How to Tame Multiple Spending in Decentralized Cryptocurrencies

TL;DR

This paper introduces a new approach to double-spending in decentralized cryptocurrencies by defining a relaxed asset transfer model that accounts for trust-based local quorums, aiming for more realistic deployment scenarios.

Contribution

It proposes the $k$-Spending Asset Transfer model, linking trust assumptions with the maximum allowed spending, offering a novel perspective on double-spending mitigation.

Findings

Defines $k$-Spending Asset Transfer model

Establishes relationship between trust assumptions and $k$

Provides a framework for realistic double-spending control

Abstract

The last decade has seen a variety of Asset-Transfer systems designed for decentralized environments. To address the problem of double-spending, these systems inherently make strong model assumptions and spend a lot of resources. In this paper, we take a non-orthodox approach to the double-spending problem that might suit better realistic environments in which these systems are to be deployed. We consider the decentralized trust setting, where each user may independently choose who to trust by forming its local quorums. In this setting, we define $k$-Spending Asset Transfer, a relaxed version of asset transfer which bounds the number of times the same asset can be spent. We establish a precise relationship between the decentralized trust assumptions and $k$, the optimal spending number of the system.