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Bitcoin is the first successful decentralized global digital cash system. Its mining process requires intense computational resources, therefore its usefulness remains a disputable topic. We aim to solve three problems with Bitcoin and…

Cryptography and Security · Computer Science 2016-08-25 Alexander Chepurnoy , Mario Larangeira , Alexander Ojiganov

Owing to Satoshi Nakamoto's brilliant idea, a P2P public ledger is shown to be implementable in anonymous network. Any Internet user can then join the anonymous network and contribute to the P2P public ledger by providing their computing…

Cryptography and Security · Computer Science 2018-07-02 DaeHun Nyang

Blockchain (BC), the technology behind the Bitcoin crypto-currency system, is considered to be both alluring and critical for ensuring enhanced security and (in some implementations, non-traceable) privacy for diverse applications in many…

Cryptography and Security · Computer Science 2018-12-14 Mahdi H. Miraz , Maaruf Ali

We present three very simple variants of the classic Heads or Tails game using chips, each of which contributes to our understanding of the Bitcoin protocol. The first variant addresses the issue of temporary Bitcoin forks, which occur when…

Cryptography and Security · Computer Science 2024-05-08 Cyril Grunspan , Ricardo Perez-Marco

This discussion applies quantitative finance methods and economic arguments to cryptocurrencies in general and bitcoin in particular -- as there are about $10,000$ cryptocurrencies, we focus (unless otherwise specified) on the most…

General Economics · Economics 2021-07-06 Nassim Nicholas Taleb

Distributed ledgers are common in the industry. Some of them can use blockchains as their underlying infrastructure. A blockchain requires participants to agree on its contents. This can be achieved via a consensus protocol, and several BFT…

Performance · Computer Science 2024-11-13 J. D. Chan , Y. C. Tay , Brian R. Z. Yen

Bitcoins and Blockchain technologies are attracting the attention of different scientific communities. In addition, their widespread industrial applications and the continuous introduction of cryptocurrencies are also stimulating the…

Physics and Society · Physics 2018-07-24 Marco Alberto Javarone , Craig Steven Wright

Bitcoin has become the leading cryptocurrency system, but the limit on its transaction processing capacity has resulted in increased transaction fees and delayed transaction confirmation. As such, it is pertinent to understand and probably…

Cryptography and Security · Computer Science 2021-06-21 Befekadu G. Gebraselase , Bjarne E. Helvik , Yuming Jiang

Bitcoin demonstrated the possibility of a financial ledger that operates without the need for a trusted central authority. However, concerns persist regarding its security and considerable energy consumption. We assess the consensus…

Computer Science and Game Theory · Computer Science 2025-03-04 Jacob D. Leshno , Elaine Shi , Rafael Pass

Blockchain has received great attention in recent years and motivated innovations in different scenarios. However, many vital issues which affect its performance are still open. For example, it is widely convinced that high level of…

Networking and Internet Architecture · Computer Science 2018-09-06 Zhenzhen Jiao , Rui Tian , Dezhong Shang , Hui Ding

We study the incentives behind double-spend attacks on Nakamoto-style Proof-of-Work cryptocurrencies. In these systems, miners are allowed to choose which transactions to reference with their block, and a common strategy for selecting…

Computer Science and Game Theory · Computer Science 2023-12-14 Yanni Georghiades , Rajesh Mishra , Karl Kreder , Sriram Vishwanath

The blockchain data structure maintained via the longest-chain rule---popularized by Bitcoin---is a powerful algorithmic tool for consensus algorithms. Such algorithms achieve consistency for blocks in the chain as a function of their depth…

Cryptography and Security · Computer Science 2019-11-25 Erica Blum , Aggelos Kiayias , Cristopher Moore , Saad Quader , Alexander Russell

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

Transaction throughput, confirmation latency and confirmation reliability are fundamental performance measures of any blockchain system in addition to its security. In a decentralized setting, these measures are limited by two underlying…

Cryptography and Security · Computer Science 2019-10-03 Vivek Bagaria , Sreeram Kannan , David Tse , Giulia Fanti , Pramod Viswanath

Authorization is challenging in distributed systems that cannot rely on the identification of nodes. Proof-of-work offers an alternative gate-keeping mechanism, but its probabilistic nature is incompatible with conventional security…

Cryptography and Security · Computer Science 2022-09-20 Patrik Keller , Rainer Böhme

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

We correct the double spend race analysis given in Nakamoto's foundational Bitcoin article and give a closed-form formula for the probability of success of a double spend attack using the Regularized Incomplete Beta Function. We give a…

Cryptography and Security · Computer Science 2020-05-07 Cyril Grunspan , Ricardo Pérez-Marco

This paper develops a model to evaluate the viability of blockchain markets as the sole venue for price formation. Blockchains clear at discrete intervals called block time, and transactions are executed sequentially according to priority…

General Finance · Quantitative Finance 2026-05-19 Agostino Capponi , Álvaro Cartea , Fayçal Drissi

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

Selfish mining, which is an attack on the integrity of the Bitcoin network, was first proposed by Cornell researchers Emin Gun Sirer and Ittay Eyal in 2013. Selfish mining attack also exists in most Nakamoto consensus protocols. Generally…

Networking and Internet Architecture · Computer Science 2018-09-18 Rui Tian , Wei Gong