[Paper Review] The Trailer of Strategic Alliance for Blockchain Governance Game.

Song-Kyoo Kim|arXiv (Cornell University)|Mar 24, 2019

Blockchain Technology Applications and Security8 references4 citations

TL;DR

This paper proposes a hybrid blockchain governance model that integrates strategic alliances among genuine miners using stochastic game theory and fluctuation theory to enhance network security. By analytically deriving optimal alliance timing and size, the framework enables proactive defense against attackers, offering a decision-support system for secure blockchain deployment and initial coin offerings.

ABSTRACT

This paper deals with design of the alternative secure Blockchain network framework to prevent damages from an attacker. The concept of the strategic alliance of the management is applied on the top of the recent developed stochastic game framework. This new enhanced hybrid theoretical model has been developed based on the combination of the conventional game theory, the fluctuation theory and the Blockchain Governance Game to find best strategies towards preparation for preventing a network malfunction from an attacker by making the strategic alliance with other genuine miners. Analytically tractable results for decision making parameters are fully obtained which enable to predict the moment for operations and deliver the optimal number of the alliance with other nodes to protect the Blockchain network. This research helps for whom considers the initial coin offering or launching new blockchain based services with enhancing the security features by alliance with the trusted miners within the decentralized network.

Motivation & Objective

• To address the vulnerability of blockchain networks to malicious attacks by developing a proactive defense mechanism.
• To model the strategic interaction among miners as a stochastic game to predict optimal alliance formation.
• To integrate fluctuation theory with blockchain governance to improve resilience against network malfunction.
• To provide decision-making parameters for launching secure blockchain services or initial coin offerings.
• To determine the optimal number and timing of alliances with trusted miners to maximize network protection.

Proposed method

• The framework combines conventional game theory with stochastic game theory to model strategic interactions among miners.
• Fluctuation theory is applied to analyze dynamic changes in network conditions and attacker behavior.
• A hybrid theoretical model is constructed by integrating blockchain governance mechanisms with strategic alliance dynamics.
• Analytical solutions are derived for decision-making parameters, including optimal alliance size and operational timing.
• The model predicts the moment to initiate alliances and the number of trusted nodes to include for maximum protection.
• The approach enables quantifiable decision support for network operators seeking to enhance security through collaboration.

Experimental results

Research questions

• RQ1 How can strategic alliances among genuine miners be modeled to proactively defend against blockchain network attacks?
• RQ2 What is the optimal timing for forming alliances to prevent network malfunction due to malicious actors?
• RQ3 What is the optimal number of trusted miners to include in an alliance for maximum security enhancement?
• RQ4 How does the integration of fluctuation theory improve the predictive power of the blockchain governance model?
• RQ5 What decision-making parameters can be derived to support secure deployment of new blockchain services or ICOs?

Key findings

• The hybrid model enables analytical derivation of optimal alliance timing and size, providing actionable decision parameters.
• The integration of stochastic game theory and fluctuation theory enhances the model's ability to predict attacker behavior and network instability.
• The framework supports proactive network protection by identifying the precise moment to initiate strategic alliances.
• The model delivers a quantifiable strategy for minimizing risk in blockchain networks through collaboration with trusted miners.
• The results are directly applicable to initial coin offerings and new blockchain service launches, improving their security posture.
• The analytical tractability of the model allows for real-time decision support in dynamic network environments.