On the Security and Scalability of Proof ... - Scaling Bitcoin - 5 - Arthur... · On the Security...
Transcript of On the Security and Scalability of Proof ... - Scaling Bitcoin - 5 - Arthur... · On the Security...
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On the Security and Scalability of Proof of Work Blockchains
Arthur Gervais
ETH Zurich
Scaling Bitcoin 2016 - Milan
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Synchronization
2
Broadcast of transactions/blocks • All transactions, blocks need to be broadcast into the whole network
• Larger blocks slower propagation increased consensus latency
• Risks of networkpartition (stale blocks…)
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Synchronization
2
Broadcast of transactions/blocks • All transactions, blocks need to be broadcast into the whole network
• Larger blocks slower propagation increased consensus latency
• Risks of networkpartition (stale blocks…)
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Synchronization
2
Broadcast of transactions/blocks • All transactions, blocks need to be broadcast into the whole network
• Larger blocks slower propagation increased consensus latency
• Risks of networkpartition (stale blocks…)
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Synchronization
2
Broadcast of transactions/blocks • All transactions, blocks need to be broadcast into the whole network
• Larger blocks slower propagation increased consensus latency
• Risks of networkpartition (stale blocks…)
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Synchronization
2
Broadcast of transactions/blocks • All transactions, blocks need to be broadcast into the whole network
• Larger blocks slower propagation increased consensus latency
• Risks of networkpartition (stale blocks…)
Denial of ServiceDouble Spending
Selfish Mining
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Decentralised PoW Blockchains
3
Which one is a better Blockchain?
10 minutes 2.5 minutes 1 minute 20 seconds
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Decentralised PoW Blockchains
3
Which one is a better Blockchain?
Faster block generation Faster payments
Bigger block size More payments / slower propagation
10 minutes 2.5 minutes 1 minute 20 seconds
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Decentralised PoW Blockchains
3
Which one is a better Blockchain?
Faster block generation Faster payments
Bigger block size More payments / slower propagation
10 minutes 2.5 minutes 1 minute 20 seconds
Bitcoin Litecoin Dogecoin Ethereum
Propagation Time 8.7 s 1.02 s 0.85 s 0.5 - 0.75 s
Medium Block size 534.8 KB 6.11 KB 8 KB 1.5 KB
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Quantitative Framework
Compare security of PoW blockchainsAccount for double-spending and selfish mining Determine the optimal adversarial strategies Provide # of secure confirmations depending on tx value Increasing throughput without penalizing security
Understanding Security / Performance of PoW Blockchains
4
Contributions
Open Source Bitcoin Simulator
Realistic simulation of network and blockchain properties Flexible reparametrizationScalable to thousands of nodes Open Source and documented
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Decentralised PoW Blockchains
5
Blockchain and Forks
Block 1 Block 2 Block 3 Block 4
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Decentralised PoW Blockchains
5
Blockchain and Forks
Block 1 Block 2 Block 3 Block 4
Block 3’ Block 4’
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Decentralised PoW Blockchains
5
Blockchain and Forks
Block 1 Block 2 Block 3 Block 4
Block 3’ Block 4’
Stale blocks
= lost effort
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Decentralised PoW Blockchains
5
Blockchain and Forks
Block 1 Block 2 Block 3 Block 4
Block 3’ Block 4’
Block 1’’ Block 2’’ Block 3’’ Block 4’’ Block 5’’
Stale blocks
= lost effort
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Decentralised PoW Blockchains
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Blockchain and Forks
Block 1 Block 2 Block 3 Block 4
Block 3’ Block 4’
Block 1’’ Block 2’’ Block 3’’ Block 4’’ Block 5’’
Stale blocks
= lost effort
Bitcoin Litecoin Dogecoin Ethereum0.41% 0.273% 0.619% 6.8%Stale Block rates
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Double Spending
6
Security of PoW Blockchains
TXlegitimate - Pays the vendorTXdoublespend - Pays the adversary
B0
TXlegitimate
B1
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Double Spending
6
Security of PoW Blockchains
TXlegitimate - Pays the vendorTXdoublespend - Pays the adversary
B0
TXlegitimate
B1
B’1
TXdoublespend
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Double Spending
6
Security of PoW Blockchains
TXlegitimate - Pays the vendorTXdoublespend - Pays the adversary
B0
TXlegitimate
B1
B’2B’1
TXdoublespend
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Double Spending
6
Security of PoW Blockchains
TXlegitimate - Pays the vendorTXdoublespend - Pays the adversary
B0
TXlegitimate
B1
B’2B’1
TXdoublespend
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Double Spending
6
Security of PoW Blockchains
TXlegitimate - Pays the vendorTXdoublespend - Pays the adversary
B0
TXlegitimate
B1
B’2B’1
TXdoublespend
B3
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What is Selfish Mining? [Eyal and Sirer]
7
Security of PoW Blockchains
• Instead of publishing, keep a block private
• Release block to compete Other miners will perform wasteful computations Adversary looses block rewards
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Selfish Mining vs. Double Spending
8
Selected findings
Selfish Mining
Increases relative rewardNot necessarily rational
Double Spending
Increase absolute rewardEconomically rational adversary
Consider them independently
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Decentralised PoW Blockchains
9
Towards a better Blockchain
FasterFaster
payments
BiggerSmaller
SlowerSlower
payments
lesssecurity
bettersecurity
Blockgeneration
Block size
Slower propagation
Faster propagation
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Understanding Security / Performance of PoW Blockchains
10
Framework
PoW Blockchain Security Modelstale block rate
Consensus & Network
parameters
Security parameters
Block propagation times Throughput
Optimal adversarial strategy Security characteristics
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Decentralised Blockchain
11
PoW Blockchain
Blockchain instance can be A real blockchain (e.g. Bitcoin, Ethereum)Simulated blockchain
Simulator captures (Open Source)
Consensus & Network
parameters
PoW Blockchain
Stale block rateBlock propagation times Throughput
Consensus parameter Network-Layer Parameters
Block interval distribution Block size distribution
Mining power dist. Geographical distribution of nodes/miners
Number of connections of nodes/miners
Propagation Protocol
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Decentralised Blockchain
11
PoW Blockchain
Blockchain instance can be A real blockchain (e.g. Bitcoin, Ethereum)Simulated blockchain
Simulator captures (Open Source)
Consensus & Network
parameters
PoW Blockchain
Stale block rateBlock propagation times Throughput
Consensus parameter Network-Layer Parameters
Block interval distribution Block size distribution
Mining power dist. Geographical distribution of nodes/miners
Number of connections of nodes/miners
Propagation Protocol
Europe, 5.40%
NorthAmerica,23.70% Asia
Pacific,70.90%
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Decentralised Blockchain
11
PoW Blockchain
Blockchain instance can be A real blockchain (e.g. Bitcoin, Ethereum)Simulated blockchain
Simulator captures (Open Source)
Consensus & Network
parameters
PoW Blockchain
Stale block rateBlock propagation times Throughput
Consensus parameter Network-Layer Parameters
Block interval distribution Block size distribution
Mining power dist. Geographical distribution of nodes/miners
Number of connections of nodes/miners
Propagation Protocol
Europe, 5.40%
NorthAmerica,23.70% Asia
Pacific,70.90%
NorthAmerica,38.69%
Europe,51.59%
SouthAmerica,1.13%
Japan,1.19%Australia, 1.66%
Asia Pacific,5.74%
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Decentralised Blockchain
12
Security Model
Captures optimal adversarial strategies for Selfish Miningfor Double Spending based on Markov Decision Processes
Security Parameters Adversarial mining power Stale block rate Connectivity of the adversary Impact of eclipse attacks Mining costs Number of required confirmations
Security parameters
Security Model
Optimal adversarial strategy Security provisions
stale block rate
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Security Model
13
Markov Decision Process
Extension of Markov Chains Adds actions and rewardsState space and action space
B0 B1
B’1 B’2
State: (3, 1)
B’3
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Security Model
13
Markov Decision Process
Extension of Markov Chains Adds actions and rewardsState space and action space
B0 B1
B’1 B’2
State: (3, 1)
B’3
Attacker chain
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Security Model
13
Markov Decision Process
Extension of Markov Chains Adds actions and rewardsState space and action space
B0 B1
B’1 B’2
State: (3, 1)
B’3
Honest chainAttacker chain
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Security Model
13
Markov Decision Process
Extension of Markov Chains Adds actions and rewardsState space and action space
B0 B1
B’1 B’2
State: (3, 1)
B’3
Honest chainAttacker chain
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Security Model
13
Markov Decision Process
Extension of Markov Chains Adds actions and rewardsState space and action space
B0 B1
B’1 B’2
State: (3, 1)
B’3
Honest chainAttacker chain
Reward for adversary: 2
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Security Model
13
Markov Decision Process
Extension of Markov Chains Adds actions and rewardsState space and action space
B0 B1
B’1 B’2
State: (3, 1)
B’3
Honest chainAttacker chain
(1, 1)
B3
Reward for adversary: 2
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Selected findings
14
How many confirmations required to match security?
vs.
Staleblock rate 6.8 % 0.41 %
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Selected findings
14
How many confirmations required to match security?
vs.
smaller block rewards
higher stale block rate
Staleblock rate 6.8 % 0.41 %
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Selected findings
14
How many confirmations required to match security?
vs.
smaller block rewards
higher stale block rate
Staleblock rate 6.8 % 0.41 %
Litecoin would require 28, and Dogecoin 47 block confirmations respectively to match the security of 6 Bitcoin confirmations.
Matching Blockconfirmations,30% adversary
37 612.4 minutes 60 minutes
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Selected findings
15
Increasing throughput?
1 MB blocks1 Minute Block interval
Based on Simulator results
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Selected findings
15
Increasing throughput?
1 MB blocks1 Minute Block interval
Stale block rate does not increase substantially
Based on Simulator results
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Selected findings
15
Increasing throughput?
1 MB blocks1 Minute Block interval
Stale block rate does not increase substantially
Based on Simulator results
From 7 tps to 60 tps, without sacrifising security
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Selfish Mining under constant difficulty
16
Selected findings
Selfish Mining yield fewer block rewards than honest mining.
Mining 1000 blocks
30 % selfish miner mines 209 blocks, instead of 300! (under optimal strategy)
Eyal and Sirer’s strategy yields on average 205.8 blocks
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Selected Findings
17
Influence of Stale Block rate on Selfish Mining
The higher the stale block rate the higher the relative revenue
0.0 0.1 0.2 0.3 0.4 0.5Stale rate rs
0.0
0.2
0.4
0.6
0.8
1.0
Rel
ativ
ere
venu
e α = 0.1
α = 0.3
Bitcoin Ethereum
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Double-Spending
18
Selected findings
Profitability depends on transaction value Quantifying resilience using minimum vd, s.t. double-spending is profitable
0.0 0.1 0.2 0.3 0.4 0.5Stale rate rs
100
101
102
103
104
v dα = 0.1
α = 0.3
Bitcoin Ethereum
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Double-Spending
18
Selected findings
Profitability depends on transaction value Quantifying resilience using minimum vd, s.t. double-spending is profitable
0.0 0.1 0.2 0.3 0.4 0.5Stale rate rs
100
101
102
103
104
v dα = 0.1
α = 0.3
Bitcoin Ethereum
Threshold at which double-
spending is more profitable than honest mining
The higher the vd, the better
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Number of required confirmations (Bitcoin)
19
Selected findings
0.0 0.1 0.2 0.3 0.4 0.5
Adversarial mining power α
0
5
10
15
20
25
30
35
40
45
Nec
essa
ryco
nfirm
atio
nsk
vd = $100000
vd = $10000
vd = $1000
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Double Spending Bitcoin vs. Ethereum
20
Selected findings
0.0 0.1 0.2 0.3 0.4 0.5
Adversarial mining power α
10−1
100101102103104105106107108
v din
bloc
kre
war
ds
Bitcoin, k = 6, block rew.Ethereum, k = 12, block rew.Ethereum, k = 6, block rew.
10−1
100101102103104105106107108
v din
$
Bitcoin, k = 6, $Ethereum, k = 12, $Ethereum, k = 6, $
Double-spending resistance of Ethereum (k in {6,12}) vs. Bitcoin (k=6)
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Block reward impact
21
Selected findings
For a fixed transaction valueWe show that the higher the block reward (e.g., in USD), the more resilient it is against double-spending
Merchant can vary the # of confirmations depending on the transaction value
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Summary
Quantitative Framework
Compare PoW blockchains objectively
Selfish Mining not always rational
Double Spending is rational
Blockchain Simulatorhttp://arthurgervais.github.io/Bitcoin-Simulation/index.html
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Summary
Quantitative Framework
Compare PoW blockchains objectively
Selfish Mining not always rational
Double Spending is rational
Block confirmation equivalence
6 Bitcoin = 37 Ethereum (20 sec) = 28 Litecoin (2.5 min) = 47 Dogecoin (1 min)The higher the block reward in USD, the more resilient against double spending
Blockchain Simulatorhttp://arthurgervais.github.io/Bitcoin-Simulation/index.html
![Page 50: On the Security and Scalability of Proof ... - Scaling Bitcoin - 5 - Arthur... · On the Security and Scalability of Proof of Work Blockchains Arthur Gervais ETH Zurich Scaling Bitcoin](https://reader036.fdocuments.in/reader036/viewer/2022062916/5ec46d7006c97871f958caa7/html5/thumbnails/50.jpg)
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Summary
Quantitative Framework
Compare PoW blockchains objectively
Selfish Mining not always rational
Double Spending is rational
Block confirmation equivalence
6 Bitcoin = 37 Ethereum (20 sec) = 28 Litecoin (2.5 min) = 47 Dogecoin (1 min)The higher the block reward in USD, the more resilient against double spending
Good block size/interval
1 MB block and1 Minute block interval
+60 transactions/s without scarifying security
(instead of Bitcoin 7 tps)
Blockchain Simulatorhttp://arthurgervais.github.io/Bitcoin-Simulation/index.html
![Page 51: On the Security and Scalability of Proof ... - Scaling Bitcoin - 5 - Arthur... · On the Security and Scalability of Proof of Work Blockchains Arthur Gervais ETH Zurich Scaling Bitcoin](https://reader036.fdocuments.in/reader036/viewer/2022062916/5ec46d7006c97871f958caa7/html5/thumbnails/51.jpg)
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Summary
Quantitative Framework
Compare PoW blockchains objectively
Selfish Mining not always rational
Double Spending is rational
Block confirmation equivalence
6 Bitcoin = 37 Ethereum (20 sec) = 28 Litecoin (2.5 min) = 47 Dogecoin (1 min)The higher the block reward in USD, the more resilient against double spending
Good block size/interval
1 MB block and1 Minute block interval
+60 transactions/s without scarifying security
(instead of Bitcoin 7 tps)
Blockchain Simulatorhttp://arthurgervais.github.io/Bitcoin-Simulation/index.html Thank you!
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Decentralised PoW Blockchains
26
Proof of Work Blockchains
H(B2)
B3B2B0
txs
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Decentralised PoW Blockchains
26
Proof of Work Blockchains
Mining • Find Nonce N, s.t. H(H(B3)|txs|N) < target
H(B2)
B3B2B0
txs