This article investigates the cryptoeconomic safety of Proof of Stake (PoS) blockchains like Ethereum, which despite having a lower stake than total value, remain secure. It introduces ‘cost-of-corruption’ and ‘profit-from-corruption’ as key metrics for understanding this safety. The authors propose STAKESURE, a new insurance mechanism for PoS systems that aids in solving common information problems, provides safe bridging, and adjusts economic security. This system ensures that no honest transactor loses money and compensates harmed parties, reinforcing a notion of strong cryptoeconomic safety.
Publication date: 15 Jan 2024
Project Page: Not provided
Paper: https://arxiv.org/pdf/2401.05797
