Game-Theoretic Blockchain Models

Abstract

Certain game-theoretic models of blockchains are discussed in this chapter. These models provide a critical insight into the workings of the blockchain technology. A simple Bitcoin mining contest is described in the next section. This is followed by a Proof-of-Work mining game. A Bitcoin mining game with pooling is next described. An Algorand-like scheme is also examined. Finally a game-theoretic model of the Proof-of-Stake consensus protocol is analyzed. Interpretations and implications of these games are also outlined in their respective sections.