Transaction Propagation on Permissionless Blockchains: Incentive and Routing Mechanisms

Existing permissionless blockchain solutions rely on peer-to-peer propagation mechanisms, where nodes in a network transfer transaction they received to their neighbors. Unfortunately, there is no explicit incentive for such transaction propagation. Therefore, existing propagation mechanisms will not be sustainable in a fully decentralized blockchain with rational nodes. In this work, we formally define the problem of incentivizing nodes for transaction propagation. We propose an incentive mechanism where each node involved in the propagation of a transaction receives a share of the transaction fee. We also show that our proposal is Sybil-proof. Furthermore, we combine the incentive mechanism with smart routing to reduce the communication and storage costs at the same time. The proposed routing mechanism reduces the redundant transaction propagation from the size of the network to a factor of average shortest path length. The routing mechanism is built upon a specific type of consensus protocol where the round leader who creates the transaction block is known in advance. Note that our routing mechanism is a generic one and can be adopted independently from the incentive mechanism.Comment: 2018 Crypto Valley Conference on Blockchain Technolog

Sharing the proceeds from a hierarchical venture

We consider the problem of distributing the proceeds generated from a joint venture in which the participating agents are hierarchically organized. We introduce and characterize a family of allocation rules where revenue ‘bubbles up’ in the hierarchy. The family is flexible enough to accommodate the no-transfer rule where no revenue bubbles up) and the full-transfer rule (where all the revenues bubble up to the top of the hierarchy). Intermediate rules within the family are reminiscent of popular incentive mechanisms for social mobilization or multi-level marketing

Non-fungible tokens (NFTS) and their security challenges

The Non-Fungible Token (NFT) market has been exploding in the past years. The notion of NFT originated with Ethereum's token standard, which aimed to differentiate each token using distinguishing signals. Tokens of this type can be associated with virtual or digital properties to serve as unique identifiers. Using NFTs Non-Fungible Token (NFT) is a new technology gaining traction in the Blockchain industry. In this article, we examine state-of the art NFT systems that have the potential to reshape the market for digital virtual assets. We will assess the security of existing NFT systems and expand on the opportunities and prospective uses for the NFT idea. Finally, we discuss existing research challenges that must be overcome before mass-market penetration may occur. We hope that this paper provides an up-to-date analysis and summary of existing and proposed solutions and projects, making it easier for newcomers to stay current.Fonksuz Belirteç (NFT) pazarı son yıllarda patlama yapıyor. NFT'nin nosyonu Ethereum'un belirteç standardıyla ortaya çıkmıştır ve bu durum, her belirteci ayırt edici sinyaller kullanarak ayırt etmeyi amaçlamaktadır. Bu tipteki belirteçler, benzersiz tanımlayıcılar olarak hizmet vermek için sanal veya dijital özelliklerle ilişkilendirilebilir. NFTS Non-Fungible Token (NFT) kullanmak, Blockchain endüstrisinde yeni bir teknoloji kazanıyor. Bu makalede, dijital sanal varlıklar için pazarı yeniden şekillendirme potansiyeline sahip son teknoloji ürünü NFT sistemlerini inceliyoruz. Mevcut NFT sistemlerinin güvenliğini değerlendirecek ve NFT fikri için fırsatları ve olası kullanımları genişleteceğiz. Son olarak, kitle pazara giriş gerçekleşmeden önce aşılması gereken mevcut araştırma zorluklarını ele alıyoruz. Bu incelemede, mevcut ve önerilen çözüm ve projelerin güncel bir analizi ve özeti sağlanarak, yeni gelenlerin güncel kalmasını kolaylaştırılmasını umuyoruz.No sponso