SearcharxivSearch

arXiv subjects

Shreekara Shastry

Publications and source records attributed to Shreekara Shastry.

3 recordsLinked to original sources

Slow and Steady: Preventing MEV with Verifiable Delays

Our work presents a defense mechanism against Maximal Extractable Value (MEV) opportunities in distributed ledgers. The mechanism relies on the idea of enforcing a verifiable delay when generating transactions, such that a block creator cannot react to the appearance of a MEV opportunity without breaking liveness. We present positive results both in the Byzantine setting and in a game theoretic model of rational participants. We additionally present negative bounds that outline the limitations of this line of defense. Finally, we explore real-world implementation details of verifiable delays and show that, based on historical MEV data, our mechanism could realistically help prevent most existing MEV threats.

cs.CR

Optimal Reward Allocation via Proportional Splitting

Following the publication of Bitcoin's arguably most famous attack, selfish mining, various works have introduced mechanisms to enhance blockchain systems' game-theoretic resilience. The only proof-of-work reward rule with a Nash-equilibrium guarantee, FruitChains, demands reward finality on the order of days. The rules that settle in minutes have no such guarantee, and one of them, Reward Splitting, still outperforms FruitChains on most of the metrics that matter in deployment. This paper closes that gap between theory and practice. We introduce FairChain, a two-level transformation for any proof-of-work Nakamoto-style protocol. At the protocol layer, FairChain records low-difficulty samples called workshares alongside blocks. At the reward layer, it applies Proportional Reward Splitting (PRS): each height's reward is divided among the competing work objects in proportion to the intrinsic work behind them, with workshares supplying a fresh power estimate at every height. The fork-choice rule and block-production loop are left untouched, so the host chain's security carries over unchanged. Workshares can be discarded once the corresponding rewards mature, leaving zero on-chain footprint. We prove FairChain is a \r{ho}-coalition-safe ε-Nash equilibrium for sufficiently large parameters, matching FruitChains in theory. To evaluate practical performance, we leverage Markov decision processes and compute the optimal adversarial policy under each utility function, rather than the gain of any one attack. At a six-block confirmation window, FairChain raises the deviation threshold to 38% of mining power and beats every mechanism in that framework on incentive compatibility, subversion gain (except FruitChains above 42%), and censorship susceptibility (except FruitChains below 25%).

cs.GT

POEM: Proof of Entropy Minima

Nakamoto consensus has been incredibly influential in enabling robust blockchain systems, and one of its components is the so-called heaviest chain rule (HCR). Within this rule, the calculation of the weight of the chain tip is performed by adding the difficulty threshold value to the previous total difficulty. Current difficulty based weighting systems do not take the intrinsic block weight into account. This paper studies a new mechanism based on entropy differences, named proof of entropy minima (POEM), which incorporates the intrinsic block weight in a manner that significantly reduces the orphan rate of the blockchain while simultaneously accelerating finalization. Finally, POEM helps to understand blockchain as a static time-independent sequence of committed events.

cs.CR