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This paper presents a study of the Poof-of-Stake (PoW) Ethereum consensus protocol, following the recent switch from Proof-of-Work (PoS) to Proof-of-Stake within Merge upgrade. The new protocol has resulted in reduced energy consumption and…

Computer Science and Game Theory · Computer Science 2023-05-24 Benjamin Kraner , Nicolò Vallarano , Claudio J. Tessone , Caspar Schwarz-Schilling

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

Low transaction throughput and poor scalability are significant issues in public blockchain consensus protocols such as Bitcoins. Recent research efforts in this direction have proposed shard-based consensus protocols where the key idea is…

Computer Science and Game Theory · Computer Science 2018-09-26 Mohammad Hossein Manshaei , Murtuza Jadliwala , Anindya Maiti , Mahdi Fooladgar

The Ethereum Improvement Proposal 3675 (EIP-3675) marks a significant shift, transitioning from a Proof of Work (PoW) to a Proof of Stake (PoS) consensus mechanism. This transition resulted in a staggering 99.95% decrease in energy…

Databases · Computer Science 2024-08-05 Umesh Bhatt , Sarvesh Pandey

Due to its minimal energy requirement the PoS consensus protocol has become an attractive alternative to PoW in modern cryptocurrencies. In this protocol the chance of being selected as a block proposer in each round is proportional to the…

Information Theory · Computer Science 2022-07-26 Zahra Naderi , Seyed Pooya Shariatpanahi , Behnam Bahrak

The security of many Proof-of-Stake (PoS) payment systems relies on quorum-based State Machine Replication (SMR) protocols. While classical analyses assume purely Byzantine faults, real-world systems must tolerate both arbitrary failures…

Cryptography and Security · Computer Science 2026-05-19 Zeta Avarikioti , Eleftherios Kokoris Kogias , Ray Neiheiser , Christos Stefo

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

Does the proof-of-work protocol serve its intended purpose of supporting decentralized cryptocurrency mining? To address this question, we develop a game-theoretical model where miners first invest in hardware to improve the efficiency of…

Trading and Market Microstructure · Quantitative Finance 2021-06-21 Agostino Capponi , Sveinn Olafsson , Humoud Alsabah

Blockchain enables peer-to-peer transactions in cyberspace without a trusted third party. The rapid growth of Ethereum and smart contract blockchains generally calls for well-designed Transaction Fee Mechanisms (TFMs) to allocate limited…

General Economics · Economics 2023-05-05 Luyao Zhang , Fan Zhang

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

In the context of decentralized blockchains, accurately simulating the outcome of order flow auctions (OFAs) off-chain is challenging due to adversarial sequencing, encrypted bids, and frequent state changes. Existing approaches, such as…

Computer Science and Game Theory · Computer Science 2025-03-12 Alex Watts , Davide Sinesi , Jacob Greene

Smart contracts are crucial elements of decentralized technologies, but they face significant obstacles to trustworthiness due to security bugs and trapdoors. To address the core issue, we propose a technology that enables programmers to…

Cryptography and Security · Computer Science 2023-04-19 Nikolaj Bjørner , Shuo Chen , Yang Chen , Zhongxin Guo , Peng Liu , Nanqing Luo

ZK-Rollups have emerged as a leading solution for blockchain scalability, leveraging succinct proofs primarily based on ZKP protocols. This paper explores the design of transaction fee mechanisms (TFMs) for ZK-Rollups, focusing on how key…

Cryptography and Security · Computer Science 2024-10-18 Stefanos Chaliasos , Nicolas Mohnblatt , Assimakis Kattis , Benjamin Livshits

Existing fair exchange protocols usually neglect consideration of cost when assessing their fairness. However, in an environment with non-negligible transaction cost, e.g., public blockchains, high or unexpected transaction cost might be an…

Distributed, Parallel, and Cluster Computing · Computer Science 2022-03-16 Matthias Lohr , Kenneth Skiba , Marco Konersmann , Jan Jürjens , Steffen Staab

Most concurrent blockchain systems rely heavily on the Proof-of-Work (PoW) or Proof-of-Stake (PoS) mechanisms for decentralized consensus and security assurance. However, the substantial energy expenditure stemming from computationally…

Cryptography and Security · Computer Science 2026-05-05 Zishuo Zhao , Zhixuan Fang , Xuechao Wang , Xi Chen , Hongxu Su , Haibo Xiao , Yuan Zhou

Proof of Stake (PoS) protocols rely on voting mechanisms to reach consensus on the current state. If an enhanced majority of staking nodes, also called validators, agree on a proposed block, then this block is appended to the blockchain.…

Computer Science and Game Theory · Computer Science 2021-07-20 Stefanos Leonardos , Daniel Reijsbergen , Georgios Piliouras

The paper examines decentralized cryptocurrency protocols that are based on the use of internal tokens as identity tools. An analysis of security problems with popular Proof-of-stake consensus protocols is provided. A new protocol,…

Cryptography and Security · Computer Science 2016-01-12 Alexander Chepurnoy

Given the parallels between game theory and consensus, it makes sense to intelligently design blockchain or DAG protocols with an incentive-compatible-first mentality. To that end, we propose a new blockchain or DAG protocol enhancement…

Computer Science and Game Theory · Computer Science 2018-04-19 Drew Stone

In a blockchain system, consensus protocol as an incentive and security mechanism, is to ensure the participants to build the block honestly and effectively. There are different consensus protocols for blockchain, like Proof of work (PoW),…

Distributed, Parallel, and Cluster Computing · Computer Science 2019-03-25 Zhongli Dong , Young Choon Lee , Albert Y. Zomaya

The energy sustainability of blockchains, whose consensus protocol rests on the Proof-of-Work, nourishes a heated debate. The underlying issue lies in a highly energy-consuming process, defined as mining, required to validate crypto-asset…

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