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

6 Pages Posted: 11 Feb 2014  

Nicolas Houy

University of Lyon 2 - Groupe d'Analyse et de Théorie Economique (GATE)

Date Written: January 2014

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

Suggested Citation

Houy, Nicolas, It Will Cost You Nothing to 'Kill' a Proof-of-Stake Crypto-Currency (January 2014). Available at SSRN: https://ssrn.com/abstract=2393940 or http://dx.doi.org/10.2139/ssrn.2393940

Nicolas Houy (Contact Author)

University of Lyon 2 - Groupe d'Analyse et de Théorie Economique (GATE) ( email )

93, chemin des Mouilles
Ecully, 69130
France

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