SPECTRE : Serialization of Proof-of-work Events : Confirming Transactions via Recursive Elections

Bitcoin utilizes Nakamoto Consensus to achieve agreement on a consistent set of transactions, in the permissionless setting, where anyone can participate in the protocol anonymously. Since its rise, many other permissionless consensus protocols have been proposed. We present SPECTRE, a new protocol for the consensus core of cryptocurrencies that remains secure even under high throughput and fast confirmation times. At any throughput, SPECTRE is resilient to attackers with up to 50% of the computational power (reaching the limit defined by network congestion and bandwidth constraints). SPECTRE can operate at arbitrarily high block creation rates, which implies that its transactions confirm in mere seconds (limited mostly by the round-trip-time in the network). SPECTRE’s underlying model falls into the category of partial synchronous networks: its security depends on the existence of some bound on the delivery time of messages between honest participants, but the protocol itself does not contain any parameter that depends on this bound. Hence, while other protocols that do encode such parameters must operate with extreme safety margins, SPECTRE converges according to the actual network delay. Key to SPECTRE’s achievements is the fact that it satisfies weaker properties than classic consensus requires. In the conventional paradigm, the order between any two transactions must be decided and agreed upon by all non-corrupt nodes. In contrast, SPECTRE only satisfies this with respect to transactions performed by honest users. We observe that in the context of money, two conflicting payments that are published concurrently could only have been created by a dishonest user, hence we can afford to delay the acceptance of such transactions without harming the usability of the system. Our framework formalizes this weaker set of requirements for a cryptocurrency’s distributed ledger. We then provide a formal proof that SPECTRE satisfies these requirements.