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Arbitrage Attack: Miners of the World, Unite!

  • Xi'an Jiaotong University
  • Swiss Federal Institute of Technology Zurich

Research output: Chapter in Book/Report/Conference proceedingConference contributionpeer-review

1 Scopus citations

Abstract

Blockchain oracles are introduced to mitigate the gap between blockchain-based applications and real-world information. To solve the centralization problem of current oracle systems, many decentralized protocols have been designed. In this paper, we define the basic model for decentralized oracles that rely on unencrypted transactions for verification and adjustment tasks. Furthermore, we introduce Arbitrage attack against such decentralized oracles carried out by rational miners and mining pools. We analyze the attack based on game-theoretic methods. Moreover, we briefly discuss the price of anarchy to demonstrate the characteristic of attackers’ cooperation union under different circumstances.

Original languageEnglish
Title of host publicationFinancial Cryptography and Data Security - 26th International Conference, FC 2022, Revised Selected Papers
EditorsIttay Eyal, Juan Garay
PublisherSpringer Science and Business Media Deutschland GmbH
Pages464-487
Number of pages24
ISBN (Print)9783031182822
DOIs
StatePublished - 2022
Event26th International Conference on Financial Cryptography and Data Security, FC 2022 - Saint George, Grenada
Duration: 2 May 20226 May 2022

Publication series

NameLecture Notes in Computer Science
Volume13411 LNCS
ISSN (Print)0302-9743
ISSN (Electronic)1611-3349

Conference

Conference26th International Conference on Financial Cryptography and Data Security, FC 2022
Country/TerritoryGrenada
CitySaint George
Period2/05/226/05/22

Keywords

  • Blockchain
  • Decentralized price oracle
  • Nash equilibrium
  • Price of anarchy (PoA)

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