This Week in Blockchain Research Issue #93
|zk Capital||Jan 27|
Paper of the Week:
Paper Title: SoK: Decentralized Finance (DeFi).
Decentralized Finance (DeFi), a blockchain powered peer-to-peer financial system, is mushrooming.
One year ago the total value locked in DeFi systems was approximately 600m USD, now, as of January 2021, it stands at around 25bn USD.
The frenetic evolution of the ecosystem makes it challenging for newcomers to gain an understanding of its basic features.
This Systematization of Knowledge (SoK) delineates the DeFi ecosystem along its principal axes.
First, it provides an overview of the DeFi primitives.
Second, it classifies DeFi protocols according to the type of operation they provide.
It then goes on to consider in detail the technical and economic security of DeFi protocols, drawing particular attention to the issues that emerge specifically in the DeFi setting.
Finally, it outlines the open research challenges in the ecosystem.
Authors: Sam M. Werner*, Daniel Perez*, Lewis Gudgeon*, Ariah Klages-Mundt†, Dominik Harz*‡, William J. Knottenbelt*,
Summary: The security of the bitcoin holds as long as the quantum computational hashing power of the adversary in the Quantum Random Oracle model is appropriately bounded.
Summary: An efficient distributed randomness beacon protocol that does not require any trusted or expensive setup and is secure against a malicious adversary that controls up to one-third of the nodes in a partially synchronous network.
Affiliations: * University of Illinois at Urbana-Champaign.
Summary: A pattern that allows the execution of automatable legal contract clauses, where its execution states are stored in an on-chain smart-contract and the logic needed to enforce it wraps it off-chain.
Affiliations: * Universite ́ Paris 1 Panthe ́on-Sorbonne.
Summary: A privacy-oriented protocol of smart contracts that allows authors to issue a bounty for open anonymous peer-reviews on Ethereum.
1. Paper Title: Introducing the Unitychain Structure.
Summary: A novel blockchain-like structure that enables greater parallel processing, security, and performance for networks that leverage distributed key generation and classical consensus protocols.
Authors: Joshua D. Tobkin*
Affiliations: * Unitychain.
Summary: A simple unidirectional payment channel that can be extended to a bidirectional payment channel or a complete network.
Affiliations: * V Systems.
Summary: Several new ZK protocols which improve the concrete efficiency and, at the same time, enable sublinear amortized communication for circuits with some notion of relaxed uniformity.
1. Paper Title: Ethereum ECCPoW.
Summary: An implementation, simulation, and validation of ECCPoW Ethereum.
Authors: Hyoungsung Kim*, Jehyuk Jang*, Sangjun Park†, and Heung-no Lee*,
Affiliations: * Gwangju Institute of Science and Technology and † Electronics and Telecommunications Research Institute.
2. Paper Title: On Elapsed Time Consensus Protocols.
Summary: This work defines and proves the security of the proposed elapsed time consensus protocol both with and without trusted execution environments.
1. Paper Title: Markets for Crypto Tokens, and Security under Proof of Stake.
Summary: To evaluate the robustness of PoS cryptocurrencies to such attacks, this work models the market for tokens and determines how the cost of attacking the system depends on the level and shape of token supply and demand.
2. Paper Title: Uniswap and the Rise of the Decentralized Exchange.
Summary: This work applies ARDL and VAR methodologies to a dataset of 999 hours of Uniswap trading, and concludes that its simplicity enables liquidity providers and arbitrageurs to ensure the ratio of reserves match the trading pair price.
Authors: Yuen C Lo* and Francesca Medda*,
Affiliations: * University College London.
Summary: Are algorithmic stablecoins volatile by design? Are they volatile in practice?
Affiliations: * Huobi Research.
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