All events take place in the Khiaroon at the Accra Beach Hotel unless otherwise noted. How Did Dread Pirate Roberts Acquire and Protect His Bitcoin Wealth? Malte Möser, Rainer Game theoretic analysis of ddos attacks against bitcoin mining pools and Dominic Breuker. Session Chair: Tyler Moore Franziska Boehm and Paulina Pesch.
Marie Vasek, Micah Thornton and Tyler Moore. Benjamin Johnson, Aron Laszka, Jens Grossklags, Marie Vasek and Tyler Moore. Joan Antoni Donet Donet, Cristina Pérez-Solà and Jordi Herrera. Marcin Andrychowicz, Stefan Dziembowski, Daniel Malinowski and Łukasz Mazurek. Amitabh Saxena, Janardan Misra and Aritra Dhar. Christina Garman, Matthew Green, Ian Miers and Aviel Rubin. This workshop is organized by the International Financial Cryptography Association.
And not just superficially so, but fundamentally, at the core protocol level. All other cryptocurrencies and schemes based on the same Bitcoin idea, including Litecoin, Namecoin, and any of the other few dozen Bitcoin-inspired currencies, are broken as well. Our work shows that this assertion is wrong. We show that, at the moment, any group of nodes employing our attack will succeed in earning an income above their fair share. Those of you who want a precise and full explanation of the attack can cut straight to the research paper, though it may be a bit terse and dry.
The key idea behind Bitcoin’s success is a decentralized protocol for maintaining a global ledger, called a blockchain. The blockchain records transactions between Bitcoin addresses, tracking the movement of every Bitcoin as it changes hands. This tracking ensures that no one can double-spend a coin, as the ledger makes it all too apparent whether a user sent out more Bitcoins from his account than he earned. This protocol works through a process called mining. In essence, the ledger is organized into a single, ordered sequence of blocks, each of which records a set of transactions.
Each block contains a crypto-puzzle, a computationally difficult challenge akin to a CAPTCHA. Miners organize themselves into a loosely-organized, distributed network, and they all concurrently try to add a new block to the ledger. Of course, this process is not free, as the process of solving these crypto-puzzles consumes power and requires cooling. For the currency to be viable, the miners need to be compensated for their efforts. Bitcoin miners are compensated through two mechanisms: they collect the transaction fees from the transactions recorded in the new block they contributed to the block chain, and they also collect a lump sum fee.