Arbeitspapier
Incentive compatibility on the blockchain
A blockchain is a digital ledger that keeps track of a record of ownership without the need for a designated party to update and enforce changes to the record. The updating of the ledger is done directly by the users of the blockchain and is traditionally governed by a proof-of-work (PoW) protocol. We formalize this protocol as a Cournot game where users compete to update the blockchain for a reward. Cheating occurs in the form of "double spending" when users try to tamper with ownership records in order to defraud their counterparties. Ruling out incentives to cheat can be summarized in the form of a "no double-spending constraint." These constraints put restrictions on the design of a blockchain and, thus, play a role akin to incentive compatibility constraints in classic mechanism design.
- Sprache
-
Englisch
- Erschienen in
-
Series: Bank of Canada Staff Working Paper ; No. 2018-34
- Klassifikation
-
Wirtschaft
Other Economic Systems: Public Economics; Financial Economics
- Thema
-
Digital currencies
Payment clearing and settlement systems
Economic models
- Ereignis
-
Geistige Schöpfung
- (wer)
-
Chiu, Jonathan
Koeppl, Thorsten V.
- Ereignis
-
Veröffentlichung
- (wer)
-
Bank of Canada
- (wo)
-
Ottawa
- (wann)
-
2018
- DOI
-
doi:10.34989/swp-2018-34
- Handle
- Letzte Aktualisierung
-
10.03.2025, 11:41 MEZ
Datenpartner
ZBW - Deutsche Zentralbibliothek für Wirtschaftswissenschaften - Leibniz-Informationszentrum Wirtschaft. Bei Fragen zum Objekt wenden Sie sich bitte an den Datenpartner.
Objekttyp
- Arbeitspapier
Beteiligte
- Chiu, Jonathan
- Koeppl, Thorsten V.
- Bank of Canada
Entstanden
- 2018
Ähnliche Objekte (12)
The Carrot and the Stick: The Business Cycle Implications of Incentive Pay in the Labor Search Model
Blockchain-based settlement for asset trading
Incentive-Compatibility in Large Games
Incentive Compatibility Ten Years Later
Identifying asymmetric comovements of international stock market returns
On the existence and fragility of repo markets
Sterilized intervention in emerging-market economies: Trends, costs, and risks
Targeting Inflation from Below - How Do Inflation Expectations Behave?
Revisiting National Border Effects in Foreign Trade in Goods of Canadian Provinces
Optimal monetary policy during endogenous housing-market boom-bust cycles
IMF-supported adjustment programs: Welfare implications and the catalytic effect
On the Welfare Cost of Rare Housing Disasters
The Carrot and the Stick: The Business Cycle Implications of Incentive Pay in the Labor Search Model
Blockchain-based settlement for asset trading
Incentive-Compatibility in Large Games
Incentive Compatibility Ten Years Later
Identifying asymmetric comovements of international stock market returns
On the existence and fragility of repo markets
Sterilized intervention in emerging-market economies: Trends, costs, and risks
Targeting Inflation from Below - How Do Inflation Expectations Behave?
Revisiting National Border Effects in Foreign Trade in Goods of Canadian Provinces
Optimal monetary policy during endogenous housing-market boom-bust cycles
IMF-supported adjustment programs: Welfare implications and the catalytic effect
On the Welfare Cost of Rare Housing Disasters
The Carrot and the Stick: The Business Cycle Implications of Incentive Pay in the Labor Search Model
Blockchain-based settlement for asset trading
Incentive-Compatibility in Large Games
Incentive Compatibility Ten Years Later
Identifying asymmetric comovements of international stock market returns
On the existence and fragility of repo markets
Sterilized intervention in emerging-market economies: Trends, costs, and risks
Targeting Inflation from Below - How Do Inflation Expectations Behave?
Revisiting National Border Effects in Foreign Trade in Goods of Canadian Provinces
Optimal monetary policy during endogenous housing-market boom-bust cycles
IMF-supported adjustment programs: Welfare implications and the catalytic effect