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We present an example where a distributed coordinated protocol supported by a blockchain-enabled monetary mechanism leads to achieving optimal information theoretic degrees of freedom gains. The considered setting is that of a linear…

Information Theory · Computer Science 2018-08-07 Aly El Gamal , Hesham El Gamal

We consider the leader selection problem in a network with consensus dynamics where both leader and follower agents are subject to stochastic external disturbances. The performance of the system is quantified by the total steady-state…

Optimization and Control · Mathematics 2017-12-25 Erika Mackin , Stacy Patterson

Blockchain-based cryptocurrencies prioritize transactions based on their fees, creating a unique kind of fee market. Empirically, this market has failed to yield stable equilibria with predictable prices for desired levels of service. We…

Cryptography and Security · Computer Science 2019-01-23 Soumya Basu , David Easley , Maureen O'Hara , Emin Gün Sirer

Consensus protocols inherently rely on the notion of leader election, in which one or a subset of participants are temporarily elected to authorize and announce the network's latest state. While leader election is a well studied problem,…

Cryptography and Security · Computer Science 2018-02-06 Sarah Azouvi , Patrick McCorry , Sarah Meiklejohn

Scalability problems in programmable blockchains have created a strong demand for secure methods that move the bulk of computation outside the blockchain. One of the preferred solutions to this problem involves off-chain computers that…

Cryptography and Security · Computer Science 2022-12-26 Diego Nehab , Augusto Teixeira

Understanding the strategic behavior of miners in a blockchain is of great importance for its proper operation. A common model for mining games considers an infinite time horizon, with players optimizing asymptotic average objectives.…

Computer Science and Game Theory · Computer Science 2021-07-21 Alejandro Jofré , Angel Pardo , David Salas , Victor Verdugo , José Verschae

The Holy Grail of a decentralised stablecoin is achieved on rigorous mathematical frameworks, obtaining multiple advantageous proofs: stability, convergence, truthfulness, faithfulness, and malicious-security. These properties could only be…

Cryptography and Security · Computer Science 2019-09-18 David Cerezo Sánchez

As cryptocurrency evolved, new financial instruments, such as lending and borrowing protocols, currency exchanges, fungible and non-fungible tokens (NFT), staking and mining protocols have emerged. A financial ecosystem built on top of a…

Trading and Market Microstructure · Quantitative Finance 2023-10-12 Priyanka Bose , Dipanjan Das , Fabio Gritti , Nicola Ruaro , Christopher Kruegel , Giovanni Vigna

In a PoW-based blockchain network, mining pools (the solo miner could be regarded as a mining pool containing one miner) compete to successfully mine blocks to pursue rewards. Generally, the rewards include the fixed block subsidies and…

Computer Science and Game Theory · Computer Science 2021-10-20 Jinmian Chen , Yukun Cheng , Zhiqi Xu , Yan Cao

In blockchain-based order book systems, buyers and sellers trade assets, while it is miners to match them and include their transactions in the blockchain. It is found that many miners behave selfishly and myopically, prioritizing…

Computer Science and Game Theory · Computer Science 2025-01-23 Yunshu Liu , Lingjie Duan

The design of permissioned blockchains places an access control requirement for members to read, access, and write information over the blockchains. In this paper, we study a hierarchical scenario to include three types of participants:…

Cryptography and Security · Computer Science 2021-01-26 Hongyin Chen , Zhaohua Chen , Yukun Cheng , Xiaotie Deng , Wenhan Huang , Jichen Li , Hongyi Ling , Mengqian Zhang

Our aim in this paper is to investigate the profitability of double-spending (DS) attacks that manipulate an a priori mined transaction in a blockchain. It was well understood that a successful DS attack is established when the proportion…

Cryptography and Security · Computer Science 2020-10-15 Jehyuk Jang , Heung-No Lee

Financial fraud cases are on the rise even with the current technological advancements. Due to the lack of inter-organization synergy and because of privacy concerns, authentic financial transaction data is rarely available. On the other…

One of the most innovative aspects of blockchain technology consists in the introduction of an incentive layer to regulate the behavior of distributed protocols. The designer of a blockchain system faces therefore issues that are akin to…

Computer Science and Game Theory · Computer Science 2022-03-16 Davide Grossi

Blockchain offers a decentralized, immutable, transparent system of records. It offers a peer-to-peer network of nodes with no centralised governing entity making it unhackable and therefore, more secure than the traditional paper-based or…

Cryptography and Security · Computer Science 2019-11-27 Harsh Jot Singh , Abdelhakim Senhaji Hafid

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

We calculate the probability of success of block-hiding mining strategies in Bitcoin-like networks. These strategies involve building a secret branch of the block-tree and publishing it opportunistically, aiming to replace the top of the…

Cryptography and Security · Computer Science 2014-02-19 Assaf Shomer

Bitcoin and many other similar Cryptocurrencies have been in existence for over a decade, prominently focusing on decentralized, pseudo-anonymous ledger-based transactions. Many protocol improvements and changes have resulted in new…

Cryptography and Security · Computer Science 2024-09-10 Chaitanya Rahalkar , Anushka Virgaonkar

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…

Relay Mining presents a scalable solution employing probabilistic mechanisms, crypto-economic incentives, and new cryptographic primitives to estimate and prove the volume of Remote Procedure Calls (RPCs) made from a client to a server.…

Distributed, Parallel, and Cluster Computing · Computer Science 2024-04-30 Daniel Olshansky , Ramiro Rodríguez Colmeiro