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Rationality-proof consensus: extended abstract
Actors can't do much to influence the reward.
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They can follow the protocol so it's back to their turn in a timely manner and they get the reward (that's good).
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They can't jump the queue - we enforce a strict round-robin rule: everyone gets their turn.
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Rationality-proof consensus: extended abstract
They can try to prevent other actors from joining - this is a topic on its own and we discuss it elsewhere.
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Second, preventing blocks from being added is something a rational actor might cheat for.
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Sending fake FREEZE messages doesn't work because it requires signatures from other actors.
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The actor could try sending fake TIMEOUT messages to speed up eviction of a leader that is being slow (or perhaps in a period of asynchrony).
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This also requires others to cooperate but the argument is more subtle because some non-malicious actors may genuinely observe a leader being slow.
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Rationality-proof consensus: extended abstract
We use the clock rate assumption here: the next leader will reject TIMEOUT messages if they arrive too early.
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Since the clock ratio is r, a message that arrives before T/r is too early.
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If a rational actor sends at time T then it's guaranteed that the new leader 9 will accept it.
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In fact this is the earliest time the new leader is guaranteed to accept it, so it's the optimal time to send (hence the algorithm is at equilibrium).
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Conversely, one might imagine rational actors trying to prevent others from proposing a block.
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However, actors take turns and they cannot end this round without suspect messages from other actors.
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Rationality-proof consensus: extended abstract
Once we've shown the algorithm is a Byzantine Nash Equilibrium, for the rest of the argument we can safely assume that rational actors will follow the protocol.
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Rationality-proof consensus: extended abstract
The key point of the freezing algorithm is that it will not result in two different blocks being decided because (a) if a block could be decided by the previous round, then that block is discovered by the freezing algorithm and proposed in the next round.
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(b) otherwise, the previous round will never decide a block.
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The first point follows from the fact that the DECIDE message need 2f+1 signatures: at least one of the signatories will be uncovered by the freezing algorithm and the block will be forwarded to the next round.
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The second point follows from the symmetric argument that FREEZE is sent to 2f+1 actors.
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If all accept it before seeing a WRITE, then there are not enough left to sign the DECIDE message so the previous round will not decide.
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Rationality-proof consensus: extended abstract
This algorithm allows the system to pick a block and prevents malicious or rational actors from preventing consensus or interfering with the turn order.
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Conclusion In this paper we argue for algorithms that tolerate both rational (self-interested) actors, and malicious (Byzantine) ones.
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These algorithms are called BAR-tolerant.
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When writing one, follow these three steps: clearly define the utility function for the rational actors, prove the algorithm is such that there is no benefit from unilaterally deviating (that is, it's a Byzantine Nash Equilibrium), then prove the algorithm correct assuming the rational actors follow the protocol.
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Rationality-proof consensus: extended abstract
We explain the gatekeeper attack, where members of a system selfishly decide to prevent newcomers from joining.
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Rationality-proof consensus: extended abstract
We sketch a BAR-tolerant blockchain protocol.
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It relies on a strict order to decide who gets to propose a new block (so there's no need to race to solve a crypto puzzle) and it relies on hardware ID tokens to make sure every computer is only represented at most once as a block proposer.
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It also defends against the gatekeeper attack.
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The BAR-tolerant approach is naturally also applicable to other blockchain algorithms.
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References [1] Amitanand S.
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Aiyer, Lorenzo Alvisi, Allen Clement, Mike Dahlin, Jean-Philippe Martin, and Carl Porth.
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2005.
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BAR fault tolerance for cooperative services.
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SIGOPS Oper.
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Syst.
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Rev.
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39, 5 (October 2005), 45-58.
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DOI: ​ https://doi.org/10.1145/1095809.1095816 [2] Bitcoin.org.
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2015.
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Some Miners Generating Invalid Blocks.
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https://bitcoin.org/en/alert/2015-07-04-spv-mining 10 [3] Bitcoin Wiki.
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Value overflow incident.
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​ https://en.bitcoin.it/wiki/Value_overflow_incident [4] Vitalik Buterin.
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2014.
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On Stake.
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​ https://blog.ethereum.org/2014/07/05/stake/ [5] Vitalik Buterin.
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2014.
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Slasher: A Punitive Proof-of-Stake Algorithm. https://blog.ethereum.org/2014/01/15/slasher-a-punitive-proof-of-stake-algorithm/ [6] Miles Carlsten, Harry Kalodner, S.
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Matthew Weinberg, and Arvind Narayanan.
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2016.
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On the Instability of Bitcoin Without the Block Reward. In ​ Proceedings of the 2016 ACM SIGSAC Conference on Computer and Communications Security ​ (CCS '16).
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ACM, New York, NY, USA, 154-167.
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DOI: ​ https://doi.org/10.1145/2976749.2978408 [7] Dave Gutteridge, Japanese Cryptocurrency Monacoin Hit by Selfish Mining Attack, CCN https://www.ccn.com/japanese-cryptocurrency-monacoin-hit-by-selfish-mining-attack/ ​ (retrieved 2018-10-16) [8] S.
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Micali, M.
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Rabin, S.
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Vadhan.
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1999.
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Verifiable random function.
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In ​ Proceedings of the 40th Annual Symposium on Foundations of Computer Science.
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[9] Josiah Wilmoth, Bitcoin Gold Hit by Double Spend Attack, Exchanges Lose Millions, CCN https://www.ccn.com/bitcoin-gold-hit-by-double-spend-attack-exchanges-lose-millions/ ​ (retrieved 2018-10-16) 11
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