Blockchain Without Waste: Proof-of-Stake

@article{Saleh2020BlockchainWW,
  title={Blockchain Without Waste: Proof-of-Stake},
  author={Fahad Saleh},
  journal={Information Systems \& Economics eJournal},
  year={2020}
}
  • Fahad Saleh
  • Published 7 July 2020
  • Mathematics
  • Information Systems & Economics eJournal
Abstract A blockchain constitutes a distributed ledger that records transactions across a network of agents. [] Key Result My work reveals the economic viability of permissionless blockchains.

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  • Sana NazS. Lee
  • Mathematics
    2020 Second International Conference on Blockchain Computing and Applications (BCCA)
  • 2020
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It is proved that stake concentration is encouraged in a finite staking pool PoS blockchain network, but continued consolidation among staking pools is limited and a stable equilibrium always exists where no staking Pool has incentive to deviate, and that lower pool fixed cost and higher transaction fee raise stable equilibrium pool number and lead to higher network decentralization level.
...

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“Ouroboros” is presented, the first blockchain protocol based on proof of stake with rigorous security guarantees and it is proved that, given this mechanism, honest behavior is an approximate Nash equilibrium, thus neutralizing attacks such as selfish mining.

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This work model the proof-of-work blockchain protocol as a stochastic game and analyse the equilibrium strategies of rational, strategic miners, identifying negative externalities implying that equilibrium investment in computing capacity is excessive.

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Proof-of-Work (PoW) blockchains possess at least two undesirable characteristics: exceptional price volatility and welfare impairment. Exceptional price volatility arises because PoW implements a

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The main results of this paper are several formal barriers to designing incentive-compatible proof-of-stake cryptocurrencies (that don't apply to proof- of-work).
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