Optimizing Blockchain Protocols with Algorithmic Game Theory

Abstract

Because blockchain technology is changing so quickly, different algorithms have been created to make sure that independent systems are safe, scalable, and efficient. However, as blockchain networks get bigger, protocol efficiency problems get harder to solve. This study looks at how blockchain technology and algorithmic game theory can be used together to solve these problems and suggests a new way to make blockchain systems work better. A part of mathematics called algorithmic game theory studies strategic exchanges where the results depend on the actions of many players. It can instruct us a part almost how to create blockchain frameworks work superior. Able to consider and move forward distinctive parts of convention execution, such as agreement forms, exchange preparing, and network security, by considering of blockchain clients as coherent specialists with their possess objectives. The primary portion of the paper talks approximately essential blockchain conventions, like Confirmation of Work (PoW) and Verification of Stake (PoS), and how they have issues with scaling and proficiency. At that point, we conversation around a few imperative thoughts from algorithmic amusement hypothesis, like Nash equilibrium, component plan, and sell off hypothesis. We appear how these thoughts can be used in blockchain systems. We see at how different game-theoretic strategies can alter how individuals act, make the most excellent utilize of assets, and boost the full execution of systems utilizing complex numerical models and re-enactments. A huge portion of the study is around how game-theoretic forms can be utilized to create assention strategies superior. For illustration, we see at how motivating force structures can be made so that the objectives of mineworkers or validators are adjusted with those of the organize. This brings down the chance of awful behaviour and makes the convention more solid.