“Zero Cost” Majority Attacks on Permissionless Proof of Work Blockchains

Published Online:https://doi.org/10.1287/mnsc.2023.02426

References

  • Amoussou-Guenou Y, Biais B, Potop-Butucaru M, Tucci-Piergiovanni S (2019) Rationals vs byzantines in consensus-based blockchains. Preprint, submitted February 21, https://arxiv.org/abs/1902.07895.Google Scholar
  • Auer R, Monnet C, Shin HS (2021) Permissioned distributed ledgers and the governance of money. Preprint, submitted February 17, https://dx.doi.org/10.2139/ssrn.3770075.Google Scholar
  • Bakos Y, Halaburda H (2021) Tradeoffs in permissioned vs permissionless blockchains: Trust and performance. Working paper, NYU Stern School of Business, New York.Google Scholar
  • Biais B, Bisiere C, Bouvard M, Casamatta C (2019) The blockchain folk theorem. Rev. Financial Stud. 32(5):1662–1715.CrossrefGoogle Scholar
  • Bonneau J (2016) Why buy when you can rent? Bribery attacks on bitcoin-style consensus. Clark J, Meiklejohn S, Ryan P, Wallach D, Brenner M, Rohloff K, eds. Proc. Internat. Conf. on Financial Cryptography and Data Security (Springer, Berlin), 19–26.Google Scholar
  • Budish EB (2022) The economic limits of bitcoin and anonymous, decentralized trust on the blockchain. Working paper, Becker Friedman Institute for Economics, University of Chicago, Chicago.Google Scholar
  • Chiu J, Koeppl TV (2022) The economics of cryptocurrency: Bitcoin and beyond. Canadian J. Econom. 55(4):1762–1798.CrossrefGoogle Scholar
  • Eyal I, Sirer EG (2018) Majority is not enough: Bitcoin mining is vulnerable. Comm. ACM 61(7):95–102.CrossrefGoogle Scholar
  • Gans JS (2023) The Economics of Blockchain Consensus (Palgrave, London).CrossrefGoogle Scholar
  • Gans JS, Gandal N (2021) Consensus mechanisms for the blockchain. The Palgrave Handbook of Technological Finance (Springer, Berlin, Heidelberg), 269–286.CrossrefGoogle Scholar
  • Gans JS, Halaburda H (2023) “Zero cost” majority attacks on permissionless blockchains. Working paper, NYU Stern School of Business, New York.Google Scholar
  • Garratt RJ, van Oordt MR (2023) Why fixed costs matter for proof-of-work–based cryptocurrencies. Management Sci. 69(11):6482–6507.LinkGoogle Scholar
  • Halaburda H, He Z, Li J (2021) An economic model of consensus on distributed ledgers. Technical report, National Bureau of Economic Research, Cambridge, MA.Google Scholar
  • Halaburda H, Sarvary M, Haeringer G (2022a) Beyond Bitcoin (Springer, Berlin).CrossrefGoogle Scholar
  • Halaburda H, Haeringer G, Gans J, Gandal N (2022b) The microeconomics of cryptocurrencies. J. Econom. Literature 60(3):971–1013.CrossrefGoogle Scholar
  • Huberman G, Leshno JD, Moallemi C (2021) Monopoly without a monopolist: An economic analysis of the bitcoin payment system. Rev. Econom. Stud. 88(6):3011–3040.CrossrefGoogle Scholar
  • Kwon Y, Kim H, Shin J, Kim Y (2019) Bitcoin vs. bitcoin cash: Coexistence or downfall of bitcoin cash? Proc. IEEE Sympos. Security and Privacy (IEEE, Piscataway, NJ), 935–951.Google Scholar
  • Leshno JD, Strack P (2020) Bitcoin: An axiomatic approach and an impossibility theorem. Amer. Econom. Rev. Insights 2(3):269–286.CrossrefGoogle Scholar
  • Ma J, Gans JS, Tourky R (2018) Market structure in bitcoin mining. Technical report, National Bureau of Economic Research, Cambridge, MA.Google Scholar
  • Moroz DJ, Aronoff DJ, Narula N, Parkes DC (2020) Double-spend counterattacks: Threat of retaliation in proof-of-work systems. Preprint, submitted February 25, https://arxiv.org/abs/2002.10736.Google Scholar
  • Nakamoto S (2008) Bitcoin: A peer-to-peer electronic cash system (Decentralized Business Review), https://bitcoin.org/bitcoin.pdf.Google Scholar
  • Ramos S, Pianese F, Leach T, Oliveras E (2021) A great disturbance in the crypto: Understanding cryptocurrency returns under attacks. Blockchain Res. Appl. 2(3):100021.CrossrefGoogle Scholar
  • Saleh F (2021) Blockchain without waste: Proof-of-stake. Rev. Financial Stud. 34(3):1156–1190.CrossrefGoogle Scholar
  • Shanaev S, Shuraeva A, Vasenin M, Kuznetsov M (2019) Cryptocurrency value and 51% attacks: Evidence from event studies. J. Alternative Investment 22(3):65–77.CrossrefGoogle Scholar
INFORMS site uses cookies to store information on your computer. Some are essential to make our site work; Others help us improve the user experience. By using this site, you consent to the placement of these cookies. Please read our Privacy Statement to learn more.