DOUBLE SPEND RACES

DOI10.1142/S021902491850053XzbMATH Open1419.91669arXiv1702.02867MaRDI QIDQ4645331FDOQ4645331

Cyril Grunspan, Ricardo Pérez-Marco

Publication date: 10 January 2019

Published in: International Journal of Theoretical and Applied Finance (Search for Journal in Brave)

Abstract: We correct the double spend race analysis given in Nakamoto's foundational Bitcoin article and give a closed-form formula for the probability of success of a double spend attack using the Regularized Incomplete Beta Function. We give a proof of the exponential decay on the number of confirmations, often cited in the literature, and find an asymptotic formula. Larger number of confirmations are necessary compared to those given by Nakamoto. We also compute the probability conditional to the known validation time of the blocks. This provides a finer risk analysis than the classical one.

Full work available at URL: https://arxiv.org/abs/1702.02867

zbMATH Keywords

miningbitcoinblockchainproof-of-workdouble spendregularized incomplete beta function

Mathematics Subject Classification ID

Actuarial science and mathematical finance (91G99) Theory of data (68P99)

Cites Work

• Title not available (Why is that?)
• Some Elementary Inequalities Relating to the Gamma and Incomplete Gamma Function
• Bitcoin and decentralised trust protocols
• Asymptotic expansion Of the incomplete beta function for large values Of the first parameter

Cited In (6)

• ON PROFITABILITY OF NAKAMOTO DOUBLE SPEND
• Determining the number of confirmation blocks in a two-level blockchain with proof-of-proof consensus protocol for different consensus types in mainchain/sidechain to prevent double spend attack. I: PoS in mainchain and PoW in sidechain
• A mean field game approach to bitcoin mining
• BLOCKCHAIN DOUBLE-SPEND ATTACK DURATION
• Blockchain and cryptocurrencies: economic and financial research
• Cryptocurrency and double spending history: transactions with zero confirmation

Uses Software

• Digital Library of Mathematical Functions

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