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In the Bitcoin system, transaction fees serve as an incentive for blockchain confirmations. In general, a transaction with a higher fee is likely to be included in the next block mined, whereas a transaction with a smaller fee or no fee may…

Cryptography and Security · Computer Science 2024-05-27 Limeng Zhang , Rui Zhou , Qing Liu , Chengfei Liu , M. Ali Babar

Centralized monetary policy, leading to persistent inflation, is often inconsistent, untrustworthy, and unpredictable. Algorithmic stablecoins enabled by blockchain technology are promising in solving this problem. Algorithmic stablecoins…

General Economics · Economics 2022-01-17 Luyao Zhang , Yulin Liu

Blockchain's economic value lies in enabling financial and economic transactions without relying on trusted, centralized intermediaries. In practice, however, transactions pass through a fragmented chain of intermediaries before being…

General Economics · Economics 2026-05-05 Andrea Canidio , Vabuk Pahari

We present the notion of multilevel slashing, where proof-of-stake blockchain validators can obtain gradual levels of assurance that a certain block is bound to be finalized in a global consensus procedure, unless an increasing and…

Distributed, Parallel, and Cluster Computing · Computer Science 2024-10-30 Kenan Wood , Hammurabi Mendes , Jonad Pulaj

We analyze bribing attacks in Proof-of-Stake distributed ledgers from a game theoretic perspective. In bribing attacks, an adversary offers participants a reward in exchange for instructing them how to behave, with the goal of attacking the…

Computer Science and Game Theory · Computer Science 2024-06-21 Dimitris Karakostas , Aggelos Kiayias , Thomas Zacharias

We introduce the theoretical study of a Platform Equilibrium in a market with unit-demand buyers and unit-supply sellers. Each seller can join a platform and transact with any buyer or remain off-platform and transact with a subset of…

Computer Science and Game Theory · Computer Science 2024-06-24 Alon Eden , Gary Qiurui Ma , David C. Parkes

Blockchain networks are facing increasingly heterogeneous computational demands, and in response, protocol designers have started building specialized infrastructure to supply that demand. This paper introduces Resonance: a new kind of…

Computer Science and Game Theory · Computer Science 2024-11-20 Maryam Bahrani , Naveen Durvasula

This work applies reinforcement learning (RL) from the AI machine learning field to derive an optimal Bitcoin-like blockchain mining strategy without knowing the details of the blockchain network model. Previously, the most profitable…

Cryptography and Security · Computer Science 2021-01-07 Taotao Wang , Soung Chang Liew , Shengli Zhang

Blockchain governance is a subject of ongoing research and an interdisciplinary view of blockchain governance is vital to aid in further research for establishing a formal governance framework for this nascent technology. In this paper, the…

Computer Science and Game Theory · Computer Science 2020-03-23 Nida Khan , Tabrez Ahmad , Anass Patel , Radu State

We model the role of an online platform disrupting a market with unit-demand buyers and unit-supply sellers. Each seller can transact with a subset of the buyers whom she already knows, as well as with any additional buyers to whom she is…

Computer Science and Game Theory · Computer Science 2024-06-12 Luca D'Amico-Wong , Yannai A. Gonczarowski , Gary Qiurui Ma , David C. Parkes

The problem of pricing the cloud has attracted much recent attention due to the widespread use of cloud computing and cloud services. From a theoretical perspective, several mechanisms that provide strong efficiency or fairness guarantees…

Computer Science and Game Theory · Computer Science 2019-08-16 Ian A. Kash , Peter Key , Warut Suksompong

According to the proportional allocation mechanism from the network optimization literature, users compete for a divisible resource -- such as bandwidth -- by submitting bids. The mechanism allocates to each user a fraction of the resource…

Computer Science and Game Theory · Computer Science 2014-02-17 Ioannis Caragiannis , Alexandros A. Voudouris

Blockchain technology is widely expected to reduce transaction costs by automating contract enforcement and eliminating intermediaries; yet, the execution costs imposed by network congestion have received little attention in the operations…

We engineer blockchain based risk managed portfolios by creating three funds with distinct risk and return profiles: 1) Alpha - high risk portfolio; 2) Beta - mimics the wider market; and 3) Gamma - represents the risk free rate adjusted to…

Portfolio Management · Quantitative Finance 2024-07-16 Ravi Kashyap

Aside from the conception of new blockchain architectures, existing blockchain optimizations in the literature primarily focus on system or data-oriented optimizations within prevailing blockchains. However, since blockchains handle…

Distributed, Parallel, and Cluster Computing · Computer Science 2023-01-13 Jeeta Ann Chacko , Ruben Mayer , Hans-Arno Jacobsen

Blockchains face inherent limitations when communicating outside their own ecosystem, largely due to the Byzantine Fault Tolerant (BFT) 3f+1 security model. Trusted Execution Environments (TEEs) are a promising mitigation because they allow…

Theoretical Economics · Economics 2025-11-06 Alex Shamis , Matt Stephenson , Linfeng Zhou

In this paper, we construct a decentralized clearing mechanism which endogenously and automatically provides a claims resolution procedure. This mechanism can be used to clear a network of obligations through blockchain. In particular, we…

Risk Management · Quantitative Finance 2022-01-11 Hamed Amini , Maxim Bichuch , Zachary Feinstein

All public blockchains are secured by a proof of opportunity cost among block producers. For example, the security offered by proof-of-work (PoW) systems, like Bitcoin, is due to spent computation; it is work precisely because it cannot be…

Computer Science and Game Theory · Computer Science 2019-08-27 George Bissias , Brian N. Levine , David Thibodeau

Blockchains have popularized the Automated Market Makers (AMMs), where users trade crypto-assets directly with a smart contract, governed by a pricing function embedded in the contract's code. Today, users of AMMs are often forced to accept…

Computer Science and Game Theory · Computer Science 2026-05-28 Yuhao Li , Elaine Shi , Mengqian Zhang

We describe a plausible probabilistic model for a blockchain queueing environment in which rational, profit-maximising schedulers impose adversarial disciplines on incoming messages containing a payload that encodes a state transition in a…

Probability · Mathematics 2023-02-17 Andrew W. Macpherson