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Algorand is a recent, open-source public or permissionless blockchain system that employs a novel proof-of-stake byzantine consensus protocol to efficiently scale the distributed transaction agreement problem to billions of users. In…

Cryptography and Security · Computer Science 2019-11-11 Mehdi Fooladgar , Mohammad Hossein Manshaei , Murtuza Jadliwala , Mohammad Ashiqur Rahman

Bitcoin already faces a quantum threat through Shor attacks on elliptic-curve signatures. This paper isolates the other component that public discussion often conflates with it: mining. Grover's algorithm halves the exponent of brute-force…

Quantum Physics · Physics 2026-03-30 Pierre-Luc Dallaire-Demers , BTQ Technologies Team

Proof-of-work blockchains reward each miner for one completed block by an amount that is, in expectation, proportional to the number of hashes the miner contributed to the mining of the block. Is this proportional allocation rule optimal?…

Computer Science and Game Theory · Computer Science 2019-09-25 Xi Chen , Christos Papadimitriou , Tim Roughgarden

Following the publication of Bitcoin's arguably most famous attack, selfish mining, various works have introduced mechanisms to enhance blockchain systems' game theoretic resilience. Some reward mechanisms, like FruitChains, have been shown…

Computer Science and Game Theory · Computer Science 2025-03-14 Lukas Aumayr , Zeta Avarikioti , Dimitris Karakostas , Karl Kreder , Shreekara Shastry

Since Bitcoin's inception in 2008, it has became attractive investments for both trading and mining. To mine Bitcoins, a miner has to invest in computing power and pay for electricity to solve cryptographic puzzles for rewards, if it…

Cryptography and Security · Computer Science 2020-02-18 Ehsan Meamari , Chien-Chung Shen

Hashed Timelock Contract (HTLC) in Lightning Network is susceptible to a griefing attack. An attacker can block several channels and stall payments by mounting this attack. A state-of-the-art countermeasure, Hashed Timelock Contract with…

Cryptography and Security · Computer Science 2022-12-21 Subhra Mazumdar , Prabal Banerjee , Abhinandan Sinha , Sushmita Ruj , Bimal Roy

Most current assessments use ex post proxies that miss uncertainty and fail to consistently capture the rapid change in bitcoin mining. We introduce a unified, ex ante statistical model that derives expected return, downside risk, and…

Computational Engineering, Finance, and Science · Computer Science 2025-12-24 Yuting Cai , Ruthav Sadali , Korok Ray , Chao Tian

Miners in a blockchain system are suffering from ever-increasing storage costs, which in general have not been properly compensated by the users' transaction fees. This reduces the incentives for the miners' participation and may jeopardize…

Computer Science and Game Theory · Computer Science 2021-08-24 Yunshu Liu , Zhixuan Fang , Man Hon Cheung , Wei Cai , Jianwei Huang

We present a strategy for a single quantum miner with relatively low hashing power, with the same ramifications as a 51% attack. Bitcoin nodes consider the chain with the highest cumulative proof-of-work to be the valid chain. A quantum…

Quantum Physics · Physics 2024-10-01 Bolton Bailey , Or Sattath

Mining blocks in a blockchain using the \textit{Proof-of-Work} consensus protocol involves significant risk, as network participants face continuous operational costs while earning infrequent capital gains upon successfully mining a block.…

Cryptography and Security · Computer Science 2025-11-19 Pierre-Olivier Goffard , Hansjoerg Albrecher , Jean-Pierre Fouque

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

Bitcoin has witnessed a prevailing transition that employing transaction fees paid by users rather than subsidy assigned by the system as the main incentive for mining.

Computer Science and Game Theory · Computer Science 2021-01-01 Hongwei Shi , Shengling Wang , Qin Hu , Xiuzhen Cheng , Jianhui Huang

We propose a greedy algorithm to select $N$ important features among $P$ input features for a non-linear prediction problem. The features are selected one by one sequentially, in an iterative loss minimization procedure. We use neural…

Machine Learning · Computer Science 2023-09-14 Sandipan Das , Alireza M. Javid , Prakash Borpatra Gohain , Yonina C. Eldar , Saikat Chatterjee

Existing permissionless blockchain solutions rely on peer-to-peer propagation mechanisms, where nodes in a network transfer transaction they received to their neighbors. Unfortunately, there is no explicit incentive for such transaction…

Cryptography and Security · Computer Science 2018-06-15 Oguzhan Ersoy , Zhijie Ren , Zekeriya Erkin , Reginald L. Lagendijk

TrueBit is a protocol that uses interactive verification to allow a resource-constrained computation environment like a blockchain to perform much larger computations than usual in a trusted way. As long as a single honest participant is…

Cryptography and Security · Computer Science 2018-07-02 Julia Koch , Christian Reitwiessner

Smart Contracts and transactions allow users to implement elaborate constructions on cryptocurrency blockchains like Bitcoin and Ethereum. Many of these constructions, including operational payment channels and atomic swaps, use a building…

Cryptography and Security · Computer Science 2021-03-26 Itay Tsabary , Matan Yechieli , Alex Manuskin , Ittay Eyal

Relay Mining presents a scalable solution employing probabilistic mechanisms, crypto-economic incentives, and new cryptographic primitives to estimate and prove the volume of Remote Procedure Calls (RPCs) made from a client to a server.…

Distributed, Parallel, and Cluster Computing · Computer Science 2024-04-30 Daniel Olshansky , Ramiro Rodríguez Colmeiro

In blockchain networks adopting the proof-of-work schemes, the monetary incentive is introduced by the Nakamoto consensus protocol to guide the behaviors of the full nodes (i.e., block miners) in the process of maintaining the consensus…

Computer Science and Game Theory · Computer Science 2018-01-01 Xiaojun Liu , Wenbo Wang , Dusit Niyato , Narisa Zhao , Ping Wang

Blockchains are intended to be immutable, so an attacker who is able to delete transactions through a chain reorganization (a malicious reorg) can perform a profitable double-spend attack. We study the rate at which an attacker can execute…

Cryptography and Security · Computer Science 2020-09-14 Michael Neuder , Daniel J. Moroz , Rithvik Rao , David C. Parkes

A hard-fork reconfiguration of the peer to peer Bitcoin network is described that substitutes tamper-evident logs and proof-of-stake consensus for proof-of-work consensus. The block creation rewards and transaction fees are reallocated to…

Computers and Society · Computer Science 2014-05-23 Stephen L. Reed
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