Security analysis of blockchain utilizing proof-of-stake consensus mechanism

• Main Author: Koo, Stevenson Wei Jun
• Other Authors: Chan Chee Keong
• Format: Final Year Project
• Language: English
• Published: Nanyang Technological University 2023
• Subjects: Engineering::Electrical and electronic engineering
• Online Access: https://hdl.handle.net/10356/167832
• Institution: Nanyang Technological University

Blockchain is becoming a disruptive technology that is revolutionising the Internet and potentially enabling a transparent, free and permissionless Internet where people can own and be rightfully rewarded for their own content. At the core of every blockchain network lies their consensus mechanism, which ensures that all nodes in the network validate transactions and maintain the ledger's integrity. Proof-of-Stake (PoS) is a consensus mechanism gaining popularity over the traditional Proof-of-Work (PoW) due to its energy efficiency, scalability, and reduced centralization. In PoS, validators are chosen based on their stake in the network, in contrast to solving complex mathematical puzzles in PoW. The project examines PoS's principles and concepts, compares it to PoW, and discusses potential security threats and attack vectors in PoS-based networks. Strategies to mitigate threats like slashing penalties, checkpointing, and multi-party computation are explored, along with the importance of decentralization, validator distribution, and economic incentives for network security. The project explores the various strategies and mechanisms employed to mitigate these threats. Strategies to mitigate threats such as slashing penalties, checkpointing, and multi-party computation. In addition, the project highlights the significance of network decentralization, validator distribution, and economic incentives in maintaining the security and integrity of PoS-based blockchain networks. The project concludes with a summary of the security analysis of blockchain utilising PoS consensus mechanisms, outlining the key challenges and opportunities for future research in this field.