Trade-off of Security, Latency, and Throughput of the Nakamoto Consensus. (arXiv:2312.05506v2 [cs.CR] UPDATED)

This paper delves into the fundamental trade-off between security, latency,
and throughput in proof-of-work longest-chain-wins protocols, also known as the
Nakamoto consensus. New upper and lower bounds on the probability of violating
transaction safety are derived as a function of honest and adversarial mining
rates, an upper bound on block propagation delays, and transaction confirmation
latency, both in time and in block depth. The results include a first
closed-form finite-latency bound applicable to all delays and mining rates up
to …

adversarial function latency mining proof protocols safety security trade transaction wins work