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The goal of this paper is to rigorously interrogate conventional wisdom about centralization in block-building (due to, e.g., MEV and private order flow) and the outsourcing of block-building by validators to specialists (i.e.,…

Computer Science and Game Theory · Computer Science 2024-01-23 Maryam Bahrani , Pranav Garimidi , Tim Roughgarden

Authorization is challenging in distributed systems that cannot rely on the identification of nodes. Proof-of-work offers an alternative gate-keeping mechanism, but its probabilistic nature is incompatible with conventional security…

Cryptography and Security · Computer Science 2022-09-20 Patrik Keller , Rainer Böhme

A proof-of-randomness (PoR) protocol is presented as a fair and low energy-cost consensus mechanism for blockchains. Each network node of a blockchain may use a true random number generator (TRNG) and hash algorism to fulfil the PoR…

Cryptography and Security · Computer Science 2025-02-18 Wen-Zhuo Zhang , Victor Kai

We study decentralized cryptocurrency protocols in which the participants do not deplete physical scarce resources. Such protocols commonly rely on Proof of Stake, i.e., on mechanisms that extend voting power to the stakeholders of the…

Cryptography and Security · Computer Science 2017-01-12 Iddo Bentov , Ariel Gabizon , Alex Mizrahi

This paper introduces EarthOL, a novel consensus protocol that attempts to replace computational waste in blockchain systems with verifiable human contributions within bounded domains. While recognizing the fundamental impossibility of…

Cryptography and Security · Computer Science 2025-05-28 Jiaxiong He

With the increasing adoption of the Proof of Stake (PoS) blockchain, it is timely to study the economy created by such blockchain. In this chapter, we will survey recent progress on the trading and wealth evolution in a cryptocurrency where…

General Economics · Economics 2023-08-30 Wenpin Tang

Bitcoin is the most successful cryptocurrency so far. This is mainly due to its novel consensus algorithm, which is based on proof-of-work combined with a cryptographically-protected data structure and a rewarding scheme that incentivizes…

Cryptography and Security · Computer Science 2019-05-24 Pawel Szalachowski , Daniel Reijsbergen , Ivan Homoliak , Siwei Sun

The convergence of mobile edge computing (MEC) and blockchain is transforming the current computing services in wireless Internet-of-Things networks, by enabling task offloading with security enhancement based on blockchain mining. Yet the…

Permissionless consensus protocols require a scarce resource to regulate leader election and provide Sybil resistance. Existing paradigms such as Proof of Work and Proof of Stake instantiate this scarcity through parallelizable resources…

Distributed, Parallel, and Cluster Computing · Computer Science 2026-01-09 Homayoun Maleki , Nekane Sainz , Jon Legarda

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

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

Coding theory plays a crucial role in enabling reliable communication, storage, and computation. Classical approaches assume a worst-case adversarial model and ensure error correction and data recovery only when the number of honest nodes…

Machine Learning · Computer Science 2026-01-06 Hanzaleh Akbari Nodehi , Viveck R. Cadambe , Mohammad Ali Maddah-Ali

Blockchain consensus mechanisms have relied on algorithms such as Proof-of-Work (PoW) and Proof-of-Stake (PoS) to ensure network functionality and integrity. However, these approaches struggle with adaptability for decision-making where the…

Multiagent Systems · Computer Science 2026-02-10 Apurba Pokharel , Ram Dantu , Shakila Zaman , Vinh Quach , Sirisha Talapuru

We present an analysis of the Proof-of-Work consensus algorithm, used on the Bitcoin blockchain, using a Mean Field Game framework. Using a master equation, we provide an equilibrium characterization of the total computational power devoted…

Theoretical Economics · Economics 2020-04-21 Charles Bertucci , Louis Bertucci , Jean-Michel Lasry , Pierre-Louis Lions

Cryptocurrency achieves distributed consensus using proof of work (PoW). Prior research in blockchain security identified financially incentivized attacks based on withholding blocks which have the attacker compromise a victim pool and pose…

Cryptography and Security · Computer Science 2020-09-01 Sang-Yoon Chang

Decentralization is a foundational principle of permissionless blockchains, with consensus mechanisms serving a critical role in its realization. This study quantifies the decentralization of consensus mechanisms in proof-of-stake (PoS)…

Distributed, Parallel, and Cluster Computing · Computer Science 2025-04-22 Shashank Motepalli , Hans-Arno Jacobsen

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 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

Selfish miners selectively withhold blocks to earn disproportionately high revenue. The vast majority of the selfish mining literature focuses exclusively on block rewards. Carlsten et al. [2016] is a notable exception, observing that…

Computer Science and Game Theory · Computer Science 2025-08-11 Maryam Bahrani , Michael Neuder , S. Matthew Weinberg

Generative AI models, such as GPT-4 and Stable Diffusion, have demonstrated powerful and disruptive capabilities in natural language and image tasks. However, deploying these models in decentralized environments remains challenging. Unlike…

Artificial Intelligence · Computer Science 2024-05-31 Zhenjie Zhang , Yuyang Rao , Hao Xiao , Xiaokui Xiao , Yin Yang
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