00000nam 2200000za 4500 9.859595 CaOODSP 20221107160305 cr ||||||||||| 180725s2018 onc #ob f000 0 eng d CaOODSP eng eng fre FB3-5/2018-34E-PDF Chiu, Jonathan. Incentive compatibility on the blockchain [electronic resource] / by Jonathan Chiu and Thorsten V. Koeppl. Ottawa : Bank of Canada, 2018. ii, 15 p. Bank of Canada staff working paper, 1701-9397 ; 2018-34 "July 2018." Includes bibliographical references. "A blockchain is a digital ledger that keeps track of a record of ownership without the need for a designated party to update and enforce changes to the record. The updating of the ledger is done directly by the users of the blockchain and is traditionally governed by a proof-of-work (PoW) protocol. We formalize this protocol as a Cournot game where users compete to update the blockchain for a reward. Cheating occurs in the form of “double spending” when users try to tamper with ownership records in order to defraud their counterparties. Ruling out incentives to cheat can be summarized in the form of a “no double-spending constraint.” These constraints put restrictions on the design of a blockchain and, thus, play a role akin to incentive compatibility constraints in classic mechanism design"--Abstract, p. ii. Includes abstract in French. gccst Incentives gccst Financial management gccst Digital technology Koeppl, Thorsten V. Bank of Canada. Staff working paper (Bank of Canada) 1701-9397 ; 2018-34. (CaOODSP)9.806221 PDF 496 KB https://publications.gc.ca/collections/collection_2018/banque-bank-canada/FB3-5-2018-34-eng.pdf