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Although Bitcoin was intended to be a decentralized digital currency, in practice, mining power is quite concentrated. This fact is a persistent source of concern for the Bitcoin community. We provide an explanation using a simple model to…

Cryptography and Security · Computer Science 2018-11-22 Nick Arnosti , S. Matthew Weinberg

Current blockchain consensus protocols -- notably, Proof of Work (PoW) and Proof of Stake (PoS) -- deliver global agreement but exhibit structural constraints. PoW anchors security in heavy computation, inflating energy use and imposing…

Cryptography and Security · Computer Science 2025-12-11 Kyle Habib , Vladislav Kapitsyn , Giovanni Mazzeo , Faisal Mehrban

We study long-term equilibria that arise in the token monetary policy, or tokenomics, design of proof-of-stake (PoS) blockchain systems that engage utility maximizing users and validators. Validators are system maintainers who get rewarded…

Computer Science and Game Theory · Computer Science 2025-02-13 Aggelos Kiayias , Philip Lazos , Paolo Penna

The distributed consensus mechanism is the backbone of the rapidly developing blockchain network. Blockchain platforms consume vast amounts of electricity based on the current consensus mechanism of Proof of Work. Here, we point out an…

Computers and Society · Computer Science 2022-01-19 Xiaoyang Shi , Hang Xiao , Weifeng Liu , Xi Chen , Klaus. S. Lackner , Vitalik Buterin , Thomas F. Stocker

Cooperation is fundamental for human prosperity. Blockchain, as a trust machine, is a cooperative institution in cyberspace that supports cooperation through distributed trust with consensus protocols. While studies in computer science…

General Economics · Economics 2023-01-23 Luyao Zhang , Xinyu Tian

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

We propose a blockchain architecture in which mining requires a quantum computer. The consensus mechanism is based on proof of quantum work, a quantum-enhanced alternative to traditional proof of work that leverages quantum supremacy to…

Blockchain protocols differ in fundamental ways, including the mechanics of selecting users to produce blocks (e.g., proof-of-work vs. proof-of-stake) and the method to establish consensus (e.g., longest chain rules vs. Byzantine…

Distributed, Parallel, and Cluster Computing · Computer Science 2021-02-05 Andrew Lewis-Pye , Tim Roughgarden

In today's connected world, resource constrained devices are deployed for sensing and decision making applications, ranging from smart cities to environmental monitoring. Those recourse constrained devices are connected to create real-time…

Cryptography and Security · Computer Science 2020-01-22 Deepak Puthal , Saraju P. Mohanty , Venkata P. Yanambaka , Elias Kougianos

Security analysis of blockchain technology is an active domain of research. There has been both cryptographic and game-theoretic security analysis of Proof-of-Work (PoW) blockchains. Prominent work includes the cryptographic security…

Cryptography and Security · Computer Science 2024-09-01 Varul Srivastava , Sujit Gujar

Proof-of-work (PoW) is an algorithmic tool used to secure networks by imposing a computational cost on participating devices. Unfortunately, traditional PoW schemes require that correct devices perform computational work perpetually, even…

Distributed, Parallel, and Cluster Computing · Computer Science 2018-02-20 Diksha Gupta , Jared Saia , Maxwell Young

Blockchain is a novel technology that is rising a lot of interest in the industrial and re- search sectors because its properties of decentralisation, immutability and data integrity. Initially, the underlying consensus mechanism has been…

Cryptography and Security · Computer Science 2018-05-10 Stefano De Angelis

Although the decentralized storage technology based on the blockchain can effectively realize secure data storage on cloud services. However, there are still some problems in the existing schemes, such as low storage capacity and low…

Cryptography and Security · Computer Science 2024-04-03 Zijian Zhou , Caimei Wang , Xiaoheng Deng , Jianhao Lu , Qilue Wen , Chen Zhang , Hong Li

Bitcoin is a representative decentralized currency system. For the security of Bitcoin, fairness in the distribution of mining rewards plays a crucial role in preventing the concentration of computational power in a few miners. Here,…

Cryptography and Security · Computer Science 2025-06-17 Akira Sakurai , Kazuyuki Shudo

Proof-of-stake blockchain protocols have emerged as a compelling paradigm for organizing distributed ledger systems. In proof-of-stake (PoS), a subset of stakeholders participate in validating a growing ledger of transactions. For the…

Computer Science and Game Theory · Computer Science 2024-07-12 Aggelos Kiayias , Elias Koutsoupias , Francisco Marmolejo-Cossio , Aikaterini-Panagiota Stouka

Blockchain is an essentially distributed database recording all transactions or digital events among participating parties. Each transaction in the records is approved and verified by consensus of the participants in the system that…

Distributed, Parallel, and Cluster Computing · Computer Science 2023-07-07 Jie You

Decentralisation is one of the promises introduced by blockchain technologies: fair and secure interaction amongst peers with no dominant positions, single points of failure or censorship. Decentralisation, however, appears difficult to be…

Distributed, Parallel, and Cluster Computing · Computer Science 2019-11-20 Andrea Bracciali , Davide Grossi , Ronald de Haan

We present a design called Proof of Gradient Optimization (PoGO) for blockchain consensus, where miners produce verifiable evidence of training large-scale machine-learning models. Building on previous work, we incorporate quantized…

Machine Learning · Computer Science 2025-04-24 José I. Orlicki

Mining blocks on a blockchain equipped with a proof of work consensus protocol is well-known to be resource-consuming. A miner bears the operational cost, mainly electricity consumption and IT gear, of mining, and is compensated by a…

Cryptography and Security · Computer Science 2020-10-27 Hansjoerg Albrecher , Pierre-Olivier Goffard

We analyze the economic incentives generated by the proof-of-stake mechanism discussed in the Ethereum Casper upgrade proposal. Compared with proof-of-work, proof-of-stake has a different cost structure for attackers. In Budish (2018),…

Cryptography and Security · Computer Science 2018-07-26 George Gui , Ali Hortacsu , Jose Tudon