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arXiv · 1805.08674

PoW, PoS, & Hybrid protocols: A Matter of Complexity?

Renato P. dos Santos·Melanie Swan
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Abstract

In a previous paper, it was discussed whether Bitcoin and/or its blockchain could be considered a complex system and, if so, whether a chaotic one, a positive response raising concerns about the likelihood of Bitcoin/blockchain entering a chaotic regime, with catastrophic consequences for financial systems based on it. This paper intends to simplify and extend that analysis to other PoW, PoS, and hybrid protocol-based cryptocurrencies. As before, this study was carried out with the help of Information Theory of Complex Systems, in general, and Crutchfield's Statistical Complexity measure, in particular. This paper is a work-in-progress. We intend to uncover some other measures that capture the qualitative notion of complexity of systems that can be applied to these cryptocurrencies to compare with the results here obtained.

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Renato P. dos Santos, Melanie Swan. 2018-05-13. PoW, PoS, & Hybrid protocols: A Matter of Complexity?. https://arxiv.org/abs/1805.08674

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