IDEAS home Printed from https://ideas.repec.org/h/spr/sprchp/978-3-031-33083-4_6.html
   My bibliography  Save this book chapter

Cryptography Versus Incentives

In: The Economics of Blockchain Consensus

Author

Listed:
  • Joshua Gans

    (University of Toronto)

Abstract

This chapter explores the trade-off between using cryptography and incentives in blockchain systems, particularly in the context of smart contracts. Cryptography provides security and permissions, but can limit contract offerings and increase computational costs. Incentives encourage positive behavior, but require access to hidden information. By examining the example of front-running in blockchains with smart contracting layers, the chapter highlights the distinct solutions provided by cryptography and incentives. Ultimately, striking a balance between these two approaches is crucial for ensuring efficient and secure blockchain operations.

Suggested Citation

  • Joshua Gans, 2023. "Cryptography Versus Incentives," Springer Books, in: The Economics of Blockchain Consensus, chapter 0, pages 85-101, Springer.
    • Handle: RePEc:spr:sprchp:978-3-031-33083-4_6
    DOI: 10.1007/978-3-031-33083-4_6
    as

    Download full text from publisher

    To our knowledge, this item is not available for download. To find whether it is available, there are three options:
    1. Check below whether another version of this item is available online.
    2. Check on the provider's web page whether it is in fact available.
    3. Perform a search for a similarly titled item that would be available.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:spr:sprchp:978-3-031-33083-4_6. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Sonal Shukla or Springer Nature Abstracting and Indexing (email available below). General contact details of provider: http://www.springer.com .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.