Soumya Basu

Soumya Basu, David Easley, Maureen O'Hara et al.

Blockchain-based cryptocurrencies prioritize transactions based on their fees, creating a unique kind of fee market. Empirically, this market has failed to yield stable equilibria with predictable prices for desired levels of service. We argue that this is due to the absence of a dominant strategy equilibrium in the current fee mechanism. We propose an alternative fee setting mechanism that is inspired by generalized second price auctions. The design of such a mechanism is challenging because miners can use any criteria for including transactions and can manipulate the results of the auction after seeing the proposed fees. Nonetheless, we show that our proposed protocol is free from manipulation as the number of users increases. We further show that, for a large number of users and miners, the gain from manipulation is small for all parties. This results in users proposing fees that represent their true utility and lower variance of revenue for miners. Historical analysis shows that Bitcoin users could have saved $272,528,000 USD in transaction fees while miners could have reduced the variance of fee income by an average factor of 7.4 times.

Soumya Basu, Alin Tomescu, Ittai Abraham et al.

This paper introduces a new way to incorporate verifiable secret sharing (VSS) schemes into Byzantine Fault Tolerance (BFT) protocols. This technique extends the threshold guarantee of classical Byzantine Fault Tolerant algorithms to include privacy as well. This provides applications with a powerful primitive: a threshold trusted third party, which simplifies many difficult problems such as a fair exchange. In order to incorporate VSS into BFT, we introduced sAVSS, a framework that transforms any VSS scheme into an asynchronous VSS scheme with constant overhead. By incorporating Kate et al.'s scheme into our framework, we obtain an asynchronous VSS that has constant overhead on each replica -- the first of its kind. We show that a key-value store built using BFT replication and sAVSS supports writing secret-shared values with about a 30% - 50% throughput overhead with less than 35 millisecond request latencies.

Adem Efe Gencer, Soumya Basu, Ittay Eyal et al.

Blockchain-based cryptocurrencies have demonstrated how to securely implement traditionally centralized systems, such as currencies, in a decentralized fashion. However, there have been few measurement studies on the level of decentralization they achieve in practice. We present a measurement study on various decentralization metrics of two of the leading cryptocurrencies with the largest market capitalization and user base, Bitcoin and Ethereum. We investigate the extent of decentralization by measuring the network resources of nodes and the interconnection among them, the protocol requirements affecting the operation of nodes, and the robustness of the two systems against attacks. In particular, we adapted existing internet measurement techniques and used the Falcon Relay Network as a novel measurement tool to obtain our data. We discovered that neither Bitcoin nor Ethereum has strictly better properties than the other. We also provide concrete suggestions for improving both systems.