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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

DeFi, or Decentralized Finance, is based on a distributed ledger called blockchain technology. Using blockchain, DeFi may customize the execution of predetermined operations between parties. The DeFi system use blockchain technology to…

Cryptography and Security · Computer Science 2023-04-27 Wenkai Li , Jiuyang Bu , Xiaoqi Li , Hongli Peng , Yuanzheng Niu , Yuqing Zhang

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

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

Proof-of-Work~(PoW) based blockchains typically allocate only a tiny fraction (e.g., less than 1% for Ethereum) of the average interarrival time~($\mathbb{I}$) between blocks for validating transactions. A trivial increase in validation…

Cryptography and Security · Computer Science 2021-06-03 Sourav Das , Nitin Awathare , Ling Ren , Vinay Joseph Ribeiro , Umesh Bellur

Blockchain technology enables secure, transparent data management in decentralized systems, supporting applications from cryptocurrencies like Bitcoin to tokenizing real-world assets like property. Its scalability and sustainability hinge…

Cryptography and Security · Computer Science 2025-04-25 Zan-Kai Chong , Hiroyuki Ohsaki , Bryan Ng

Rollups have become the de facto scalability solution for Ethereum, securing more than $55B in assets. They achieve scale by executing transactions on a Layer 2 ledger, while periodically posting data and finalizing state on the Layer 1,…

Cryptography and Security · Computer Science 2025-09-23 Stefanos Chaliasos , Conner Swann , Sina Pilehchiha , Nicolas Mohnblatt , Benjamin Livshits , Assimakis Kattis

We describe a plausible probabilistic model for a blockchain queueing environment in which rational, profit-maximising schedulers impose adversarial disciplines on incoming messages containing a payload that encodes a state transition in a…

Probability · Mathematics 2023-02-17 Andrew W. Macpherson

Blockchain front-running involves multiple agents, other than the legitimate agent, claiming a payment from performing a contract. It arises because of the public nature of blockchain transactions and potential network congestion. This…

Computer Science and Game Theory · Computer Science 2022-02-23 Joshua S. Gans , Richard Holden

Bitcoin uses blockchain technology to maintain transactions order and provides probabilistic guarantee to prevent double-spending, assuming that an attacker's computational power does not exceed %50 of the network power. In this paper, we…

Cryptography and Security · Computer Science 2024-11-19 Ghader Ebrahimpour , Mohammad Sayad Haghighi

The evolving landscape of Decentralized Finance (DeFi) has raised critical security concerns, especially pertaining to Protocols for Loanable Funds (PLFs) and their dependency on price oracles, which are susceptible to manipulation. The…

Cryptography and Security · Computer Science 2024-01-17 Sanidhay Arora , Yingjiu Li , Yebo Feng , Jiahua Xu

Multi-party data management and blockchain systems require data sharing among participants. To provide resilient and consistent data sharing, transactions engines rely on Byzantine FaultTolerant consensus (BFT), which enables operations…

Databases · Computer Science 2021-02-24 Suyash Gupta , Jelle Hellings , Sajjad Rahnama , Mohammad Sadoghi

We analyze bribing attacks in Proof-of-Stake distributed ledgers from a game theoretic perspective. In bribing attacks, an adversary offers participants a reward in exchange for instructing them how to behave, with the goal of attacking the…

Computer Science and Game Theory · Computer Science 2024-06-21 Dimitris Karakostas , Aggelos Kiayias , Thomas Zacharias

Proof-of-stake blockchain protocols are becoming one of the most promising alternatives to the energy-consuming proof-of-work protocols. However, one particularly critical threat in the PoS setting is the well-known long-range attacks…

Cryptography and Security · Computer Science 2019-10-16 Xinyu Li , Jing Xu , Xiong Fan , Yuchen Wang , Zhenfeng Zhang

Cross-chain interoperability is a core component of modern blockchain infrastructure, enabling seamless asset transfers and composable applications across multiple blockchain ecosystems. However, the transparency of cross-chain messages can…

Computational Engineering, Finance, and Science · Computer Science 2025-11-20 Chuanlei Li , Zhicheng Sun , Jing Xin Yuu , Xuechao Wang

The trustless nature of permissionless blockchains renders overcollateralization a key safety component relied upon by decentralized finance (DeFi) protocols. Nonetheless, factors such as price volatility may undermine this mechanism. In…

General Finance · Quantitative Finance 2021-12-14 Daniel Perez , Sam M. Werner , Jiahua Xu , Benjamin Livshits

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,…

Distributed, Parallel, and Cluster Computing · Computer Science 2022-12-09 Yixin Li , Liang Liang , Yunjian Jia , Wanli Wen , Chaowei Tang , Zhengchuan Chen

A proof of the security of the Bitcoin protocol is made rigorous, and simplified in certain parts. A computational model in which an adversary can delay transmission of blocks by time $\Delta$ is considered. The protocol is generalized to…

Cryptography and Security · Computer Science 2026-04-17 Christopher Blake , Chen Feng , Xuechao Wang , Qianyu Yu

A key component of security in decentralized blockchains is proof of opportunity cost among block producers. In the case of proof-of-work (PoW), currently used by the most prominent systems, the cost is due to spent computation. In this…

Cryptography and Security · Computer Science 2020-12-08 George Bissias , Rainer Böhme , David Thibodeau , Brian N. Levine

Layer 1 (L1) blockchains such as Ethereum are secured under an "honest supermajority of stake" assumption for a large pool of validators who verify each and every transaction on it. This high security comes at a scalability cost which not…

Cryptography and Security · Computer Science 2024-07-25 Peiyao Sheng , Ranvir Rana , Senthil Bala , Himanshu Tyagi , Pramod Viswanath