Game Theoretic Modelling of a Ransom and Extortion Attack on Ethereum Validators
Alpesh Bhudia, Anna Cartwright, Edward J. Cartwright, Darren Hurley-Smith, Julio Cesar Hernandez-Castro · 2023
Consensus algorithms facilitate agreement on and resolution of blockchain functions, such as smart contracts and transactions. Ethereum uses a Proof-of-Stake (PoS) consensus mechanism, which depends on financial incentives to ensure that validators perform certain duties and do not act maliciously. Should a validator attempt to defraud the system, legitimate validators will identify this and then staked cryptocurrency is ‘burned’ through a process of slashing.