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The goals of this paper are twofold: (1) to present a new method that is able to find linear laws governing the time evolution of Markov chains and (2) to apply this method for anomaly detection in Bitcoin prices. To accomplish these goals,…

Statistical Finance · Quantitative Finance 2022-01-25 Marcell T. Kurbucz , Péter Pósfay , Antal Jakovác

Forks in the Bitcoin network result from the natural competition in the blockchain's Proof-of-Work consensus protocol. Their frequency is a critical indicator for the efficiency of a distributed ledger as they can contribute to resource…

Distributed, Parallel, and Cluster Computing · Computer Science 2024-11-18 Paolo Barucca , Carlo Campajola , Jiahua Xu

Nakamoto consensus are the most widely adopted decentralized consensus mechanism in cryptocurrency systems. Since it was proposed in 2008, many studies have focused on analyzing its security. Most of them focus on maximizing the profit of…

Cryptography and Security · Computer Science 2025-10-30 Junjie Hu , Sisi Duan

Despite the tremendous interest in cryptocurrencies like Bitcoin and Ethereum today, many aspects of the underlying consensus protocols are poorly understood. Therefore, the search for protocols that improve either throughput or security…

Cryptography and Security · Computer Science 2021-09-01 Ignacio Amores-Sesar , Christian Cachin , Anna Parker

Off-chain protocols (channels) are a promising solution to the scalability and privacy challenges of blockchain payments. Current proposals, however, require synchrony assumptions to preserve the safety of a channel, leaking to an adversary…

Distributed, Parallel, and Cluster Computing · Computer Science 2020-06-22 Georgia Avarikioti , Eleftherios Kokoris Kogias , Roger Wattenhofer , Dionysis Zindros

We consider the execution of smart contracts on Bitcoin. There, every contract step corresponds to appending to the blockchain a new transaction that spends the output representing the old contract state, creating a new one for the updated…

Cryptography and Security · Computer Science 2025-06-05 Dario Maddaloni , Riccardo Marchesin , Roberto Zunino

I study a repeated auction in which payments are made with a blockchain token created and initially owned by the auction designer. Unlike the ``virtual money'' previously examined in mechanism design, such tokens can be saved and traded…

Theoretical Economics · Economics 2025-10-23 Andrea Canidio

Blockchain systems are designed to produce blocks at a constant average rate. The most popular systems currently employ a Proof of Work (PoW) algorithm as a means of creating these blocks. Bitcoin produces, on average, one block every 10…

Cryptography and Security · Computer Science 2019-08-15 George Bissias , Brian Neil Levine

It is a common narrative that blockchains are immutable and so it is technically impossible to erase data stored on them. For legal and ethical reasons, however, individuals and organizations might be compelled to erase locally stored data,…

Cryptography and Security · Computer Science 2020-02-20 Martin Florian , Sophie Beaucamp , Sebastian Henningsen , Björn Scheuermann

Blockchain and blockchain-inspired decentralized applications are on the rise thanks to their unique characteristics such as their decentralized nature, anonymity, and tamper-proof nature; however, blockchain transactions tend to experience…

Cryptography and Security · Computer Science 2026-04-08 Yi Lyu

The distributed biased min-consensus (DBMC) protocol is an iterative scheme that solves the shortest path problem asymptotically, requiring only local information exchange between neighboring nodes. By appropriately designing the gain…

Systems and Control · Electrical Eng. & Systems 2025-09-25 Zicheng Huang , Wangzhi Zhou , Yuanqiu Mo

The blockchain data structure maintained via the longest-chain rule---popularized by Bitcoin---is a powerful algorithmic tool for consensus algorithms. Such algorithms achieve consistency for blocks in the chain as a function of their depth…

Cryptography and Security · Computer Science 2019-11-25 Erica Blum , Aggelos Kiayias , Cristopher Moore , Saad Quader , Alexander Russell

Trading on decentralized exchanges has been one of the primary use cases for permissionless blockchains with daily trading volume exceeding billions of U.S.~dollars. In the status quo, users broadcast transactions and miners are responsible…

Computer Science and Game Theory · Computer Science 2023-10-31 Matheus V. X. Ferreira , David C. Parkes

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

Blockchain technology transformed the digital sphere by providing a transparent, secure, and decentralized platform for data security across a range of industries, including cryptocurrencies and supply chain management. Blockchain's…

Cryptography and Security · Computer Science 2023-06-22 Bilash Saha , Md Mehedi Hasan , Nafisa Anjum , Sharaban Tahora , Aiasha Siddika , Hossain Shahriar

Cryptographic signatures can be used to increase the resilience of distributed systems against adversarial attacks, by increasing the number of faulty parties that can be tolerated. While this is well-studied for consensus, it has been…

Distributed, Parallel, and Cluster Computing · Computer Science 2022-06-08 Christoph Lenzen , Julian Loss

In blockchain systems, the scarcity of a resource is used as a Sybil protection mechanism. In Proof-of-Work blockchains, that resource is computing power. In the event of a fork, the scarcity of this resource theoretically prevents miners…

Cryptography and Security · Computer Science 2023-02-24 Leonard Lys , Sebastien Forestier , Damir Vodenicarevic , Adrien Laversanne-Finot

Blockchain is a distributed ledger, which is protected against malicious modifications by means of cryptographic tools, e.g. digital signatures and hash functions. One of the most prominent applications of blockchains is cryptocurrencies,…

Cryptography and Security · Computer Science 2019-12-20 E. O. Kiktenko , M. A. Kudinov , A. K. Fedorov

Blockchains based on the celebrated Nakamoto consensus protocol have shown promise in several applications, including cryptocurrencies. However, these blockchains have inherent scalability limits caused by the protocol's consensus…

Cryptography and Security · Computer Science 2021-10-12 Qing Zhang , Xueping Gong , Huizhong Li , Hao Wu , Jiheng Zhang

Large-scale rumor spreading could pose severe social and economic damages. The emergence of online social networks along with the new media can even make rumor spreading more severe. Effective control of rumor spreading is of theoretical…

Social and Information Networks · Computer Science 2018-02-26 Yize Chen , Quanlai Li , Hao Wang