CRGTOct 19, 2019

Rationality is Self-Defeating in Permissionless Systems

arXiv:1910.08820v129 citations
Originality Highly original
AI Analysis

This addresses a foundational security issue for decentralized systems like blockchains, presenting a novel theoretical critique rather than an incremental improvement.

The paper tackles the problem of security in open-world decentralized systems by arguing that rational behavior can be self-defeating, concluding that systems relying on rationality assumptions are inherently insecure.

We outline a metacircular argument explaining why it is rational to be irrational when attacking open-world decentralized systems, and why systems whose security depend on rationality assumptions are insecure.

Foundations

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