2019/05/22 by David Cerezo Sánchez, Sánchez, David Cerezo · 1 citation
Computer Science · #Blockchain Technology Applications and Security #Computer Science and Game Theory (cs.GT) #Cryptography and Data Security #Cryptography and Security (cs.CR) #FOS: Computer and information sciences #Internet Traffic Analysis and Secure E-voting
paper · pdf · doi:10.48550/arxiv.1905.09093
openalex publication_date 2019/05/22 · openalex created_date 2022/10/04 · openalex updated_date 2026/07/28
Zero-Knowledge Proof-of-Identity from trusted public certificates (e.g.,\nnational identity cards and/or ePassports; eSIM) is introduced here to\npermissionless blockchains in order to remove the inefficiencies of\nSybil-resistant mechanisms such as Proof-of-Work (i.e., high energy and\nenvironmental costs) and Proof-of-Stake (i.e., capital hoarding and lower\ntransaction volume). The proposed solution effectively limits the number of\nmining nodes a single individual would be able to run while keeping membership\nopen to everyone, circumventing the impossibility of full decentralization and\nthe blockchain scalability trilemma when instantiated on a blockchain with a\nconsensus protocol based on the cryptographic random selection of nodes.\nResistance to collusion is also considered.\n Solving one of the most pressing problems in blockchains, a zk-PoI\ncryptocurrency is proved to have the following advantageous properties:\n - an incentive-compatible protocol for the issuing of cryptocurrency rewards\nbased on a unique Nash equilibrium\n - strict domination of mining over all other PoW/PoS cryptocurrencies, thus\nthe zk-PoI cryptocurrency becoming the preferred choice by miners is proved to\nbe a Nash equilibrium and the Evolutionarily Stable Strategy\n - PoW/PoS cryptocurrencies are condemned to pay the Price of Crypto-Anarchy,\nredeemed by the optimal efficiency of zk-PoI as it implements the social\noptimum\n - the circulation of a zk-PoI cryptocurrency Pareto dominates other PoW/PoS\ncryptocurrencies\n - the network effects arising from the social networks inherent to national\nidentity cards and ePassports dominate PoW/PoS cryptocurrencies\n - the lower costs of its infrastructure imply the existence of a unique\nequilibrium where it dominates other forms of payment\n