On bitcoin and red balloons

@inproceedings{Babaioff2012OnBA,
  title={On bitcoin and red balloons},
  author={Moshe Babaioff and Shahar Dobzinski and Sigal Oren and Aviv Zohar},
  booktitle={EC},
  year={2012}
}
Many large decentralized systems rely on information propagation to ensure their proper function. We examine a common scenario in which only participants that are aware of the information can compete for some reward, and thus informed participants have an incentive not to propagate information to others. One recent example in which such tension arises is the 2009 DARPA Network Challenge (finding red balloons). We focus on another prominent example: Bitcoin, a decentralized electronic currency… CONTINUE READING

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