart contracts are distributed, self-enforcing programs executing on top of blockchain networks. They have the potential to revolutionize many industries such as financial institutes and supply chains. However, smart contracts are subject…
Scam contracts on Ethereum have rapidly evolved alongside the rise of DeFi and NFT ecosystems, utilizing increasingly complex code obfuscation techniques to avoid early detection. This paper systematically investigates how obfuscation…
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,…
An important feature of Proof-of-Work (PoW) blockchains is full dynamic availability, allowing miners to go online and offline while requiring only 50% of the online miners to be honest. Existing Proof-of-stake (PoS), Proof-of-Space and…
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…
Cryptocurrency exchanges use proofs of liabilities (PoLs) to prove to their customers their liabilities committed on-chain, thereby enhancing their trust in the service. Unfortunately, a close examination of currently deployed and academic…
This work proposes an augmented variant of DebtRank with uncertainty intervals as a method to investigate and assess systemic risk in financial networks, in a context of incomplete data. The algorithm is tested against a default contagion…
Popular distributed ledger technology (DLT) systems using proof-of-work (PoW) for Sybil attack resistance have extreme energy requirements, drawing stern criticism from academia, businesses, and the media. DLT systems building on…
Proof-of-Work (PoW) is a popular blockchain consensus algorithm that is used in cryptocurrencies like Bitcoin in which hashing operations are repeated until the resulting hash has certain properties. This approach uses lots of computational…
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…
This paper presents an empirical evaluation of the Proof of Team Sprint (PoTS) consensus algorithm, focusing on reward fairness, energy efficiency, system stability, and scalability. We conducted large-scale simulations comparing PoTS with…
With the advent of blockchain technologies, the idea of decentralized applications has gained traction. Smart contracts permit the implementation of application logic to foster distributed systems that are capable of removing…
The NFT ecosystem represents an interconnected, decentralized environment that encompasses the creation, distribution, and trading of Non-Fungible Tokens (NFTs), where key actors, such as marketplaces, sellers, and buyers, utilize smart…
We consider a financial network represented at any time instance by a random liability graph which evolves over time. The agents connect through credit instruments borrowed from each other or through direct lending, and these create the…
Blockchain has become particularly popular due to its promise to support business-critical services in very different domains (e.g., retail, supply chains, healthcare). Blockchain systems rely on complex middleware, like Ethereum or…
Proof of Authority (PoA) is a type of permissioned consensus algorithm with a fixed committee. PoA has been widely adopted by communities and industries due to its better performance and faster finality. In this paper, we explore the…
Blokchain is a promising technology to enable distributed and reliable data sharing at the network edge. The high security in blockchain is undoubtedly a critical factor for the network to handle important data item. On the other hand,…
Decentralized finance (DeFi) borrowing and lending platforms are crucial to the decentralized economy, involving two main participants: lenders who provide assets for interest and borrowers who offer collateral exceeding their debt and pay…