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While many distributed consensus protocols provide robust liveness and consistency guarantees under the presence of malicious actors, quantitative estimates of how economic incentives affect security are few and far between. In this paper,…

Cryptography and Security · Computer Science 2020-06-18 Tarun Chitra , Monica Quaintance , Stuart Haber , Will Martino

This paper introduces EarthOL, a novel consensus protocol that attempts to replace computational waste in blockchain systems with verifiable human contributions within bounded domains. While recognizing the fundamental impossibility of…

Cryptography and Security · Computer Science 2025-05-28 Jiaxiong He

We analyze the first and second moment risk premia in the Bitcoin market based on options and realized returns and contrast them to the premia embedded in the main US stock index market. First, Bitcoin is much more volatile and has a higher…

General Economics · Economics 2025-08-04 Caio Almeida , Maria Grith , Ratmir Miftachov , Zijin Wang

Founded in 2017, Algorand is one of the world's first carbon-negative, public blockchains inspired by proof of stake. Algorand uses a Byzantine agreement protocol to add new blocks to the blockchain. The protocol can tolerate malicious…

Computer Science and Game Theory · Computer Science 2023-02-23 Maizi Liao , Wojciech Golab , Seyed Majid Zahedi

In this paper we describe the various scoring systems used to calculate rewards of participants in Bitcoin pooled mining, explain the problems each were designed to solve and analyze their respective advantages and disadvantages.

Distributed, Parallel, and Cluster Computing · Computer Science 2011-12-22 Meni Rosenfeld

Optimistic responsiveness -- the ability of a consensus protocol to operate at the speed of the network -- is widely used in consensus protocol design to optimize latency and throughput. However, blockchain applications incentivize…

Computer Science and Game Theory · Computer Science 2025-10-30 Kaya Alpturer , Kushal Babel , Aditya Saraf

Bitcoin is a "crypto currency", a decentralized electronic payment scheme based on cryptography which has recently gained excessive popularity. Scientific research on bitcoin is less abundant. A paper at Financial Cryptography 2012…

Cryptography and Security · Computer Science 2014-04-11 Nicolas T. Courtois , Marek Grajek , Rahul Naik

In the light of the recent fame of Blockchain technologies, numerous proposals and projects aiming at better practical viability have emerged. However, formally assessing their particularities and benefits has proven to be a difficult task.…

Cryptography and Security · Computer Science 2019-06-13 Antoine Durand , Elyes Ben-Hamida , David Leporini , Gérard Memmi

This study evaluates the performance of 41 machine learning models, including 21 classifiers and 20 regressors, in predicting Bitcoin prices for algorithmic trading. By examining these models under various market conditions, we highlight…

Trading and Market Microstructure · Quantitative Finance 2024-07-29 Abdul Jabbar , Syed Qaisar Jalil

The Bitcoin transaction graph is a public data structure organized as transactions between addresses, each associated with a logical entity. In this work, we introduce a complete probabilistic model of the Bitcoin Blockchain. We first…

Cryptography and Security · Computer Science 2018-12-14 Marc Jourdan , Sebastien Blandin , Laura Wynter , Pralhad Deshpande

Censorship resistance with short-term inclusion guarantees is an important feature of decentralized systems, missing from many state-of-the-art and even deployed consensus protocols. In leader-based protocols the leader arbitrarily selects…

Distributed, Parallel, and Cluster Computing · Computer Science 2025-08-19 Orestis Alpos , Bernardo David , Nikolas Kamarinakis , Dionysis Zindros

Over 900 million Bitcoin transactions have been recorded, posing considerable challenges for machine learning in terms of computation time and maintaining prediction accuracy. We propose an innovative approach using quantum-inspired…

Quantum Physics · Physics 2024-11-26 Ming-Fong Sie , Yen-Jui Chang , Chien-Lung Lin , Ching-Ray Chang , Shih-Wei Liao

The distribution of consensus power is a cornerstone of decentralisation, influencing the security, resilience, and fairness of blockchain networks while ensuring equitable impact among participants. This study provides a rigorous…

Cryptography and Security · Computer Science 2025-06-18 Kamil Tylinski , Abylay Satybaldy , Paolo Tasca

Over the past decade, the Bitcoin P2P network protocol has become a reference model for all modern cryptocurrencies. While nodes in this network are known, the connections among them are kept hidden, as it is commonly believed that this…

Cryptography and Security · Computer Science 2021-07-28 Federico Franzoni , Xavier Salleras , Vanesa Daza

Bitcoin demonstrated the possibility of a financial ledger that operates without the need for a trusted central authority. However, concerns persist regarding its security and considerable energy consumption. We assess the consensus…

Computer Science and Game Theory · Computer Science 2025-03-04 Jacob D. Leshno , Elaine Shi , Rafael Pass

Since its advent in 2009, Bitcoin (BTC) has garnered increasing attention from both academia and industry. However, due to the massive transaction volume, no systematic study has quantitatively measured the asset decentralization degree…

Statistical Finance · Quantitative Finance 2024-11-22 Ling Cheng , Qian Shao , Fengzhu Zeng , Feida Zhu

A decentralized blockchain is a distributed ledger that is often used as a platform for exchanging goods and services. This ledger is maintained by a network of nodes that obeys a set of rules, called a consensus protocol, which helps to…

Optimization and Control · Mathematics 2022-01-03 Lucy Klinger , Lei Zhang , Zhennan Zhou

Blockchain consensus mechanisms must balance security, decentralization, and efficiency while ensuring fair participation. Proof of Team Sprint (PoTS) is a cooperative consensus mechanism designed to address the energy inefficiencies and…

Distributed, Parallel, and Cluster Computing · Computer Science 2025-03-26 Naoki Yonezawa

Bitcoin is a decentralized crypto-currency, and an accompanying protocol, created in 2008. Bitcoin nodes continuously generate and propagate blocks---collections of newly approved transactions that are added to Bitcoin's ledger. Block…

Cryptography and Security · Computer Science 2015-07-24 Ayelet Sapirshtein , Yonatan Sompolinsky , Aviv Zohar

Decentralized storage is one of the most natural applications built on blockchains and a central component of the Web3 ecosystem. Yet despite a decade of active development -- from IPFS and Filecoin to more recent entrants -- most of these…

Computer Science and Game Theory · Computer Science 2025-10-15 Michael Crystal , Guy Goren , Scott Duke Kominers