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We develop a formalism for reasoning about trading on decentralized exchanges on blockchains and a formulation of a particular form of maximal extractable value (MEV) that represents the total arbitrage opportunity extractable from on-chain…

Mathematical Finance · Quantitative Finance 2023-04-24 Alan Guo

The detection of Maximal Extractable Value (MEV) in blockchain is crucial for enhancing blockchain security, as it enables the evaluation of potential consensus layer risks, the effectiveness of anti-centralization solutions, and the…

Cryptography and Security · Computer Science 2023-05-11 Seongwan Park , Woojin Jeong , Yunyoung Lee , Bumho Son , Huisu Jang , Jaewook Lee

Direct Acyclic Graph (DAG)-based ledger and the corresponding consensus algorithm has been identified as a promising technology for Internet of Things (IoT). Compared with Proof-of-Work (PoW) and Proof-of-Stake (PoS) that have been widely…

Distributed, Parallel, and Cluster Computing · Computer Science 2020-05-19 Yixin Li , Bin Cao , Mugen Peng , Long Zhang , Lei Zhang , Daquan Feng , Jihong Yu

This paper introduces a new consensus protocol, so-called \emph{\stair}, for fast consensus in DAG-based trustless system. In \stair, we propose a new approach to creating local block DAG, namely \emph{x-DAG} (cross-DAG), on each node.…

Cryptography and Security · Computer Science 2019-09-05 Quan Nguyen , Andre Cronje , Michael Kong , Alex Kampa , George Samman

Blockchains offer strong security gurarantees, but cannot protect users against the ordering of transactions. Players such as miners, bots and validators can reorder various transactions and reap significant profits, called the Maximal…

Cryptography and Security · Computer Science 2023-08-30 Arti Vedula , Shaileshh Bojja Venkatakrishnan , Abhishek Gupta

Directed Acyclic Graph (DAG) is a popular approach to achieve scalability of blockchain networks. Due to its high efficiency in data communication and great scalability, DAG has been widely adopted in many applications such as Internet of…

Networking and Internet Architecture · Computer Science 2022-07-12 Canhui Chen , Xu Chen , Zhixuan Fang

Permissionless blockchains such as Bitcoin have excelled at financial services. Yet, opportunistic traders extract monetary value from the mesh of decentralized finance (DeFi) smart contracts through so-called blockchain extractable value…

Cryptography and Security · Computer Science 2021-12-13 Kaihua Qin , Liyi Zhou , Arthur Gervais

Maximal Extractable Value (MEV) represents billions of dollars in extracted value that fundamentally shapes blockchain network dynamics and participant incentives. While research has focused on MEV extraction and mitigation, we lack…

Distributed, Parallel, and Cluster Computing · Computer Science 2026-05-01 Andrei Seoev , Dmitry Belousov , Anastasiia Smirnova , Ksenia Kurinova , Aleksei Smirnov , Denis Fedyanin , Yury Yanovich

Blockchains offer strong security guarantees, but they cannot protect the ordering of transactions. Powerful players, such as miners, sequencers, and sophisticated bots, can reap significant profits by selectively including, excluding, or…

Cryptography and Security · Computer Science 2023-10-24 Sen Yang , Fan Zhang , Ken Huang , Xi Chen , Youwei Yang , Feng Zhu

Selfish Mining is strategic rule-breaking to maximize rewards in proof-of-work protocols [3] and Markov Decision Processes (MDPs) are the preferred tool for finding optimal strategies in Bitcoin [4, 10] and similar linear chain protocols…

Cryptography and Security · Computer Science 2024-05-01 Patrik Keller

Maximal (also miner) extractable value, or MEV, usually refers to the value that privileged players can extract by strategically ordering, censoring, and placing transactions in a blockchain. Each blockchain network, which we refer to as a…

Computer Science and Game Theory · Computer Science 2022-08-30 Bruno Mazorra , Michael Reynolds , Vanesa Daza

We propose a new, more potent attack on decentralized exchanges. This attack leverages absolute commitments, which are commitments that can condition on the strategies made by other agents. This attack allows an adversary to charge monopoly…

Computer Science and Game Theory · Computer Science 2024-10-18 Daji Landis , Nikolaj I. Schwartzbach

In response to the bottleneck of processing throughput inherent to single chain PoW blockchains, several proposals have substituted a single chain for Directed Acyclic Graphs (DAGs). In this work, we investigate two notable DAG-oriented…

Cryptography and Security · Computer Science 2021-09-03 Martin Perešíni , Federico Matteo Benčić , Kamil Malinka , Ivan Homoliak

Byzantine Fault Tolerant (BFT) consensus forms the foundation of many modern blockchains striving for both high throughput and low latency. A growing bottleneck is transaction execution and validation on the critical path of consensus,…

Distributed, Parallel, and Cluster Computing · Computer Science 2026-02-25 Ignacio Amores-Sesar , Mirza Ahad Baig , Seth Gilbert , Ray Neiheiser , Michelle X. Yeo

The blockchain brought interesting properties for many practical applications. However, some properties, such as the transaction processing throughput remained limited, especially in Proof-of-Work blockchains. Therefore, several promising…

Cryptography and Security · Computer Science 2023-11-09 Martin Perešíni , Tomáš Hladký , Kamil Malinka , Ivan Homoliak

This work formalizes the structure and protocols underlying recent distributed systems leveraging block DAGs, which are essentially encoding Lamport's happened-before relations between blocks, as their core network primitives. We then…

Distributed, Parallel, and Cluster Computing · Computer Science 2021-06-08 Maria A Schett , George Danezis

The surging interest in blockchain technology has revitalized the search for effective Byzantine consensus schemes. In particular, the blockchain community has been looking for ways to effectively integrate traditional Byzantine…

Cryptography and Security · Computer Science 2018-11-15 Jian Liu , Wenting Li , Ghassan O. Karame , N. Asokan

We present Bullshark, the first directed acyclic graph (DAG) based asynchronous Byzantine Atomic Broadcast protocol that is optimized for the common synchronous case. Like previous DAG-based BFT protocols, Bullshark requires no extra…

Cryptography and Security · Computer Science 2022-09-08 Alexander Spiegelman , Neil Giridharan , Alberto Sonnino , Lefteris Kokoris-Kogias

This paper consolidates the core technologies and key concepts of our novel Lachesis consensus protocol and Fantom Opera platform, which is permissionless, leaderless and EVM compatible. We introduce our new protocol, so-called Lachesis,…

Distributed, Parallel, and Cluster Computing · Computer Science 2021-08-05 Quan Nguyen , Andre Cronje , Michael Kong , Egor Lysenko , Alex Guzev

Blockchain is maintained as a global log between a network of nodes and uses cryptographic distributed protocols to synchronize the updates. As adopted by Bitcoin and Ethereum these update operations to the ledger are serialized, and…

Cryptography and Security · Computer Science 2019-10-25 Himanshu Gupta , Dharanipragada Janakiram