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Does the proof-of-work protocol serve its intended purpose of supporting decentralized cryptocurrency mining? To address this question, we develop a game-theoretical model where miners first invest in hardware to improve the efficiency of…

Trading and Market Microstructure · Quantitative Finance 2021-06-21 Agostino Capponi , Sveinn Olafsson , Humoud Alsabah

To address the large amount of energy wasted by blockchains, we propose a decentralized consensus protocol for blockchains in which the computation can be used to search for good approximate solutions to any optimization problem. Our…

Distributed, Parallel, and Cluster Computing · Computer Science 2019-12-03 Naoki Shibata

We analyze the economic incentives generated by the proof-of-stake mechanism discussed in the Ethereum Casper upgrade proposal. Compared with proof-of-work, proof-of-stake has a different cost structure for attackers. In Budish (2018),…

Cryptography and Security · Computer Science 2018-07-26 George Gui , Ali Hortacsu , Jose Tudon

Blockchain is an essentially distributed database recording all transactions or digital events among participating parties. Each transaction in the records is approved and verified by consensus of the participants in the system that…

Distributed, Parallel, and Cluster Computing · Computer Science 2023-07-07 Jie You

In a Proof-of-Work blockchain such as Bitcoin mining hashrate is increasing in the block reward. An increase in hashrate reduces network vulnerability to attack (a reduction in security cost) while increasing carbon emissions and…

Cryptography and Security · Computer Science 2025-08-25 Daniel Aronoff

The blocks in the Bitcoin blockchain record the amount of work W that went into creating them through proofs of work. When honest parties control a majority of the work, consensus is achieved by picking the chain with the highest recorded…

Cryptography and Security · Computer Science 2025-08-05 Mirza Ahad Baig , Christoph U. Günther , Krzysztof Pietrzak

Blockchain applications that rely on the Proof-of-Work (PoW) have increasingly become energy inefficient with a staggering carbon footprint. In contrast, energy-efficient alternative consensus protocols such as Proof-of-Stake (PoS) may…

Cryptography and Security · Computer Science 2021-01-05 Muhammad Saad , Zhan Qin , Kui Ren , DaeHun Nyang , David Mohaisen

A hard-fork reconfiguration of the peer to peer Bitcoin network is described that substitutes tamper-evident logs and proof-of-stake consensus for proof-of-work consensus. The block creation rewards and transaction fees are reallocated to…

Computers and Society · Computer Science 2014-05-23 Stephen L. Reed

Blockchain, the technology behind the popular Bitcoin, is considered a "security by design" system as it is meant to create security among a group of distrustful parties yet without a central trusted authority. The security of blockchain…

Cryptography and Security · Computer Science 2020-09-02 Yang Xiao , Ning Zhang , Wenjing Lou , Y. Thomas Hou

Selfish mining is strategic rule-breaking to maximize rewards in proof-of-work protocols. Markov Decision Processes (MDPs) are the preferred tool for finding optimal strategies in Bitcoin and similar linear chain protocols. Protocols…

Cryptography and Security · Computer Science 2025-06-24 Patrik Keller

With the increasing adoption of decentralized information systems based on a variety of permissionless blockchain networks, the choice of consensus mechanism is at the core of many controversial discussions. Ethereum's recent transition…

Cryptography and Security · Computer Science 2024-02-01 Iván Abellán Álvarez , Vincent Gramlich , Johannes Sedlmeir

In an emerging computing paradigm, computational capabilities, from processing power to storage capacities, are offered to users over communication networks as a cloud-based service. There, demanding computations are outsourced in order to…

Symbolic Computation · Computer Science 2018-07-24 Jean-Guillaume Dumas

Most state machine replication protocols are either based on the 40-years-old Byzantine Fault Tolerance (BFT) theory or the more recent Nakamoto's longest chain design. Longest chain protocols, designed originally in the Proof-of-Work (PoW)…

Cryptography and Security · Computer Science 2020-11-24 Songze Li , David Tse

The idea of security sharing goes back to Nakamoto's introduction of merge mining, a technique that enables Bitcoin miners to reuse their hash power to bootstrap and secure other Proof-of-Work (PoW) blockchains. However, with the rise of…

Cryptography and Security · Computer Science 2026-05-20 Xinshu Dong , Orfeas Stefanos Thyfronitis Litos , Ertem Nusret Tas , David Tse , Robin Linus Woll , Lei Yang , Mingchao Yu

Mining is a central operation of all proof-of-work (PoW) based cryptocurrencies. The vast majority of miners today participate in "mining pools" instead of "solo mining" in order to lower risk and achieve a more steady income. However, this…

Computational Engineering, Finance, and Science · Computer Science 2022-12-15 Panagiotis Chatzigiannis , Foteini Baldimtsi , Igor Griva , Jiasun Li

The Metaverse is rapidly evolving, bringing us closer to its imminent reality. However, the widespread adoption of this new automated technology poses significant research challenges in terms of authenticity, integrity, interoperability,…

Cryptography and Security · Computer Science 2023-07-21 Khadija Manzoor , Umara Noor , Zahid Rashid

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

We propose a proof-of-work algorithm that rewards blockchain miners for using computational resources to solve NP-complete puzzles. The resulting blockchain will publicly store and improve solutions to problems with real world applications…

Distributed, Parallel, and Cluster Computing · Computer Science 2017-09-05 Carlos G. Oliver , Alessandro Ricottone , Pericles Philippopoulos

Blockchain protocols differ in fundamental ways, including the mechanics of selecting users to produce blocks (e.g., proof-of-work vs. proof-of-stake) and the method to establish consensus (e.g., longest chain rules vs. BFT-inspired…

Distributed, Parallel, and Cluster Computing · Computer Science 2020-06-19 Andrew Lewis-Pye , Tim Roughgarden

Zero-Knowledge Proof-of-Identity from trusted public certificates (e.g., national identity cards and/or ePassports; eSIM) is introduced here to permissionless blockchains in order to remove the inefficiencies of Sybil-resistant mechanisms…

Cryptography and Security · Computer Science 2024-09-17 David Cerezo Sánchez
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