Achieving State Machine Replication without Honest Players

TL;DR

This paper introduces the ByRa player model for tokenised state machine replication, addressing the unrealistic assumption of honest players and proposing a new protocol, Tenderstake, that guarantees safety and liveness under this model.

Contribution

The paper proposes the ByRa model, merging game theory and distributed systems, and presents Tenderstake, a protocol that satisfies incentive compatibility and fairness in this new framework.

Findings

Tenderstake provably satisfies incentive compatibility and fairness.

The ByRa model accurately reflects player behavior in tokenised protocols.

Addresses the limitations of honest player assumptions in existing protocols.

Abstract

Existing standards for player characterisation in tokenised state machine replication protocols depend on honest players who will always follow the protocol, regardless of possible token increases for deviating. Given the ever-increasing market capitalisation of these tokenised protocols, honesty is becoming more expensive and more unrealistic. As such, this out-dated player characterisation must be removed to provide true guarantees of safety and liveness in a major stride towards universal trust in state machine replication protocols and a new scale of adoption. As all current state machine replication protocols are built on these legacy standards, it is imperative that a new player model is identified and utilised to reflect the true nature of players in tokenised protocols, now and into the future. To this effect, we propose the ByRa player model for state machine replication protocols. In the ByRa model, players either attempt to maximise their tokenised rewards, or behave adversarially. This merges the fields of game theory and distributed systems, an intersection in which tokenised state machine replication protocols exist, but on which little formalisation has been carried out. In the ByRa model, we identify the properties of strong incentive compatibility in expectation and fairness that all protocols must satisfy in order to achieve state machine replication. We then provide Tenderstake, a protocol which provably satisfies these properties, and by doing so, achieves state machine replication in the ByRa model.