A Better Method to Analyze Blockchain Consistency

The celebrated Nakamoto consensus protocol ushered in several new consensus applications including cryptocurrencies. A few recent works have analyzed important properties of blockchains, including most significantly, consistency, which is a guarantee that all honest parties output the same sequence of blocks throughout the execution of the protocol. To establish consistency, the prior analysis of Pass, Seeman and shelat required a careful counting of certain combinatorial events that was difficult to apply to variations of Nakamoto. The work of Garay, Kiayas, and Leonardas provides another method of analyzing the blockchain under both a synchronous and partially synchronous setting. The contribution of this paper is the development of a simple Markov-chain based method for analyzing consistency properties of blockchain protocols. The method includes a formal way of stating strong concentration bounds as well as easy ways to concretely compute the bounds. We use our new method to answer a number of basic questions about consistency of blockchains: • Our new analysis provides a tighter guarantee on the consistency property of Nakamoto’s protocol, including for parameter regimes which previous work could not consider; • We analyze a family of delaying attacks and extend them to other protocols; • We analyze how long a participant should wait before considering a high-value transaction “confirmed”; • We analyze the consistency of CliqueChain, a variation of the Chainweb system; • We provide the first rigorous consistency analysis of GHOST under the partially synchronous setting and also analyze a folklore balancing -attack. In each case, we use our framework to experimentally analyze the consensus bounds for various network delay parameters and adversarial computing percentages. We hope our techniques enable authors of future blockchain proposals to provide a more rigorous analysis of their schemes

Analysis of Nakamoto Consensus, Revisited

In the Bitcoin white paper, Nakamoto proposed a very simple Byzantine fault tolerant consensus algorithm that is also known as Nakamoto consensus. Despite its simplicity, some existing analysis of Nakamoto consensus appears to be long and involved. In this technical report, we aim to make such analysis simple and transparent so that we can teach senior undergraduate students and graduate students in our institutions. This report is largely based on a 3-hour tutorial given by one of the authors in June 2019.Comment: 8 page

Analysis of Nakamoto Consensus

This paper gives a simple analysis of Nakamoto consensus