On chain game theory applies the principles of game theory to analyze and design incentive structures within blockchain protocols, where all actions and their outcomes are recorded on the distributed ledger. It studies how participants, acting rationally in their own self-interest, interact within the transparent and immutable environment of a blockchain. The goal is to design rules that lead to desired collective behaviors, such as network security and consensus, while mitigating malicious actions. This field is crucial for understanding the economic security of decentralized systems.
Context
News frequently discusses the implications of on chain game theory when analyzing the robustness of new blockchain protocols or evaluating the security of existing ones. Debates surrounding various consensus mechanisms, like Proof-of-Stake, often involve detailed examinations of their underlying game theoretic models. Understanding on chain game theory is essential for assessing the long-term stability and resistance to attack of digital asset networks.
Researchers devised a new AMM mechanism that uses a constant potential function to eliminate MEV, achieving provable strategy proofness at the application layer.
We use cookies to personalize content and marketing, and to analyze our traffic. This helps us maintain the quality of our free resources. manage your preferences below.
Detailed Cookie Preferences
This helps support our free resources through personalized marketing efforts and promotions.
Analytics cookies help us understand how visitors interact with our website, improving user experience and website performance.
Personalization cookies enable us to customize the content and features of our site based on your interactions, offering a more tailored experience.
