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Blockchain-based federated learning (BCFL) has recently gained tremendous attention because of its advantages such as decentralization and privacy protection of raw data. However, there has been few research focusing on the allocation of…

Cryptography and Security · Computer Science 2022-02-23 Zhilin Wang , Qin Hu , Ruinian Li , Minghui Xu , Zehui Xiong

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

Our contributions with this paper are twofold. First, we elucidate the methodological requirements for a risk framework of custodial operations and argue for the value of this type of risk model as complementary with cryptographic and…

Computers and Society · Computer Science 2021-04-29 Jacob Swambo , Antoine Poinsot

Permissionless blockchains such as Bitcoin have excelled at financial services. Yet, opportunistic traders extract monetary value from the mesh of decentralized finance (DeFi) smart contracts through so-called blockchain extractable value…

Cryptography and Security · Computer Science 2021-12-13 Kaihua Qin , Liyi Zhou , Arthur Gervais

This study investigates the influence of monetary policy and monetary policy uncertainties on Bitcoin returns, utilizing monthly data of BTC, and MPU from July 2010 to August 2023, and employing the Markov Switching Means VAR (MSM-VAR)…

Statistical Finance · Quantitative Finance 2023-11-21 Mohammadreza Mahmoudi

Proof-of-Work (PoW) is a popular consensus protocol used by Bitcoin since its inception. PoW has the well-known flaw of assigning all the reward to the single miner (or pool) that inserts the new block. This has the consequence of making…

Distributed, Parallel, and Cluster Computing · Computer Science 2022-07-13 Danilo Bazzanella , Andrea Gangemi

Selfish Mining is strategic rule-breaking to maximize rewards in proof-of-work protocols [3] and Markov Decision Processes (MDPs) are the preferred tool for finding optimal strategies in Bitcoin [4, 10] and similar linear chain protocols…

Cryptography and Security · Computer Science 2024-05-01 Patrik Keller

Mining fairness in blockchain refers to equality between the computational resources invested in mining and the block rewards received. There exists a dilemma wherein increasing the transaction processing capacity of a blockchain…

Cryptography and Security · Computer Science 2025-09-10 Akira Sakurai , Kazuyuki Shudo

Stratum, the de-facto mining communication protocol used by blockchain based cryptocurrency systems, enables miners to reliably and efficiently fetch jobs from mining pool servers. In this paper we exploit Stratum's lack of encryption to…

Cryptography and Security · Computer Science 2017-03-21 Ruben Recabarren , Bogdan Carbunar

Cryptocurrencies, especially Bitcoin (BTC), which comprise a new digital asset class, have drawn extraordinary worldwide attention. The characteristics of the cryptocurrency/BTC include a high level of speculation, extreme volatility and…

Statistical Finance · Quantitative Finance 2020-09-24 Ai Jun Hou , Weining Wang , Cathy Y. H. Chen , Wolfgang Karl Härdle

A proof of the security of the Bitcoin protocol is made rigorous, and simplified in certain parts. A computational model in which an adversary can delay transmission of blocks by time $\Delta$ is considered. The protocol is generalized to…

Cryptography and Security · Computer Science 2026-04-17 Christopher Blake , Chen Feng , Xuechao Wang , Qianyu Yu

This paper studies to what extent the cost of operating a proof-of-work blockchain is intrinsically linked to the cost of preventing attacks, and to what extent the underlying digital ledger security budgets are correlated with the…

General Economics · Economics 2021-02-17 Pavel Ciaian , d'Artis Kancs , Miroslava Rajcaniova

Most current assessments use ex post proxies that miss uncertainty and fail to consistently capture the rapid change in bitcoin mining. We introduce a unified, ex ante statistical model that derives expected return, downside risk, and…

Computational Engineering, Finance, and Science · Computer Science 2025-12-24 Yuting Cai , Ruthav Sadali , Korok Ray , Chao Tian

We study a robust, i.e. in presence of malicious participants, multi-agent multi-armed bandit problem where multiple participants are distributed on a fully decentralized blockchain, with the possibility of some being malicious. The rewards…

Machine Learning · Computer Science 2024-07-29 Mengfan Xu , Diego Klabjan

Proof-of-work (PoW) cryptocurrencies rely on a balance of security and fairness in order to maintain a sustainable ecosystem of miners and users. Users demand fast and consistent transaction confirmation, and in exchange drive the adoption…

Cryptography and Security · Computer Science 2023-06-22 Patrik Keller , Ben Glickenhaus , George Bissias , Gregory Griffith

While the literature features a number of proposals to defend against transaction manipulation attacks, existing proposals are still not integrated within large blockchains, such as Bitcoin, Ethereum, and Cardano. Instead, the user…

Cryptography and Security · Computer Science 2026-01-22 Jannik Albrecht , Ghassan Karame

Bitcoin is currently subject to a significant pay-for-speed trade-off. This is caused by lengthy and highly variable transaction confirmation times, especially during times of congestion. Users can reduce their transaction confirmation…

Probability · Mathematics 2024-02-28 Rowel Gündlach , Ivo V. Stoepker , Stella Kapodistria , Jacques A. C. Resing

Blockchains have popularized automated market makers (AMMs). An AMM exchange is an application running on a blockchain which maintains a pool of crypto-assets and automatically trades assets with users governed by some pricing function that…

Computer Science and Game Theory · Computer Science 2025-09-16 T-H. Hubert Chan , Ke Wu , Elaine Shi

Since Bitcoin first appeared on the scene in 2009, cryptocurrencies have become a worldwide phenomenon as important decentralized financial assets. Their decentralized nature, however, leads to notable volatility against traditional fiat…

Statistical Finance · Quantitative Finance 2024-10-23 Zeyd Boukhers , Azeddine Bouabdallah , Cong Yang , Jan Jürjens

Bitcoin was recently introduced as a peer-to-peer electronic currency in order to facilitate transactions outside the traditional financial system. The core of Bitcoin, the Blockchain, is the history of the transactions in the system…

Cryptography and Security · Computer Science 2017-05-04 Siamak Solat , Maria Potop-Butucaru