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We study to what extent the Bitcoin blockchain security permanently depends on the underlying distribution of cryptocurrency market outcomes. We use daily blockchain and Bitcoin data for 2014-2019 and employ the ARDL approach. We test three…

General Economics · Economics 2021-02-18 Pavel Ciaian , d'Artis Kancs , Miroslava Rajcaniova

We identify a subtle security issue that impacts the design of smart contracts, because agents may themselves deploy smart contracts (side contracts). Typically, equilibria of games are analyzed in vitro, under the assumption that players…

Computer Science and Game Theory · Computer Science 2023-05-05 Daji Landis , Nikolaj I. Schwartzbach

In the last few years several papers investigated selfish mine attacks, most of which assumed that every miner that is not part of the selfish mine pool will continue to mine honestly. However, in reality, remaining honest is not always…

Cryptography and Security · Computer Science 2025-05-14 Jonathan Gal , Maytal B Szabo , Ori Rottenstreich

In Proof-of-Work blockchains, difficulty algorithms serve the crucial purpose of maintaining a stable transaction throughput by dynamically adjusting the block difficulty in response to the miners' constantly changing computational power.…

Cryptography and Security · Computer Science 2021-05-03 Dragos I. Ilie , Sam M. Werner , Iain Stewart , William J. Knottenbelt

In the Bitcoin system, participants are rewarded for solving cryptographic puzzles. In order to receive more consistent rewards over time, some participants organize mining pools and split the rewards from the pool in proportion to each…

Cryptography and Security · Computer Science 2023-09-14 Yujin Kwon , Dohyun Kim , Yunmok Son , Eugene Vasserman , Yongdae Kim

In a Proof-of-Work blockchain such as Bitcoin mining hashrate is increasing in the block reward. An increase in hashrate reduces network vulnerability to attack (a reduction in security cost) while increasing carbon emissions and…

Cryptography and Security · Computer Science 2025-08-25 Daniel Aronoff

Validators in permissionless, large-scale blockchains, such as Ethereum, are typically payoff-maximizing, rational actors. Ethereum relies on in-protocol incentives, like rewards for correct and timely votes, to induce honest behavior and…

Cryptography and Security · Computer Science 2025-05-06 Roozbeh Sarenche , Ertem Nusret Tas , Barnabe Monnot , Caspar Schwarz-Schilling , Bart Preneel

Proof-of-Work (PoW) consensus is traditionally analyzed under the assumption that all miners incur similar costs per unit of computational effort. In reality, costs vary due to factors such as regional electricity cost differences and…

Computer Science and Game Theory · Computer Science 2025-05-29 Yogev Bar-On , Ilan Komargodski , Omri Weinstein

Proof-of-work blockchains need to be carefully designed so as to create the proper incentives for miners to faithfully maintain the network in a sustainable way. This paper describes how the economic engineering of the Conflux Network, a…

General Economics · Economics 2020-04-29 Yuxi Cai , Fan Long , Andreas Park , Andreas Veneris

We investigate the instantaneous and limiting behavior of an n-node blockchain which is under continuous monitoring of the IT department of a company but faces non-stop cyber attacks from a single hacker. The blockchain is functional as far…

Cryptography and Security · Computer Science 2022-06-15 Xiufeng Xu , Liang Hong

Forks in the Bitcoin network result from the natural competition in the blockchain's Proof-of-Work consensus protocol. Their frequency is a critical indicator for the efficiency of a distributed ledger as they can contribute to resource…

Distributed, Parallel, and Cluster Computing · Computer Science 2024-11-18 Paolo Barucca , Carlo Campajola , Jiahua Xu

Blockchain is rapidly emerging as an important class of network application, with a unique set of trust, security and transparency properties. In a blockchain system, participants record and update the `server-side' state of an application…

Networking and Internet Architecture · Computer Science 2022-05-24 Yifan Mao , Shaileshh Bojja Venkatakrishnan

Proof-of-Work (PoW) is the most widely adopted incentive model in current blockchain systems, which unfortunately is energy inefficient. Proof-of-Stake (PoS) is then proposed to tackle the energy issue. The rich-get-richer concern of PoS…

Cryptography and Security · Computer Science 2021-03-31 Yuming Huang , Jing Tang , Qianhao Cong , Andrew Lim , Jianliang Xu

Researchers have discovered a series of theoretical attacks against Bitcoin's Nakamoto consensus; the most damaging ones are selfish mining, double-spending, and consistency delay attacks. These attacks have one common cause: block…

Cryptography and Security · Computer Science 2023-12-04 Jianyu Niu , Fangyu Gai , Runchao Han , Ren Zhang , Yinqian Zhang , Chen Feng

It has been known for some time that the Nakamoto consensus as implemented in the Bitcoin protocol is not totally aligned with the individual interests of the participants. More precisely, it has been shown that block withholding mining…

Cryptography and Security · Computer Science 2025-02-07 Cyril Grunspan , Ricardo Perez-Marco

We consider a resource allocation problem where individual users wish to send data across a network to maximize their utility, and a cost is incurred at each link that depends on the total rate sent through the link. It is known that as…

Computer Science and Game Theory · Computer Science 2007-05-23 Ramesh Johari , Shie Mannor , John N. Tsitsiklis

In the context of the `selfish-mine' strategy proposed by Eyal and Sirer, we study the effect of propagation delay on the evolution of the Bitcoin blockchain. First, we use a simplified Markov model that tracks the contrasting states of…

Cryptography and Security · Computer Science 2015-05-22 Johannes Göbel , Paul Keeler , Anthony E. Krzesinski , Peter G. Taylor

While cryptocurrencies and blockchain applications continue to gain popularity, their energy cost is evidently becoming unsustainable. In most instances, the main cost comes from the required amount of energy for the Proof-of-Work, and this…

Cryptography and Security · Computer Science 2019-08-20 Philippe Jacquet , Bernard Mans

In this paper, we systematically explore the attack surface of the Blockchain technology, with an emphasis on public Blockchains. Towards this goal, we attribute attack viability in the attack surface to 1) the Blockchain cryptographic…

Cryptography and Security · Computer Science 2019-04-09 Muhammad Saad , Jeffrey Spaulding , Laurent Njilla , Charles Kamhoua , Sachin Shetty , DaeHun Nyang , Aziz Mohaisen

A principal vulnerability of a proof-of-work ("PoW") blockchain is that an attacker can re-write the history of transactions by forking a previously published block and build a new chain segment containing a different sequence of…

Cryptography and Security · Computer Science 2023-09-27 Daniel Aronoff , Isaac Ardis
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