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arXiv · 2108.09604

The Power of Random Symmetry-Breaking in Nakamoto Consensus

Lili Su·Quanquan C. Liu·Neha Narula
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Abstract

Nakamoto consensus underlies the security of many of the world's largest cryptocurrencies, such as Bitcoin and Ethereum. Common lore is that Nakamoto consensus only achieves consistency and liveness under a regime where the difficulty of its underlying mining puzzle is very high, negatively impacting overall throughput and latency. In this work, we study Nakamoto consensus under a wide range of puzzle difficulties, including very easy puzzles. We first analyze an adversary-free setting and show that, surprisingly, the common prefix of the blockchain grows quickly even with easy puzzles. In a setting with adversaries, we provide a small backwards-compatible change to Nakamoto consensus to achieve consistency and liveness with easy puzzles. Our insight relies on a careful choice of \emph{symmetry-breaking strategy}, which was significantly underestimated in prior work. We introduce a new method -- \emph{coalescing random walks} -- to analyzing the correctness of Nakamoto consensus under the uniformly-at-random symmetry-breaking strategy. This method is more powerful than existing analysis methods that focus on bounding the number of {\it convergence opportunities}.

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Lili Su, Quanquan C. Liu, Neha Narula. 2021-08-22. The Power of Random Symmetry-Breaking in Nakamoto Consensus. https://arxiv.org/abs/2108.09604

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