Seminar (Dept. of Finance)

Title: On the Security of Optimistic Blockchain Mechanisms

Speaker: Jiasun Li, Associate Professor, George Mason University, USA

Time: 9:00-10:30, Oct 13, 2023(Friday)

Venue: Online Meeting

Language: English

ABSTRACT:

Many new blockchain applications (e.g., layer-2 scaling solutions, proof-of-stake layer-1 chains, and cross-chain bridges, etc.) adopt an “optimistic” design, that is, the system proceeds as if all participants are well-behaving, presumably sustained by some “stake-and-slash” mechanisms. We formulate the logic of such optimistic systems within a simple game and characterize all equilibria. We point out that such protocols cannot be secure if all participants are rational. Therefore, to ensure security, protocol designers have to either impose a trust assumption regarding the presence of altruistic participants or look for alternative designs (e.g., zero-knowledge proof-based designs).

SHORT BIOGRAPHY:

Jiasun Li is an associate professor of finance at George Mason University School of Business. He obtained his Ph.D.in Finance from Anderson School at University of California, Los Angeles. His research interests lie in FinTech, Economics and Computation. His work has been published in the Journal of Finance, Review of Financial Studies, Management Science and other leading journals.