It Will Cost You Nothing to 'Kill' a Proof-of-Stake Crypto-Currency

Abstract

It is a widely spread belief that crypto-currencies implementing a proof of stake transaction validation system are less vulnerable to a 51% attack than crypto-currencies implementing a proof of work transaction validation system. In this article, we show that it is not the case and that, in fact, if the attacker’s motivation is large enough (and this is common knowledge), he will succeed in his attack at no cost.

Keywords: Bitcoin, protocol, proof of work, proof of stake, 51% attack

JEL Classification: G23, Z00