Blockchains and Consensus Protocols: Snake Oil Warning

Abstract

A blockchain is a public ledger for recording transactions, maintained by<br> many nodes without central authority through a distributed cryptographic<br> protocol. All nodes validate the information to be appended to the<br> blockchain, and a consensus protocol ensures that the nodes agree on a<br> unique order in which entries are appended. Consensus protocols for<br> tolerating Byzantine faults have received renewed attention because they<br> also address blockchain systems. However, amid the current hype around<br> blockchains, cryptocurrencies, fintech startups, and novel consensus<br> mechanisms, it is sometimes overlooked that assessing and gaining<br> confidence in the resilience of a protocol is a difficult task. We argue that developing consensus protocols is similar to engineering<br> cryptographic systems, and that blockchain developers should look towards<br> the established experience in cryptography and security with building<br> trustworthy systems. Otherwise, it might be dangerous to entrust<br> financial value to new protocols. Public discussion, expert reviews,<br> broad validation, and standards recommendations should be employed,<br> following the established practice in cryptography and security.<br>