65 Search Results for "Gramoli, Vincent"


Volume

OASIcs, Volume 97

3rd International Conference on Blockchain Economics, Security and Protocols (Tokenomics 2021)

Tokenomics 2021, November 18-19, 2021, New York University, USA (Virtual Conference)

Editors: Vincent Gramoli, Hanna Halaburda, and Rafael Pass

Volume

LIPIcs, Volume 217

25th International Conference on Principles of Distributed Systems (OPODIS 2021)

OPODIS 2021, December 13-15, 2021, Strasbourg, France

Editors: Quentin Bramas, Vincent Gramoli, and Alessia Milani

Volume

OASIcs, Volume 92

4th International Symposium on Foundations and Applications of Blockchain 2021 (FAB 2021)

FAB 2021, May 7, 2021, University of California, Davis, California, USA (Virtual Conference)

Editors: Vincent Gramoli and Mohammad Sadoghi

Document
Invited Talk
From Consensus Research to Redbelly Network Pty Ltd (Invited Talk)

Authors: Vincent Gramoli

Published in: LIPIcs, Volume 286, 27th International Conference on Principles of Distributed Systems (OPODIS 2023)


Abstract
Designing and implementing correctly a blockchain system requires collaborations across places and research fields. Redbelly, a company across Australia, India and USA, illustrates well this idea. It started in 2005 at OPODIS, where we published the Reconfigurable Distributed Storage to replace distributed participants offering a service without disrupting its availability. This line of work [V. Gramoli et al., 2021] was instrumental to reconfigure blockchains without introducing hard forks. The research on the consensus problem we initiated at IRISA [V. Gramoli, 2022] led to rethinking PBFT-like algorithms for the context of blockchain by getting rid of the leader that can act as the bottleneck of large networks [V. Gramoli and Q. Tang, 2023]. Our work on security led to disclosing vulnerabilities in Ethereum [Parinya Ekparinya et al., 2020] and then motivated us to formally verify blockchain consensus [Nathalie Bertrand et al., 2022]. Our work at the frontier of economics [Michael Spain et al., 2019] led us to prevent front-running attacks [Pouriya Zarbafian and Vincent Gramoli, 2023] and to incentivize rational players to behave [Alejandro Ranchal-Pedrosa and Vincent Gramoli, 2022]. Our system work at Cornell and then at EPFL was foundational in experimenting blockchains across the globe [Vincent Gramoli et al., 2023]. Although not anticipated at the time, this series of work progressively led the University of Sydney and CSIRO, and later Redbelly Network Pty Ltd, to design the Redbelly Blockchain [Tyler Crain et al., 2021; Deepal Tennakoon et al., 2023], the platform of choice for compliant asset tokenisation.

Cite as

Vincent Gramoli. From Consensus Research to Redbelly Network Pty Ltd (Invited Talk). In 27th International Conference on Principles of Distributed Systems (OPODIS 2023). Leibniz International Proceedings in Informatics (LIPIcs), Volume 286, pp. 1:1-1:2, Schloss Dagstuhl – Leibniz-Zentrum für Informatik (2024)


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@InProceedings{gramoli:LIPIcs.OPODIS.2023.1,
  author =	{Gramoli, Vincent},
  title =	{{From Consensus Research to Redbelly Network Pty Ltd}},
  booktitle =	{27th International Conference on Principles of Distributed Systems (OPODIS 2023)},
  pages =	{1:1--1:2},
  series =	{Leibniz International Proceedings in Informatics (LIPIcs)},
  ISBN =	{978-3-95977-308-9},
  ISSN =	{1868-8969},
  year =	{2024},
  volume =	{286},
  editor =	{Bessani, Alysson and D\'{e}fago, Xavier and Nakamura, Junya and Wada, Koichi and Yamauchi, Yukiko},
  publisher =	{Schloss Dagstuhl -- Leibniz-Zentrum f{\"u}r Informatik},
  address =	{Dagstuhl, Germany},
  URL =		{https://drops.dagstuhl.de/entities/document/10.4230/LIPIcs.OPODIS.2023.1},
  URN =		{urn:nbn:de:0030-drops-194915},
  doi =		{10.4230/LIPIcs.OPODIS.2023.1},
  annote =	{Keywords: Innovations, Commercialisation}
}
Document
Holistic Verification of Blockchain Consensus

Authors: Nathalie Bertrand, Vincent Gramoli, Igor Konnov, Marijana Lazić, Pierre Tholoniat, and Josef Widder

Published in: LIPIcs, Volume 246, 36th International Symposium on Distributed Computing (DISC 2022)


Abstract
Blockchain has recently attracted the attention of the industry due, in part, to its ability to automate asset transfers. It requires distributed participants to reach a consensus on a block despite the presence of malicious (a.k.a. Byzantine) participants. Malicious participants exploit regularly weaknesses of these blockchain consensus algorithms, with sometimes devastating consequences. In fact, these weaknesses are quite common and are well illustrated by the flaws in various blockchain consensus algorithms [Pierre Tholoniat and Vincent Gramoli, 2019]. Paradoxically, until now, no blockchain consensus has been holistically verified. In this paper, we remedy this paradox by model checking for the first time a blockchain consensus used in industry. We propose a holistic approach to verify the consensus algorithm of the Red Belly Blockchain [Tyler Crain et al., 2021], for any number n of processes and any number f < n/3 of Byzantine processes. We decompose directly the algorithm pseudocode in two parts - an inner broadcast algorithm and an outer decision algorithm - each modelled as a threshold automaton [Igor Konnov et al., 2017], and we formalize their expected properties in linear-time temporal logic. We then automatically check the inner broadcasting algorithm, under a carefully identified fairness assumption. For the verification of the outer algorithm, we simplify the model of the inner algorithm by relying on its proven properties. Doing so, we formally verify, for any parameter, not only the safety properties of the Red Belly Blockchain consensus but also its liveness in less than 70 seconds.

Cite as

Nathalie Bertrand, Vincent Gramoli, Igor Konnov, Marijana Lazić, Pierre Tholoniat, and Josef Widder. Holistic Verification of Blockchain Consensus. In 36th International Symposium on Distributed Computing (DISC 2022). Leibniz International Proceedings in Informatics (LIPIcs), Volume 246, pp. 10:1-10:24, Schloss Dagstuhl – Leibniz-Zentrum für Informatik (2022)


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@InProceedings{bertrand_et_al:LIPIcs.DISC.2022.10,
  author =	{Bertrand, Nathalie and Gramoli, Vincent and Konnov, Igor and Lazi\'{c}, Marijana and Tholoniat, Pierre and Widder, Josef},
  title =	{{Holistic Verification of Blockchain Consensus}},
  booktitle =	{36th International Symposium on Distributed Computing (DISC 2022)},
  pages =	{10:1--10:24},
  series =	{Leibniz International Proceedings in Informatics (LIPIcs)},
  ISBN =	{978-3-95977-255-6},
  ISSN =	{1868-8969},
  year =	{2022},
  volume =	{246},
  editor =	{Scheideler, Christian},
  publisher =	{Schloss Dagstuhl -- Leibniz-Zentrum f{\"u}r Informatik},
  address =	{Dagstuhl, Germany},
  URL =		{https://drops.dagstuhl.de/entities/document/10.4230/LIPIcs.DISC.2022.10},
  URN =		{urn:nbn:de:0030-drops-172019},
  doi =		{10.4230/LIPIcs.DISC.2022.10},
  annote =	{Keywords: Model checking, automata, logic, byzantine failure}
}
Document
Byzantine Consensus Is Θ(n²): The Dolev-Reischuk Bound Is Tight Even in Partial Synchrony!

Authors: Pierre Civit, Muhammad Ayaz Dzulfikar, Seth Gilbert, Vincent Gramoli, Rachid Guerraoui, Jovan Komatovic, and Manuel Vidigueira

Published in: LIPIcs, Volume 246, 36th International Symposium on Distributed Computing (DISC 2022)


Abstract
The Dolev-Reischuk bound says that any deterministic Byzantine consensus protocol has (at least) quadratic communication complexity in the worst case. While it has been shown that the bound is tight in synchronous environments, it is still unknown whether a consensus protocol with quadratic communication complexity can be obtained in partial synchrony. Until now, the most efficient known solutions for Byzantine consensus in partially synchronous settings had cubic communication complexity (e.g., HotStuff, binary DBFT). This paper closes the existing gap by introducing SQuad, a partially synchronous Byzantine consensus protocol with quadratic worst-case communication complexity. In addition, SQuad is optimally-resilient and achieves linear worst-case latency complexity. The key technical contribution underlying SQuad lies in the way we solve view synchronization, the problem of bringing all correct processes to the same view with a correct leader for sufficiently long. Concretely, we present RareSync, a view synchronization protocol with quadratic communication complexity and linear latency complexity, which we utilize in order to obtain SQuad.

Cite as

Pierre Civit, Muhammad Ayaz Dzulfikar, Seth Gilbert, Vincent Gramoli, Rachid Guerraoui, Jovan Komatovic, and Manuel Vidigueira. Byzantine Consensus Is Θ(n²): The Dolev-Reischuk Bound Is Tight Even in Partial Synchrony!. In 36th International Symposium on Distributed Computing (DISC 2022). Leibniz International Proceedings in Informatics (LIPIcs), Volume 246, pp. 14:1-14:21, Schloss Dagstuhl – Leibniz-Zentrum für Informatik (2022)


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@InProceedings{civit_et_al:LIPIcs.DISC.2022.14,
  author =	{Civit, Pierre and Dzulfikar, Muhammad Ayaz and Gilbert, Seth and Gramoli, Vincent and Guerraoui, Rachid and Komatovic, Jovan and Vidigueira, Manuel},
  title =	{{Byzantine Consensus Is \Theta(n²): The Dolev-Reischuk Bound Is Tight Even in Partial Synchrony!}},
  booktitle =	{36th International Symposium on Distributed Computing (DISC 2022)},
  pages =	{14:1--14:21},
  series =	{Leibniz International Proceedings in Informatics (LIPIcs)},
  ISBN =	{978-3-95977-255-6},
  ISSN =	{1868-8969},
  year =	{2022},
  volume =	{246},
  editor =	{Scheideler, Christian},
  publisher =	{Schloss Dagstuhl -- Leibniz-Zentrum f{\"u}r Informatik},
  address =	{Dagstuhl, Germany},
  URL =		{https://drops.dagstuhl.de/entities/document/10.4230/LIPIcs.DISC.2022.14},
  URN =		{urn:nbn:de:0030-drops-172059},
  doi =		{10.4230/LIPIcs.DISC.2022.14},
  annote =	{Keywords: Optimal Byzantine consensus, Communication complexity, Latency complexity}
}
Document
Dynamic Blockchain Sharding

Authors: Deepal Tennakoon and Vincent Gramoli

Published in: OASIcs, Volume 101, 5th International Symposium on Foundations and Applications of Blockchain 2022 (FAB 2022)


Abstract
By supporting decentralized applications (DApps), modern blockchains have become the technology of choice for the Web3, a decentralized way for people to interact with each other. As the popularity of DApps is growing, the challenge is now to allocate shard or subnetwork resources to face the associated demand of individual DApps. Unfortunately, most sharding proposals are inherently static as they cannot be adjusted at runtime. Given that blockchains are expected to run for years without interruption, these proposals are insufficient to cope with the upcoming demand. In this paper, we present dynamic blockchain sharding, a new way to create and close shards on-demand, and adjust their size at runtime without requiring to hard fork (i.e., creating duplicated instances of the same blockchain). The novel idea is to reconfigure sharding through dedicated smart contract invocations: not only does it strengthen the security of the sharding reconfiguration, it also makes it inherently transparent as any other blockchain data. Similarly to classic sharding, our protocol relies on randomness to cope with shard-takeover attacks and on rotating nodes to cope with the bribery of a slowly-adaptive adversary. By contrast, however, our protocol is ideally suited for open networks as it does not require fully synchronous communications. To demonstrate its efficiency, we deploy it in 10 countries over 5 continents and demonstrate that its performance increases quasi-linearly with the number of shards as it reaches close to 14,000 TPS on only 8 shards.

Cite as

Deepal Tennakoon and Vincent Gramoli. Dynamic Blockchain Sharding. In 5th International Symposium on Foundations and Applications of Blockchain 2022 (FAB 2022). Open Access Series in Informatics (OASIcs), Volume 101, pp. 6:1-6:17, Schloss Dagstuhl – Leibniz-Zentrum für Informatik (2022)


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@InProceedings{tennakoon_et_al:OASIcs.FAB.2022.6,
  author =	{Tennakoon, Deepal and Gramoli, Vincent},
  title =	{{Dynamic Blockchain Sharding}},
  booktitle =	{5th International Symposium on Foundations and Applications of Blockchain 2022 (FAB 2022)},
  pages =	{6:1--6:17},
  series =	{Open Access Series in Informatics (OASIcs)},
  ISBN =	{978-3-95977-248-8},
  ISSN =	{2190-6807},
  year =	{2022},
  volume =	{101},
  editor =	{Tucci-Piergiovanni, Sara and Crooks, Natacha},
  publisher =	{Schloss Dagstuhl -- Leibniz-Zentrum f{\"u}r Informatik},
  address =	{Dagstuhl, Germany},
  URL =		{https://drops.dagstuhl.de/entities/document/10.4230/OASIcs.FAB.2022.6},
  URN =		{urn:nbn:de:0030-drops-162733},
  doi =		{10.4230/OASIcs.FAB.2022.6},
  annote =	{Keywords: Reconfiguration, smart contract, transparency, shard}
}
Document
Complete Volume
OASIcs, Volume 97, Tokenomics 2021, Complete Volume

Authors: Vincent Gramoli, Hanna Halaburda, and Rafael Pass

Published in: OASIcs, Volume 97, 3rd International Conference on Blockchain Economics, Security and Protocols (Tokenomics 2021)


Abstract
OASIcs, Volume 97, Tokenomics 2021, Complete Volume

Cite as

3rd International Conference on Blockchain Economics, Security and Protocols (Tokenomics 2021). Open Access Series in Informatics (OASIcs), Volume 97, pp. 1-124, Schloss Dagstuhl – Leibniz-Zentrum für Informatik (2022)


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@Proceedings{gramoli_et_al:OASIcs.Tokenomics.2021,
  title =	{{OASIcs, Volume 97, Tokenomics 2021, Complete Volume}},
  booktitle =	{3rd International Conference on Blockchain Economics, Security and Protocols (Tokenomics 2021)},
  pages =	{1--124},
  series =	{Open Access Series in Informatics (OASIcs)},
  ISBN =	{978-3-95977-220-4},
  ISSN =	{2190-6807},
  year =	{2022},
  volume =	{97},
  editor =	{Gramoli, Vincent and Halaburda, Hanna and Pass, Rafael},
  publisher =	{Schloss Dagstuhl -- Leibniz-Zentrum f{\"u}r Informatik},
  address =	{Dagstuhl, Germany},
  URL =		{https://drops.dagstuhl.de/entities/document/10.4230/OASIcs.Tokenomics.2021},
  URN =		{urn:nbn:de:0030-drops-158965},
  doi =		{10.4230/OASIcs.Tokenomics.2021},
  annote =	{Keywords: OASIcs, Volume 97, Tokenomics 2021, Complete Volume}
}
Document
Front Matter
Front Matter, Table of Contents, Preface, Conference Organization

Authors: Vincent Gramoli, Hanna Halaburda, and Rafael Pass

Published in: OASIcs, Volume 97, 3rd International Conference on Blockchain Economics, Security and Protocols (Tokenomics 2021)


Abstract
Front Matter, Table of Contents, Preface, Conference Organization

Cite as

3rd International Conference on Blockchain Economics, Security and Protocols (Tokenomics 2021). Open Access Series in Informatics (OASIcs), Volume 97, pp. 0:i-0:x, Schloss Dagstuhl – Leibniz-Zentrum für Informatik (2022)


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@InProceedings{gramoli_et_al:OASIcs.Tokenomics.2021.0,
  author =	{Gramoli, Vincent and Halaburda, Hanna and Pass, Rafael},
  title =	{{Front Matter, Table of Contents, Preface, Conference Organization}},
  booktitle =	{3rd International Conference on Blockchain Economics, Security and Protocols (Tokenomics 2021)},
  pages =	{0:i--0:x},
  series =	{Open Access Series in Informatics (OASIcs)},
  ISBN =	{978-3-95977-220-4},
  ISSN =	{2190-6807},
  year =	{2022},
  volume =	{97},
  editor =	{Gramoli, Vincent and Halaburda, Hanna and Pass, Rafael},
  publisher =	{Schloss Dagstuhl -- Leibniz-Zentrum f{\"u}r Informatik},
  address =	{Dagstuhl, Germany},
  URL =		{https://drops.dagstuhl.de/entities/document/10.4230/OASIcs.Tokenomics.2021.0},
  URN =		{urn:nbn:de:0030-drops-158975},
  doi =		{10.4230/OASIcs.Tokenomics.2021.0},
  annote =	{Keywords: Front Matter, Table of Contents, Preface, Conference Organization}
}
Document
Invited Talk
Distributed Computing Meets Game Theory: Fault Tolerance and Implementation with Cheap Talk (Invited Talk)

Authors: Joseph Y. Halpern

Published in: OASIcs, Volume 97, 3rd International Conference on Blockchain Economics, Security and Protocols (Tokenomics 2021)


Abstract
Traditionally, work in distributed computing has divided the agents into "good guys" and "bad guys". The good guys follow the protocol; the bad guys do everything in their power to make sure it does not work. By way of contrast, game theory has focused on "rational" agents, who try to maximize their utilities. Here I try to combine these viewpoints. Specifically, following the work of Abraham et al. [I. Abraham et al., 2006], I consider (k,t)-robust protocols/strategies, which tolerate coalitions of rational players of size up to k and up to t malicious players. I focus in particular on the problem that economists have called implementing a mediator. That is, can the players in the system, just talking among themselves (using what economists call "cheap talk") simulate the effects of the mediator (see, e.g., [I. Barany, 1992; E. Ben-Porath, 2003; Forges, 1990; D. Gerardi, 2004; Y. Heller, 2005; A. Urbano and J. E. Vila, 2002; A. Urbano and J. E. Vila, 2004]). In computer science, this essentially amounts to multiparty computation [O. Goldreich et al., 1987; A. Shamir et al., 1981; A. Yao, 1982]. Ideas from cryptography and distributed computing allow us to prove results on how many agents are required to implement a (k,t)-robust mediator just using cheap talk. These results subsume (and, in some cases, correct) results from the game theory literature. The results of Abraham et al. [I. Abraham et al., 2006] were proved for what are called synchronous systems in the distributed computing community; this is also the case for all the results in the economics literature cited above. In synchronous systems, communication proceeds in atomic rounds, and all messages sent during round r are received by round r + 1. But many systems in the real world are asynchronous. In an asynchronous setting, there are no rounds; messages sent by the players may take arbitrarily long to get to their recipients. Markets and the internet are best viewed as asynchronous. Blockchain implementations assume partial synchrony, where there is an upper bound on how long messages take to arrive. The partial synchronous setting already shows some of the difficulty of moving away from synchrony: An agent i can wait to take its action until it receives a message from j (on which its action can depend). This cannot happen in a synchronous setting. Abraham, Dolev, Geffner, abnd Halpern [I. Abraham et al., 2019] extend the results on implementing mediators to the asynchronous setting.

Cite as

Joseph Y. Halpern. Distributed Computing Meets Game Theory: Fault Tolerance and Implementation with Cheap Talk (Invited Talk). In 3rd International Conference on Blockchain Economics, Security and Protocols (Tokenomics 2021). Open Access Series in Informatics (OASIcs), Volume 97, pp. 1:1-1:2, Schloss Dagstuhl – Leibniz-Zentrum für Informatik (2022)


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@InProceedings{halpern:OASIcs.Tokenomics.2021.1,
  author =	{Halpern, Joseph Y.},
  title =	{{Distributed Computing Meets Game Theory: Fault Tolerance and Implementation with Cheap Talk}},
  booktitle =	{3rd International Conference on Blockchain Economics, Security and Protocols (Tokenomics 2021)},
  pages =	{1:1--1:2},
  series =	{Open Access Series in Informatics (OASIcs)},
  ISBN =	{978-3-95977-220-4},
  ISSN =	{2190-6807},
  year =	{2022},
  volume =	{97},
  editor =	{Gramoli, Vincent and Halaburda, Hanna and Pass, Rafael},
  publisher =	{Schloss Dagstuhl -- Leibniz-Zentrum f{\"u}r Informatik},
  address =	{Dagstuhl, Germany},
  URL =		{https://drops.dagstuhl.de/entities/document/10.4230/OASIcs.Tokenomics.2021.1},
  URN =		{urn:nbn:de:0030-drops-158981},
  doi =		{10.4230/OASIcs.Tokenomics.2021.1},
  annote =	{Keywords: robust equilibrium, implementing mediators, asynchronous systems}
}
Document
General Congestion Attack on HTLC-Based Payment Channel Networks

Authors: Zhichun Lu, Runchao Han, and Jiangshan Yu

Published in: OASIcs, Volume 97, 3rd International Conference on Blockchain Economics, Security and Protocols (Tokenomics 2021)


Abstract
Payment Channel Networks (PCNs) have been a promising approach to scale blockchains. However, PCNs have limited liquidity: large-amount or multi-hop payments may fail. The major threat of PCNs liquidity is payment griefing, where the adversary who acts as the payee keeps withholding the payment, so that coins involved in the payment cannot be used for routing other payments before the payment expires. Payment griefing gives adversaries a chance to launch the congestion attack, where the adversary griefs a large number of payments and paralyses the entire PCN. Understanding congestion attacks, including their strategies and impact, is crucial for designing PCNs with better liquidity guarantees. However, existing research has only focused on the specific attacking strategies and specific aspects of their impact on PCNs. We fill this gap by studying the general congestion attack. Compared to existing attack strategies, in our framework each step serves an orthogonal purpose and is customisable, allowing the adversary to focus on different aspects of the liquidity. To evaluate the attack’s impact, we propose a generic method of quantifying PCNs' liquidity and effectiveness of the congestion attacks. We evaluate our general congestion attacks on Bitcoin’s Lightning Network, and show that with direct channels to 1.5% richest nodes, and ∼ 0.0096 BTC of cost, the adversary can launch a congestion attack that locks 47% (∼280 BTC) coins in the network; reduces success rate of payments by 16.0%∼60.0%; increases fee of payments by 4.5%∼16.0%; increases average attempts of payments by 42.0%∼115.3%; and increase the number of bankruptcy nodes (i.e., nodes with insufficient balance for making normal-size payments) by 26.6%∼109.4%, where the amounts of payments range from 0.001 to 0.019 BTC.

Cite as

Zhichun Lu, Runchao Han, and Jiangshan Yu. General Congestion Attack on HTLC-Based Payment Channel Networks. In 3rd International Conference on Blockchain Economics, Security and Protocols (Tokenomics 2021). Open Access Series in Informatics (OASIcs), Volume 97, pp. 2:1-2:15, Schloss Dagstuhl – Leibniz-Zentrum für Informatik (2022)


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@InProceedings{lu_et_al:OASIcs.Tokenomics.2021.2,
  author =	{Lu, Zhichun and Han, Runchao and Yu, Jiangshan},
  title =	{{General Congestion Attack on HTLC-Based Payment Channel Networks}},
  booktitle =	{3rd International Conference on Blockchain Economics, Security and Protocols (Tokenomics 2021)},
  pages =	{2:1--2:15},
  series =	{Open Access Series in Informatics (OASIcs)},
  ISBN =	{978-3-95977-220-4},
  ISSN =	{2190-6807},
  year =	{2022},
  volume =	{97},
  editor =	{Gramoli, Vincent and Halaburda, Hanna and Pass, Rafael},
  publisher =	{Schloss Dagstuhl -- Leibniz-Zentrum f{\"u}r Informatik},
  address =	{Dagstuhl, Germany},
  URL =		{https://drops.dagstuhl.de/entities/document/10.4230/OASIcs.Tokenomics.2021.2},
  URN =		{urn:nbn:de:0030-drops-158990},
  doi =		{10.4230/OASIcs.Tokenomics.2021.2},
  annote =	{Keywords: Blockchain, PCN, Congestion}
}
Document
Tuning PoW with Hybrid Expenditure

Authors: Itay Tsabary, Alexander Spiegelman, and Ittay Eyal

Published in: OASIcs, Volume 97, 3rd International Conference on Blockchain Economics, Security and Protocols (Tokenomics 2021)


Abstract
Proof of Work (PoW) is a Sybil-deterrence security mechanism. It introduces an external cost to system participation by requiring computational effort to perform actions. However, since its inception, a central challenge was to tune this cost. Initial designs for deterring spam email and DoS attacks applied overhead equally to honest participants and attackers. Requiring too little effort does not deter attacks, whereas too much encumbers honest participation. This might be the reason it was never widely adopted. Nakamoto overcame this trade-off in Bitcoin by distinguishing desired from malicious behavior and introducing internal rewards for the former. This mechanism gained popularity in securing permissionless cryptocurrencies, using virtual internally-minted tokens for rewards. However, in existing blockchain protocols the internal rewards directly compensate users for (almost) the same value of external expenses. Thus, as the token value soars, so does the PoW expenditure. Bitcoin PoW, for example, already expends as much electricity as Colombia or Switzerland. This amount of resource-guzzling is unsustainable, and hinders even wider adoption of these systems. As such, a prominent alternative named Proof of Stake (PoS) replaces the expenditure requirement with token possession. However, PoS is shun by many cryptocurrency projects, as it is only secure under qualitatively-different assumptions, and the resultant systems are not permissionless. In this work we present Hybrid Expenditure Blockchain (HEB), a novel PoW mechanism. HEB is a generalization of Nakamoto’s protocol that enables tuning the external expenditure by introducing a complementary internal-expenditure mechanism. Thus, for the first time, HEB decouples external expenditure from the reward value. We show a practical parameter choice by which HEB requires significantly less external consumption compare to Nakamoto’s protocol, its resilience against rational attackers is similar, and it retains the decentralized and permissionless nature of the system. Taking the Bitcoin ecosystem as an example, HEB cuts the electricity consumption by half.

Cite as

Itay Tsabary, Alexander Spiegelman, and Ittay Eyal. Tuning PoW with Hybrid Expenditure. In 3rd International Conference on Blockchain Economics, Security and Protocols (Tokenomics 2021). Open Access Series in Informatics (OASIcs), Volume 97, pp. 3:1-3:17, Schloss Dagstuhl – Leibniz-Zentrum für Informatik (2022)


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@InProceedings{tsabary_et_al:OASIcs.Tokenomics.2021.3,
  author =	{Tsabary, Itay and Spiegelman, Alexander and Eyal, Ittay},
  title =	{{Tuning PoW with Hybrid Expenditure}},
  booktitle =	{3rd International Conference on Blockchain Economics, Security and Protocols (Tokenomics 2021)},
  pages =	{3:1--3:17},
  series =	{Open Access Series in Informatics (OASIcs)},
  ISBN =	{978-3-95977-220-4},
  ISSN =	{2190-6807},
  year =	{2022},
  volume =	{97},
  editor =	{Gramoli, Vincent and Halaburda, Hanna and Pass, Rafael},
  publisher =	{Schloss Dagstuhl -- Leibniz-Zentrum f{\"u}r Informatik},
  address =	{Dagstuhl, Germany},
  URL =		{https://drops.dagstuhl.de/entities/document/10.4230/OASIcs.Tokenomics.2021.3},
  URN =		{urn:nbn:de:0030-drops-159008},
  doi =		{10.4230/OASIcs.Tokenomics.2021.3},
  annote =	{Keywords: Blockchain, Proof of work, Cryptocurrency, Environmental impact}
}
Document
On Cryptocurrency Wallet Design

Authors: Ittay Eyal

Published in: OASIcs, Volume 97, 3rd International Conference on Blockchain Economics, Security and Protocols (Tokenomics 2021)


Abstract
The security of cryptocurrency and decentralized blockchain-maintained assets relies on their owners safeguarding secrets, typically cryptographic keys. This applies equally to individuals keeping daily-spending amounts and to large asset management companies. Loss of keys and attackers gaining control of keys resulted in numerous losses of funds. The security of individual keys was widely studied with practical solutions available, from mnemonic phrases to dedicated hardware. There are also techniques for securing funds by requiring combinations of multiple keys. However, to the best of our knowledge, a crucial question was never addressed: How is wallet security affected by the number of keys, their types, and how they are combined? This is the focus of this work. We present a model where each key has certain probabilities for being safe, lost, leaked, or stolen (available only to an attacker). The number of possible wallets for a given number of keys is the Dedekind number, prohibiting an exhaustive search with many keys. Nonetheless, we bound optimal-wallet failure probabilities with an evolutionary algorithm. We evaluate the security (complement of failure probability) of wallets based on the number and types of keys used. Our analysis covers a wide range of settings and reveals several surprises. The failure probability general trend drops exponentially with the number of keys, but has a strong dependency on its parity. In many cases, but not always, heterogeneous keys (not all with the same fault probabilities) allow for superior wallets than homogeneous keys. Nonetheless, in the case of 3 keys, the common practice of requiring any pair is optimal in many settings. Our formulation of the problem and initial results reveal several open questions, from user studies of key fault probabilities to finding optimal wallets with very large numbers of keys. But they also have an immediate practical outcome, informing cryptocurrency users on optimal wallet design.

Cite as

Ittay Eyal. On Cryptocurrency Wallet Design. In 3rd International Conference on Blockchain Economics, Security and Protocols (Tokenomics 2021). Open Access Series in Informatics (OASIcs), Volume 97, pp. 4:1-4:16, Schloss Dagstuhl – Leibniz-Zentrum für Informatik (2022)


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@InProceedings{eyal:OASIcs.Tokenomics.2021.4,
  author =	{Eyal, Ittay},
  title =	{{On Cryptocurrency Wallet Design}},
  booktitle =	{3rd International Conference on Blockchain Economics, Security and Protocols (Tokenomics 2021)},
  pages =	{4:1--4:16},
  series =	{Open Access Series in Informatics (OASIcs)},
  ISBN =	{978-3-95977-220-4},
  ISSN =	{2190-6807},
  year =	{2022},
  volume =	{97},
  editor =	{Gramoli, Vincent and Halaburda, Hanna and Pass, Rafael},
  publisher =	{Schloss Dagstuhl -- Leibniz-Zentrum f{\"u}r Informatik},
  address =	{Dagstuhl, Germany},
  URL =		{https://drops.dagstuhl.de/entities/document/10.4230/OASIcs.Tokenomics.2021.4},
  URN =		{urn:nbn:de:0030-drops-159012},
  doi =		{10.4230/OASIcs.Tokenomics.2021.4},
  annote =	{Keywords: cryptocurrency, wallet, key-management, authentication}
}
Document
Secure Computation with Non-Equivalent Penalties in Constant Rounds

Authors: Takeshi Nakai and Kazumasa Shinagawa

Published in: OASIcs, Volume 97, 3rd International Conference on Blockchain Economics, Security and Protocols (Tokenomics 2021)


Abstract
It is known that Bitcoin enables to achieve fairness in secure computation by imposing a monetary penalty on adversarial parties. This functionality is called secure computation with penalties. Bentov and Kumaresan (Crypto 2014) showed that it could be realized with O(n) rounds and O(n) broadcasts for any function, where n is the number of parties. Kumaresan and Bentov (CCS 2014) posed an open question: "Is it possible to design secure computation with penalties that needs only O(1) rounds and O(n) broadcasts?" In this work, we introduce secure computation with non-equivalent penalties, and design a protocol achieving this functionality with O(1) rounds and O(n) broadcasts only. The new functionality is the same as secure computation with penalties except that every honest party receives more than a predetermined amount of compensation while the previous one requires that every honest party receives the same amount of compensation. In particular, both are the same if all parties behave honestly. Thus, our result gives a partial answer to the open problem with a slight and natural modification of functionality.

Cite as

Takeshi Nakai and Kazumasa Shinagawa. Secure Computation with Non-Equivalent Penalties in Constant Rounds. In 3rd International Conference on Blockchain Economics, Security and Protocols (Tokenomics 2021). Open Access Series in Informatics (OASIcs), Volume 97, pp. 5:1-5:16, Schloss Dagstuhl – Leibniz-Zentrum für Informatik (2022)


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@InProceedings{nakai_et_al:OASIcs.Tokenomics.2021.5,
  author =	{Nakai, Takeshi and Shinagawa, Kazumasa},
  title =	{{Secure Computation with Non-Equivalent Penalties in Constant Rounds}},
  booktitle =	{3rd International Conference on Blockchain Economics, Security and Protocols (Tokenomics 2021)},
  pages =	{5:1--5:16},
  series =	{Open Access Series in Informatics (OASIcs)},
  ISBN =	{978-3-95977-220-4},
  ISSN =	{2190-6807},
  year =	{2022},
  volume =	{97},
  editor =	{Gramoli, Vincent and Halaburda, Hanna and Pass, Rafael},
  publisher =	{Schloss Dagstuhl -- Leibniz-Zentrum f{\"u}r Informatik},
  address =	{Dagstuhl, Germany},
  URL =		{https://drops.dagstuhl.de/entities/document/10.4230/OASIcs.Tokenomics.2021.5},
  URN =		{urn:nbn:de:0030-drops-159026},
  doi =		{10.4230/OASIcs.Tokenomics.2021.5},
  annote =	{Keywords: Secure computation, Fairness, Bitcoin}
}
Document
Invited Talk
Dynamic Posted-Price Mechanisms for the Blockchain Transaction Fee Market (Invited Talk)

Authors: Matheus V. X. Ferreira, Daniel J. Moroz, David C. Parkes, and Mitchell Stern

Published in: OASIcs, Volume 97, 3rd International Conference on Blockchain Economics, Security and Protocols (Tokenomics 2021)


Abstract
In recent years, prominent blockchain systems such as Bitcoin and Ethereum have experienced explosive growth in transaction volume, leading to frequent surges in demand for limited block space and causing transaction fees to fluctuate by orders of magnitude. Existing systems sell space using first-price auctions; however, users find it difficult to estimate how much they need to bid in order to get their transactions accepted onto the chain. If they bid too low, their transactions can have long confirmation times. If they bid too high, they pay larger fees than necessary. In light of these issues, new transaction fee mechanisms have been proposed, most notably EIP-1559, aiming to provide better usability. EIP-1559 is a history-dependent mechanism that relies on block utilization to adjust a base fee. We propose an alternative design - a dynamic posted-price mechanism - which uses not only block utilization but also observable bids from past blocks to compute a posted price for subsequent blocks. We show its potential to reduce price volatility by providing examples for which the prices of EIP-1559 are unstable while the prices of the proposed mechanism are stable. More generally, whenever the demand for the blockchain stabilizes, we ask if our mechanism is able to converge to a stable state. Our main result provides sufficient conditions in a probabilistic setting for which the proposed mechanism is approximately welfare optimal and the prices are stable. Our main technical contribution towards establishing stability is an iterative algorithm that, given oracle access to a Lipschitz continuous and strictly concave function f, converges to a fixed point of f.

Cite as

Matheus V. X. Ferreira, Daniel J. Moroz, David C. Parkes, and Mitchell Stern. Dynamic Posted-Price Mechanisms for the Blockchain Transaction Fee Market (Invited Talk). In 3rd International Conference on Blockchain Economics, Security and Protocols (Tokenomics 2021). Open Access Series in Informatics (OASIcs), Volume 97, p. 6:1, Schloss Dagstuhl – Leibniz-Zentrum für Informatik (2022)


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@InProceedings{ferreira_et_al:OASIcs.Tokenomics.2021.6,
  author =	{Ferreira, Matheus V. X. and Moroz, Daniel J. and Parkes, David C. and Stern, Mitchell},
  title =	{{Dynamic Posted-Price Mechanisms for the Blockchain Transaction Fee Market}},
  booktitle =	{3rd International Conference on Blockchain Economics, Security and Protocols (Tokenomics 2021)},
  pages =	{6:1--6:1},
  series =	{Open Access Series in Informatics (OASIcs)},
  ISBN =	{978-3-95977-220-4},
  ISSN =	{2190-6807},
  year =	{2022},
  volume =	{97},
  editor =	{Gramoli, Vincent and Halaburda, Hanna and Pass, Rafael},
  publisher =	{Schloss Dagstuhl -- Leibniz-Zentrum f{\"u}r Informatik},
  address =	{Dagstuhl, Germany},
  URL =		{https://drops.dagstuhl.de/entities/document/10.4230/OASIcs.Tokenomics.2021.6},
  URN =		{urn:nbn:de:0030-drops-159039},
  doi =		{10.4230/OASIcs.Tokenomics.2021.6},
  annote =	{Keywords: Blockchain, Posted-price mechanism, Credible, Incentive compatibility, Transaction fee market, first-price auction, EIP-1559}
}
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