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It will cost you nothing to "kill" a proof-of-stake crypto-currency

Author

Listed:
  • Nicolas Houy

    () (Université de Lyon, Lyon, F-69007, France; CNRS, GATE Lyon Saint-Etienne, Ecully, F-69130, France.)

Abstract

It is a widely spread belief that crypto-currencies implementing a proof of stake transaction validation system are less vulnerable to a 51% attack than crypto-currencies implementing a proof of work transaction validation system. In this article, we show that it is not the case and that, in fact, if the attacker's motivation is large enough (and this is common knowledge), he will succeed in his attack at no cost.

Suggested Citation

  • Nicolas Houy, 2014. "It will cost you nothing to "kill" a proof-of-stake crypto-currency," Economics Bulletin, AccessEcon, vol. 34(2), pages 1038-1044.
  • Handle: RePEc:ebl:ecbull:eb-14-00114
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    Cited by:

    1. repec:spr:qualqt:v:52:y:2018:i:5:d:10.1007_s11135-017-0605-5 is not listed on IDEAS
    2. Nicolas Houy, 2014. "The economics of Bitcoin transaction fees," Working Papers halshs-00951358, HAL.
    3. repec:gam:jeners:v:10:y:2017:i:12:p:1971-:d:120441 is not listed on IDEAS
    4. repec:eee:finana:v:62:y:2019:i:c:p:182-199 is not listed on IDEAS
    5. Russ, Meir, 2016. "The probable foundations of sustainabilism: Information, energy and entropy based definition of capital, Homo Sustainabiliticus and the need for a “new gold”," Ecological Economics, Elsevier, vol. 130(C), pages 328-338.
    6. Hermann Elendner & Simon Trimborn & Bobby Ong & Teik Ming Lee, 2016. "The Cross-Section of Crypto-Currencies as Financial Assets: An Overview," SFB 649 Discussion Papers SFB649DP2016-038, Sonderforschungsbereich 649, Humboldt University, Berlin, Germany.
    7. Zura Kakushadze & Jim Kyung-Soo Liew, 2018. "CryptoRuble: From Russia with Love," Papers 1801.05760, arXiv.org.

    More about this item

    Keywords

    Bitcoin; protocol; proof of work; proof of stake; 51% attack;

    JEL classification:

    • D4 - Microeconomics - - Market Structure, Pricing, and Design
    • Z0 - Other Special Topics - - General

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