Research

Mathematical formalism for the voting process in Bitcoin ecosystem

Sep 13, 2015

We propose a mathematical formalism for the voting process in Bitcoin ecosystem. This formalism can be used to algorithmically determine the best value of a certain parameter (e.g., a block size limit) which will be considered appropriate by all voters. The proposed approach is aimed to clarify vagueness of some proposed voting processes that potentially allows a party with marginal voting power to dictate their conditions to the rest of the network. To solve the problem, we introduce a non-negative dissatisfaction function and minimize its value summed over all votes. The value of the block size limit (and, potentially, other parameters of the protocol) found this way will satisfy voters provided the dissatisfaction function is chosen appropriately.

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Proof of Stake vs Proof of Work

Sep 11, 2015

Proof of stake is a consensus mechanism for digital currencies that is an alternative to proof of work used in Bitcoin. The main declared advantages of proof of stake approaches are the absence of expensive computations and hence a lower entry barrier for block generation rewards. In this white paper, we examine the pros and cons of both consensus systems and show that existing implementations of proof of stake are vulnerable to attacks which are highly unlikely in Bitcoin and proof of work approaches in general.

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BitFury Report On Block Size Increase

Aug 31, 2015

We believe that in order for Bitcoin ecosystem to prosper, the maximum block size must be increased. It is a common understanding among Bitcoin developers that the current limit of one megabyte hinders scalability of Bitcoin Blockchain and prevents its wide adoption as the technology of the future.

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Smart Contracts on Bitcoin Blockchain

Aug 13, 2015

Smart contracts are one of the more promising directions for cryptocurrencies and Bitcoin in particular. A smart contract is understood as a computer protocol used to facilitate and automate financial contracts. The term smart contract was introduced by Nick Szabo in 1990s and became more relevant than ever before in 2010s after digital currencies gained popularity.

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