Price manipulation in the Bitcoin ecosystem - ScienceDirect

An Analysis of Attacks on Blockchain Consensus

arXiv:1610.07985
Date: 2016-11-20
Author(s): George Bissias, Brian Neil Levine, A. Pinar Ozisik, Gavin Andresen

Link to Paper


Abstract
We present and validate a novel mathematical model of the blockchain mining process and use it to conduct an economic evaluation of the double-spend attack, which is fundamental to all blockchain systems. Our analysis focuses on the value of transactions that can be secured under a conventional double-spend attack, both with and without a concurrent eclipse attack. Our model quantifies the importance of several factors that determine the attack's success, including confirmation depth, attacker mining power, and any confirmation deadline set by the merchant. In general, the security of a transaction against a double-spend attack increases roughly logarithmically with the depth of the block, made easier by the increasing sum of coin turned-over (between individuals) in the blocks, but more difficult by the increasing proof of work required. In recent blockchain data, we observed a median block turnover value of 6 BTC. Based on this value, a merchant requiring a single confirmation is protected against only attackers that can increase the current mining power by 1% or less. However, similar analysis shows that a merchant that requires a much longer 72 confirmations (~12 hours) will eliminate all potential profit for any double-spend attacker adding mining power less than 40% of the current mining power.

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What is Shamir Backup? What is Litecoin  Re-upload The Fiat-Shamir Transform - Ron Rothblum IOHK  Consensus protocols - efficiency Bitcoin Q&A: Threshold signatures and Shamir secret sharing

Ron and Shamir's research, by contrast, analyzes transaction history to answer questions about how typical account holders use the Bitcoin system and how they acquire and spend the digital coin. Quantitative Analysis of the Full Bitcoin Transaction Graph Dorit Ron and Adi Shamir Department of Computer Science and Applied Mathematics, The Weizmann Institute of Science, Israel {dorit.ron,adi.shamir}@weizmann.ac.il Abstract. The Bitcoin scheme is a rare example of a large scale global Later in 2013, the Israeli scientists Dorit Ron and Adi Shamir highlighted Silk Road-connected Ross William Ulbricht as the conceivable individual behind the spread. The two specialists put together their doubts concerning an examination of the system of bitcoin exchanges. These charges were challenged and Ron and Shamir later withdrew their case. The fall was nearly as precipitous: the Mt. Gox exchange folded due to insolvency in early 2014 and it has taken more than three years for bitcoin to match this rise. 1.1. Why does Bitcoin manipulation matter? As this paper will show, the first time Bitcoin reached an exchange rate of more than $1,000, the rise was likely driven by manipulation. It's worth noting how Shamir's paper said there were multiple steps involved between what the paper assumed was the "Founder" and DPR: these steps could have just as easily included a transfer to a big exchange, and from that exchange to the Silk Road by a totally unrelated user.

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What is Shamir Backup?

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