PDF Publication Title:
Text from PDF Page: 016
buyer keeps his original balances and the goods while the seller will be left empty handed. In response, the seller can choose to postpone the delivery of the goods and wait for N confirmations. This confirmation lag can potentially deter double spending by the buyer. The idea is that, to undo a transaction with a confirmation lag of N subperiods, a dishonest buyer needs to win the mining game N + 1 times in a row. As the number of lags increases, the total PoW required to revoke a transfer is increasing, making it more costly for a buyer to double spend. Furthermore, secret mining is deterred by miners’ investments in computing power MQ which, according to Lemma 1, is increasing in the reward R. We look next into the incentives to double spend and call an offer (x,d,N) double spending proof (DS-proof) if the buyer has no incentive to engage in double spending in subperiod 0 after the acceptance of the offer. 3.4 Double Spending Proof Contracts Consider then a trade with the terms (x,d,N). The buyer will receive the goods in subperiod N when exactly N confirmations of the payment d have been observed in the Blockchain. To double spend, a buyer can secretly mine an alternative history to undo his payment after he has received the goods. This implies that the double spender needs to be the first one who solves the PoW problem for N + 1 consecutive subperiods; i.e., from subperiod 0 to subperiod N . For each of the first N subperiods, the buyer does not broadcast the new block immediately, so that some other miners will update the Blockchain and confirm his payment to the seller. The buyer broadcasts his secretly mined blockchain only after he receives the goods and solves the N + 1th block. When the double spending attack succeeds, the original payment is cancelled and the N + 1 rewards will be given to the buyer (see Figure 3.2). Note first that the quantity of good x being exchanged does not directly matter for a double spending attack, as it neither changes the payoffs, nor the incentives to engage in an attack. We consider first subperiod N where the seller delivers his goods. Conditional on having been successful N times with secret mining20, a buyer can now double spend if successful with mining a new block in subperiod N. His expected payoff from investing qN is given by ρ(qN)β[d+(N +1)R]−qN. (9) 20We implicitly assume here that once a buyer starts a double spending attack, he does not stop after wining a block before subperiod N. As shown in the Appendix, this is without loss of generality because, if a buyer decides to double spend, it is not optimal to quit after winning some consecutive blocks before subperiod N. 16PDF Image | The Economics of Cryptocurrencies Bitcoin and Beyond
PDF Search Title:
The Economics of Cryptocurrencies Bitcoin and BeyondOriginal File Name Searched:
chiu_paper.pdfDIY PDF Search: Google It | Yahoo | Bing
NFT (Non Fungible Token): Buy our tech, design, development or system NFT and become part of our tech NFT network... More Info
IT XR Project Redstone NFT Available for Sale: NFT for high tech turbine design with one part 3D printed counter-rotating energy turbine. Be part of the future with this NFT. Can be bought and sold but only one design NFT exists. Royalties go to the developer (Infinity) to keep enhancing design and applications... More Info
Infinity Turbine IT XR Project Redstone Design: NFT for sale... NFT for high tech turbine design with one part 3D printed counter-rotating energy turbine. Includes all rights to this turbine design, including license for Fluid Handling Block I and II for the turbine assembly and housing. The NFT includes the blueprints (cad/cam), revenue streams, and all future development of the IT XR Project Redstone... More Info
Infinity Turbine ROT Radial Outflow Turbine 24 Design and Worldwide Rights: NFT for sale... NFT for the ROT 24 energy turbine. Be part of the future with this NFT. This design can be bought and sold but only one design NFT exists. You may manufacture the unit, or get the revenues from its sale from Infinity Turbine. Royalties go to the developer (Infinity) to keep enhancing design and applications... More Info
Infinity Supercritical CO2 10 Liter Extractor Design and Worldwide Rights: The Infinity Supercritical 10L CO2 extractor is for botanical oil extraction, which is rich in terpenes and can produce shelf ready full spectrum oil. With over 5 years of development, this industry leader mature extractor machine has been sold since 2015 and is part of many profitable businesses. The process can also be used for electrowinning, e-waste recycling, and lithium battery recycling, gold mining electronic wastes, precious metals. CO2 can also be used in a reverse fuel cell with nafion to make a gas-to-liquids fuel, such as methanol, ethanol and butanol or ethylene. Supercritical CO2 has also been used for treating nafion to make it more effective catalyst. This NFT is for the purchase of worldwide rights which includes the design. More Info
NFT (Non Fungible Token): Buy our tech, design, development or system NFT and become part of our tech NFT network... More Info
Infinity Turbine Products: Special for this month, any plans are $10,000 for complete Cad/Cam blueprints. License is for one build. Try before you buy a production license. May pay by Bitcoin or other Crypto. Products Page... More Info
CONTACT TEL: 608-238-6001 Email: greg@infinityturbine.com (Standard Web Page)