A game-theoretic analysis of cross-ledger swaps with packetized payments

DOI10.1007/978-3-662-63958-0_16MaRDI QIDQ2670840zbMATH OpenOpenAlexFDO

Authors Alevtina Dubovitskaya, Damien Ackerer, Jiahua Xu

Publication date 1 June 2022

Full work available at URL https://arxiv.org/abs/2103.02056

zbMATH Keywords

atomic swapsblockchainpacketized payments

Mathematics Subject Classification ID

Games in extensive form (91A18) Applications of game theory (91A80) Derivative securities (option pricing, hedging, etc.) (91G20)

Abstract: We propose a game-theoretic framework to study the outcomes of packetized payments, a cross-ledger transaction protocol, with strategic and possibly malicious agents. We derive the transaction failure rate and demonstrate that without disciplinary mechanisms, packetized payments are likely to be incomplete. Our analysis suggests that collateral deposits can prevent malicious agents from taking advantage of the protocol. We further infer that the deposit amount should depend on the underlying asset price volatility or that it should be dynamically adjusted as the price changes.

Recommendations

• Decentralized privacy-preserving netting protocol on blockchain for payment systems
• A search-theoretic model of double-spending fraud
• Ride the lightning: the game theory of payment channels
• Monopoly without a monopolist: an economic analysis of the bitcoin payment system
• Strategic alliance for blockchain governance game

Cites work

• A course in game theory.
• Atomic Cross-Chain Swaps
• Games of perfect information, predatory pricing and the chain-store paradox

Cited in

(7)

• Establishing cryptocurrency equilibria through game theory
• A search-theoretic model of double-spending fraud
• Strategic alliance for blockchain governance game
• Promise: leveraging future gains for collateral reduction
• ABSNFT: securitization and repurchase scheme for non-fungible tokens based on game theoretical analysis
• Brief announcement: Game theoretical framework for analyzing blockchains robustness
• Atomic cross-chain swaps with improved space and local time complexity

Describes a project that uses

Uses Software

• GitHub

This page was built for publication: A game-theoretic analysis of cross-ledger swaps with packetized payments

Report a bug (only for logged in users!)Click here to report a bug for this page (MaRDI item Q2670840)