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This paper examines the economic and security implications of Proof-of-Stake (POS) designs, providing a survey of POS design choices and their underlying economic principles in prominent POS-blockchains. The paper argues that…

General Economics · Economics 2024-05-24 Nicolas Oderbolz , Beatrix Marosvölgyi , Matthias Hafner

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

Proponents of blockchains believe that this technology will revolutionize e-commerce. To evaluate this belief, we invite several groups of students to transact on a decentralized peer-to-peer marketplace built on the platform provided by…

General Economics · Economics 2025-02-14 David Lee Kuo Chuen , Yang Li , Weibiao Xu , Willy Zhao

Blockchain technology is developing using in reliable applications which can be designed to achieve decentralization and trustless. Based on the open network innovation theory, this paper proposes a technical intermediary management idea…

Computers and Society · Computer Science 2023-09-04 Yang Yue , Joseph Z. Shyu

In economies without monetary transfers, token systems serve as an alternative to sustain cooperation, alleviate free riding, and increase efficiency. This paper studies whether a token-based economy can be effective in marketplaces with…

Computer Science and Game Theory · Computer Science 2025-08-04 Itai Ashlagi , Süleyman Kerimov , Omer Tamuz , Geng Zhao

Supply chain integration remains an elusive goal for the construction and engineering industry. The high degree of fragmentation and the reliance on third-party financial institutions has pushed the physical and financial supply chains…

Cryptography and Security · Computer Science 2020-12-04 Hesam Hamledari , Martin Fischer

We investigate the market microstructure of Automated Market Makers (AMMs), the most prominent type of blockchain-based decentralized exchanges. We show that the order execution mechanism yields token value loss for liquidity providers if…

Trading and Market Microstructure · Quantitative Finance 2021-07-22 Agostino Capponi , Ruizhe Jia

Blockchain is an emerging technology framework for creating and storing transaction in distributed ledgers with a high degree of security and reliability. In this paper we present a blockchain-based platform to create and store contracts in…

Computers and Society · Computer Science 2019-01-28 Mahmood A. Rashid , Krishneel Deo , Divnesh Prasad , Kunal Singh , Sarvesh Chand , Mansour Assaf

S-money [Proc. R. Soc. A 475, 20190170 (2019)] schemes define virtual tokens designed for networks with relativistic or other trusted signalling constraints. The tokens allow near-instant verification and guarantee unforgeability without…

Quantum Physics · Physics 2020-02-13 Adrian Kent , Damián Pitalúa-García

In order to have transactions executed and recorded on blockchains such as the Ethereum Mainnet, fees expressed in crypto-currency units of the blockchain must be paid. One can buy crypto-currency called Ether of the Ethereum blockchain…

Distributed, Parallel, and Cluster Computing · Computer Science 2021-08-20 Serdar Metin , Can Özturan

In certain Blockchain systems, multiple Blockchains are required to operate cooperatively for security, performance, and capacity considerations. This invention defines a cross-chain mechanism where a main Blockchain issues the tokens,…

Cryptography and Security · Computer Science 2023-08-21 Guangsheng Yu , Xu Wang , Ren Ping Liu

The limit order book mechanism has been the core trading mechanism of the modern financial market. In the cryptocurrency market, centralized exchanges also adopt this limit order book mechanism and a centralized matching engine dynamically…

Computational Engineering, Finance, and Science · Computer Science 2022-12-21 Yeonwoo Jeong , Chanyoung Jeoung , Hosan Jeong , SangYoon Han , Juntae Kim

Cryptocurrencies are examined through the asset flow equations and experimental asset markets. Since tangible value of a typical cryptocurrency is non-existent, the theory suggests that price will gravitate toward liquidity value, i.e., the…

Mathematical Finance · Quantitative Finance 2018-02-28 Carey Caginalp , Gunduz Caginalp

The study of how to set up cryptocurrency incentive mechanisms and to operationalize governance is token economics. Given the $250 billion market cap for cryptocurrencies, there is compelling need to investigate this topic. In this paper,…

Social and Information Networks · Computer Science 2020-10-22 Henry M. Kim , Marek Laskowski , Michael Zargham , HJalmar Turesson , Matt Barlin , Danil Kabanov

A blockchain replaces central counterparties with time-consuming consensus protocols to record the transfer of ownership. This settlement latency slows cross-exchange trading, exposing arbitrageurs to price risk. Off-chain settlement,…

Trading and Market Microstructure · Quantitative Finance 2023-10-20 Nikolaus Hautsch , Christoph Scheuch , Stefan Voigt

We consider the problem of being a cross-chain wealth management platform with deposits, redemptions and investment assets across multiple networks. We discuss the need for blockchain bridges to facilitates fund flows across platforms. We…

General Finance · Quantitative Finance 2023-11-21 Ravi Kashyap

Proof-of-stake (PoS) is a promising approach for designing efficient blockchains, where block proposers are randomly chosen with probability proportional to their stake. A primary concern with PoS systems is the "rich getting richer"…

Cryptography and Security · Computer Science 2018-10-17 Giulia Fanti , Leonid Kogan , Sewoong Oh , Kathleen Ruan , Pramod Viswanath , Gerui Wang

Blockchain platforms attempt to expand their user base by awarding tokens to users, a practice known as issuing airdrops. Empirical data and related work implies that previous airdrops fall short of their stated aim of attracting long-term…

Computer Science and Game Theory · Computer Science 2024-07-02 Aviv Yaish , Benjamin Livshits

The financial industry is a pioneer in Blockchain technology. One of the most popular platforms in Token-based banking is the flexible Stellar platform. This platform is open-source, and today, its wide range of features makes it possible…

Distributed, Parallel, and Cluster Computing · Computer Science 2021-07-02 Mohammad Javad Shayegan , Kiarash Shamsi

Play-to-earn is one of the prospective categories of decentralized applications. The play-to-earn projects combine blockchain technology with entertaining games and finance, attracting various participants. While huge amounts of capital…

Cryptography and Security · Computer Science 2022-11-03 Jingfan Yu , Mengqian Zhang , Xi Chen , Zhixuan Fang