Some algorithmic stablecoins have proposed incorporating price feeds by asking their token holders. In this post, we point out that this mechanism is broken because of a fundamental incentive misalignment.
Achieving true decentralization requires decentralized cryptography. CHURP is a cryptographic protocol for secret sharing in decentralized settings. In such a setting where nodes may come and go, traditional secret sharing (e.g., Shamir's) is no longer secure. Featuring several fundamental innovations, CHURP accomplishes the mission while being 2300x more efficient than previous schemes!
Suppose that N players share cryptocurrency using an M-of-N multisig scheme. If N-M+1 players disappear, the remaining ones have a problem: They've permanently lost their funds. In this blog, we propose a solution to this critical problem using the power of the trusted hardware.
Guest blogger Prof. Karen Levy describes how contracts often include terms that are unenforceable, purposefully vague, or never meant to be enforced, how this helps set expectations, and what this means for smart contracts.
We have been examining the state of the Bitcoin and Ethereum networks over time. In a recent study, we examine the level of decentralization in these two networks, with some interesting takeaways for the future.
Cryptocurrencies are vulnerable to attacks targeting the network routing layer. In this guest post, Apostolaki, Zohar and Vanbever show that BGP attacks are back, and this time, they have a high value target.
Evidently, a requirement for becoming a CEO at a Bitcoin exchange or payments company is to believe that your company has no power and works entirely at the discretion of the miners. I try once again to correct this myth.
I make the case that Bitcoin users have just as much of a say, or more, than all the miners combined. They wield this power through exchanges, and the exchanges need to live up to their responsibilities.
by Emin Gün Sirer on December 02, 2015 at 02:13 PM
Peter Tschipper has been looking into compressing the Bitcoin messages on the wire using generic compressors. In this post, I discuss why generic compressors will not work well with Bitcoin, make the case for a custom compressor, and suggest that we run a community challenge to develop the best compressor.
In a new analysis of Bitcoin mining, Ittay Eyal shows that the equilibrium between miners is unstable, and identifies a stable equilibrium that might, as a side effect, reduce the size of open, public mining pools.
by Ittay Eyal and
Emin Gün Sirer on June 18, 2014 at 02:03 PM
We outline a small change to the Bitcoin mining protocol that rules out big, public mining pools. It preserves the current investment in Bitcoin by both existing users and by existing miners. It presents a fix to GHash's recent 51% excursion.