1 of 145

Section 2.4

Proof of�Authority

Reinstating a central authority to solve the double spend problem… Maybe better than a client/server architecture, but still not great.

2 of 145

0x2a2

0xbc1

0x6e2

Proof of Authority

0x171

3 of 145

Proof of Authority

0x2a2

0xbc1

0x6e2

0x171

4 of 145

Proof of Authority

0x2a2

0xbc1

0x6e2

0x171

5 of 145

Proof of Authority

0x2a2

0xbc1

0x6e2

0x171

6 of 145

Proof of Authority

0x2a2

0xbc1

0x6e2

0x171

7 of 145

Proof of Authority

0x2a2

0xbc1

0x6e2

0x171

0x13d

8 of 145

Proof of Authority

0x2a2

0xbc1

0x6e2

0x171

0

$100

0x13d

9 of 145

Proof of Authority

0x2a2

0xbc1

0x6e2

0x171

0x13d

10 of 145

Proof of Authority

0x2a2

0xbc1

0x6e2

0x171

0x13d

11 of 145

Proof of Authority

0x2a2

0xbc1

0x6e2

0x171

0x13d

12 of 145

Proof of Authority

0x2a2

0xbc1

0x6e2

0x171

0x13d

13 of 145

Proof of Authority

0x2a2

0xbc1

0x6e2

0x171

0x13d

0

$100

14 of 145

Proof of Authority

0x2a2

0xbc1

0x6e2

0x171

0x13d

0

$100

15 of 145

Proof of Authority

0x2a2

0xbc1

0x6e2

0x171

$100

0x13d

16 of 145

Proof of Authority

0x2a2

0xbc1

0x6e2

0x171

0

$100

0

0x13d

17 of 145

Proof of Authority

0x2a2

0xbc1

0x6e2

0x171

0

$100

0

0x13d

18 of 145

Proof of Authority

0x2a2

0xbc1

0x6e2

0x171

0

$100

0

0x13d

19 of 145

Proof of Authority

0x2a2

0xbc1

0x6e2

0x171

0

$100

0

0x13d

20 of 145

Proof of Authority

0x2a2

0xbc1

0x6e2

0x171

0

$100

0

0x13d

21 of 145

Proof of Authority

0x2a2

0xbc1

0x6e2

0x171

0

$100

0

0x13d

22 of 145

Proof of Authority

0x2a2

0xbc1

0x6e2

0x171

0

$100

0

0x13d

23 of 145

Proof of Authority

0x2a2

0xbc1

0x6e2

0x171

0

$100

0

0x13d

24 of 145

Proof of Authority

0x2a2

0xbc1

0x6e2

0x171

0

$100

0

0x13d

25 of 145

Proof of Authority

0x2a2

0xbc1

0x6e2

0x171

0

$100

0

0

$100

0

$100

0x13d

26 of 145

Proof of Authority

0x2a2

0xbc1

0x6e2

0x171

0

$100

0

0x13d

27 of 145

Proof of Authority

0x2a2

0xbc1

0x6e2

0x171

0

$100

0

0x13d

28 of 145

Proof of Authority

0x2a2

0xbc1

0x6e2

0x171

0

$100

0

0x13d

29 of 145

Proof of Authority

0x2a2

0xbc1

0x6e2

0x171

0

$100

0

0x13d

30 of 145

Proof of Authority

0x2a2

0xbc1

0x6e2

0x171

0

$100

0

0

$100

0x13d

31 of 145

Proof of Authority

0x2a2

0xbc1

0x6e2

0x171

0

$100

0

0

1

0

$100

0x13d

32 of 145

Proof of Authority

0x2a2

0xbc1

0x6e2

0x171

0

$100

0

0

1

0

$100

0

$100

0x13d

33 of 145

Proof of Authority

0x2a2

0xbc1

0x6e2

0x171

0

$100

0

0

1

0

$100

0

$100

2

0x13d

34 of 145

Proof of Authority

0x2a2

0xbc1

0x6e2

0x171

0

$100

0

0

1

0

$100

0

$100

2

0x13d

35 of 145

Proof of Authority

0x2a2

0xbc1

0x6e2

0x171

0

$100

0

0

1

0

$100

0

$100

2

0x13d

36 of 145

Proof of Authority

0x2a2

0xbc1

0x6e2

0x171

0

$100

0

0

1

0

$100

0

$100

2

0x13d

37 of 145

Proof of Authority

0x2a2

0xbc1

0x6e2

0x171

0

$100

0

0

1

0

$100

0

$100

2

0x13d

38 of 145

Proof of Authority

0x2a2

0xbc1

0x6e2

0x171

0

$100

0

0

1

0

$100

0

$100

2

0x13d

39 of 145

Proof of Authority

0x2a2

0xbc1

0x6e2

0x171

0

$100

0

0

1

0

$100

0

$100

2

0x13d

40 of 145

Proof of Authority

0x2a2

0xbc1

0x6e2

0x171

0

$100

0

0

1

0

$100

0

$100

2

0x13d

41 of 145

Proof of Authority

0x2a2

0xbc1

0x6e2

0x171

0

$100

0

0

1

0

$100

0

$100

2

0x13d

42 of 145

0x6e2

0x171

0xbc1

0x2a2

Proof of Authority

43 of 145

0x6e2

0x171

0xbc1

0x2a2

Proof of Authority

44 of 145

0x6e2

0x171

0xbc1

Proof of Authority

balances = {

0x171: 0,

0x2a2: 100,

0xbc1: 100,

0x6e2: 200

}

balances = {

0x171: 0,

0x2a2: 100,

0xbc1: 100,

0x6e2: 200

}

0x2a2

balances = {

0x171: 0,

0x2a2: 100,

0xbc1: 100,

0x6e2: 200

}

balances = {

0x171: 0,

0x2a2: 100,

0xbc1: 100,

0x6e2: 200

}

45 of 145

0x6e2

0x171

0xbc1

Proof of Authority

balances = {

0x171: 0,

0x2a2: 100,

0xbc1: 100,

0x6e2: 200

}

balances = {

0x171: 0,

0x2a2: 100,

0xbc1: 100,

0x6e2: 200

}

0x2a2

balances = {

0x171: 0,

0x2a2: 100,

0xbc1: 100,

0x6e2: 200

}

balances = {

0x171: 0,

0x2a2: 100,

0xbc1: 100,

0x6e2: 200

}

46 of 145

0x6e2

0x171

0xbc1

Proof of Authority

balances = {

0x171: 0,

0x2a2: 100,

0xbc1: 100,

0x6e2: 200

}

balances = {

0x171: 0,

0x2a2: 100,

0xbc1: 100,

0x6e2: 200

}

0x2a2

balances = {

0x171: 0,

0x2a2: 100,

0xbc1: 100,

0x6e2: 200

}

balances = {

0x171: 0,

0x2a2: 100,

0xbc1: 100,

0x6e2: 200

}

47 of 145

0x6e2

0x171

0xbc1

0x2a2

Proof of Authority

48 of 145

0x6e2

0x171

0xbc1

0x2a2

Proof of Authority

0x13d

49 of 145

0x6e2

0x171

0xbc1

0x2a2

0

$100

0

0

1

0

$100

0

$100

2

Proof of Authority

0x13d

50 of 145

0x6e2

0x171

0xbc1

0x2a2

0

$100

0

0

1

0

$100

0

$100

2

Proof of Authority

0x13d

51 of 145

0x6e2

0x171

0xbc1

0x2a2

0

$100

0

0

1

0

$100

0

$100

2

Proof of Authority

0x13d

52 of 145

0x6e2

0x171

0xbc1

0x2a2

0

$100

0

0

1

0

$100

0

$100

2

Proof of Authority

0x13d

53 of 145

0x6e2

0x171

0xbc1

0x2a2

0

$100

0

0

1

0

$100

0

$100

2

Proof of Authority

0x13d

54 of 145

0x6e2

0x171

0xbc1

0x2a2

0

$100

0

0

1

0

$100

0

$100

2

Proof of Authority

0x13d

55 of 145

0x6e2

0x171

0xbc1

0x2a2

0

$100

0

0

1

0

$100

0

$100

2

Proof of Authority

0x13d

56 of 145

0x6e2

0x171

0xbc1

0x2a2

0

$100

0

0

1

0

$100

0

$100

2

Proof of Authority

0x13d

57 of 145

0x6e2

0x171

0xbc1

0x2a2

0

$100

0

0

1

0

$100

0

$100

2

Proof of Authority

0x13d

58 of 145

0x6e2

0x171

0xbc1

0x2a2

0

$100

0

0

1

0

$100

0

$100

2

Proof of Authority

0x13d

  1. Double Spends

​

59 of 145

0x6e2

0x171

0xbc1

0x2a2

0

$100

0

0

1

0

$100

0

$100

2

Proof of Authority

0x13d

  • Double Spends
  • Censorship

60 of 145

0x6e2

0x171

0xbc1

0x2a2

0

$100

0

0

1

0

$100

0

$100

2

Proof of Authority

0x13d

  • Double Spends
  • Censorship

61 of 145

Proof of Authority

0x2a2

0xbc1

0x6e2

0x171

0

$100

0

0

1

0

$100

0

$100

2

0x13d

62 of 145

Proof of Authority

0x2a2

0xbc1

0x6e2

0x171

0

$100

0

0

1

0

$100

0

$100

2

0x13d

63 of 145

Proof of Authority

0x2a2

0xbc1

0x6e2

0x171

0

$100

0

0

1

0

$100

0

$100

1

0x13d

64 of 145

Proof of Authority

0x2a2

0xbc1

0x6e2

0x171

0

$100

0

0

1

0

$100

0

$100

1

0x13d

65 of 145

Proof of Authority

0x2a2

0xbc1

0x6e2

0x171

0

$100

0

0

1

0

$100

0x13d

0

$100

1

66 of 145

Proof of Authority

0x2a2

0xbc1

0x6e2

0x171

0

$100

0

0

1

0

$100

0

$100

1

0x13d

67 of 145

Proof of Authority

0x2a2

0xbc1

0x6e2

0x171

0

$100

0

0

1

0

$100

0x13d

0

$100

1

68 of 145

Proof of Authority

0x2a2

0xbc1

0x6e2

0x171

0

$100

0

0

1

0

$100

0x13d

0

$100

1

Which comes first?!

69 of 145

Proof of Authority

0x2a2

0xbc1

0x6e2

0x171

0

$100

0

0

1

0

$100

0x13d

0

$100

1

Which comes first?!

70 of 145

0x6e2

0x171

0xbc1

0x2a2

0

$100

0

0

1

0

$100

0

$100

2

Proof of Authority

0x13d

  • Double Spends
  • Censorship

71 of 145

0x6e2

0x171

0xbc1

0x2a2

0

$100

0

0

1

0

$100

0

$100

2

Proof of Authority

0x13d

  • Double Spends
  • Censorship

72 of 145

Proof of Authority

0x2a2

0xbc1

0x6e2

0x171

0

$100

0

0

1

0

$100

0

$100

2

0x13d

73 of 145

Proof of Authority

0x2a2

0xbc1

0x6e2

0x171

0

$100

0

0

1

0

$100

0

$100

2

0x13d

74 of 145

Proof of Authority

0x2a2

0xbc1

0x6e2

0x171

0

$100

0

0

1

0

$100

0

$100

2

0x13d

75 of 145

Proof of Authority

0x2a2

0xbc1

0x6e2

0x171

0

$100

0

0

1

0

$100

0

$100

2

0x13d

1

$100

76 of 145

Proof of Authority

0x2a2

0xbc1

0x6e2

0x171

0

$100

0

0

1

0

$100

0

$100

2

0x13d

77 of 145

Proof of Authority

0x2a2

0xbc1

0x6e2

0x171

0

$100

0

0

1

0

$100

0

$100

2

0x13d

78 of 145

Proof of Authority

0x2a2

0xbc1

0x6e2

0x171

0

$100

0

0

1

0

$100

0

$100

2

0x13d

79 of 145

Proof of Authority

0x2a2

0xbc1

0x6e2

0x171

0

$100

0

0

1

0

$100

0

$100

2

0x13d

80 of 145

Proof of Authority

0x2a2

0xbc1

0x6e2

0x171

0

$100

0

0

1

0

$100

0

$100

2

0x13d

81 of 145

Proof of Authority

0x2a2

0xbc1

0x6e2

0x171

0

$100

0

0

1

0

$100

0

$100

2

0x13d

1

$100

82 of 145

Proof of Authority

0x2a2

0xbc1

0x6e2

0x171

0

$100

0

0

1

0

$100

0

$100

2

0x13d

1

$100

83 of 145

Proof of Authority

0x2a2

0xbc1

0x6e2

0x171

0

$100

0

0

1

0

$100

0

$100

2

0x13d

1

$100

84 of 145

Proof of Authority

0x2a2

0xbc1

0x6e2

0x171

0

$100

0

0

1

0

$100

0

$100

2

0x13d

1

$100

85 of 145

Proof of Authority

0x2a2

0xbc1

0x6e2

0x171

0

$100

0

0

1

0

$100

0

$100

2

0x13d

1

$100

86 of 145

Proof of Authority

0x2a2

0xbc1

0x6e2

0x171

0

$100

0

0

1

0

$100

0

$100

2

0x13d

87 of 145

Proof of Authority

0x2a2

0xbc1

0x6e2

0x171

0

$100

0

0

1

0

$100

0

$100

2

0x13d

88 of 145

Proof of Authority

0x2a2

0xbc1

0x6e2

0x171

0

$100

0

0

1

0

$100

0

$100

2

0x13d

1

$100

89 of 145

Proof of Authority

0x2a2

0xbc1

0x6e2

0x171

0

$100

0

0

1

0

$100

0

$100

2

0x13d

90 of 145

Proof of Authority

0x2a2

0xbc1

0x6e2

0x171

0

$100

0

0

1

0

$100

0

$100

2

0x13d

91 of 145

Proof of Authority

0x2a2

0xbc1

0x6e2

0x171

0

$100

0

0

1

0

$100

0

$100

2

0x13d

92 of 145

Proof of Authority

0x2a2

0xbc1

0x6e2

0x171

0

$100

0

0

1

0

$100

0

$100

2

0x13d

93 of 145

Proof of Authority

0x2a2

0xbc1

0x6e2

0x171

0

$100

0

0

1

0

$100

0

$100

2

0x13d

94 of 145

Proof of Authority

0x2a2

0xbc1

0x6e2

0x171

0

$100

0

0

1

0

$100

0

$100

2

0x13d

1

$100

95 of 145

Proof of Authority

0x2a2

0xbc1

0x6e2

0x171

0

$100

0

0

1

0

$100

0

$100

2

0x13d

1

$100

96 of 145

Proof of Authority

0x2a2

0xbc1

0x6e2

0x171

0

$100

0

0

1

0

$100

0

$100

2

0x13d

1

$100

97 of 145

Proof of Authority

0x2a2

0xbc1

0x6e2

0x171

0

$100

0

0

1

0

$100

0

$100

2

0x13d

1

$100

98 of 145

Proof of Authority

0x2a2

0xbc1

0x6e2

0x171

0

$100

0

0

1

0

$100

0

$100

2

0x13d

1

$100

99 of 145

Proof of Authority

0x2a2

0xbc1

0x6e2

0x171

0

$100

0

0

1

0

$100

0

$100

2

0x13d

100 of 145

Proof of Authority

0x2a2

0xbc1

0x6e2

0x171

0

$100

0

0

1

0

$100

0

$100

2

0x13d

101 of 145

Proof of Authority

0x2a2

0xbc1

0x6e2

0x171

0

$100

0

0

1

0

$100

0

$100

2

0x13d

CENSORSHIP SUCCESSFUL

102 of 145

Proof of Authority

0x2a2

0xbc1

0x6e2

0x171

0

$100

0

0

1

0

$100

0

$100

2

0x13d

CENSORSHIP SUCCESSFUL

103 of 145

Proof of Authority

0x2a2

0xbc1

0x6e2

0x171

0

$100

0

0

1

0

$100

0

$100

2

0x13d

CENSORSHIP SUCCESSFUL

Potential Mitigation:

104 of 145

Proof of Authority

0x2a2

0xbc1

0x6e2

0x171

0

$100

0

0

1

0

$100

0

$100

2

0x13d

CENSORSHIP SUCCESSFUL

Potential Mitigation:

Politically decentralize the authority

105 of 145

0x2a2

0xbc1

0x6e2

0x171

0

$100

0

0

1

0

$100

0

$100

2

0x13d

Proof of Authority: Politically Decentralized?

106 of 145

0x2a2

0xbc1

0x6e2

0x171

0x13d

Proof of Authority: Politically Decentralized?

107 of 145

0x2a2

0xbc1

0x6e2

0x171

Proof of Authority: Politically Decentralized?

0x13d

0xee1

0xfb3

0xf42

108 of 145

0x2a2

0xbc1

0x6e2

0x171

Proof of Authority: Politically Decentralized?

0x13d

0xee1

0xfb3

0xf42

109 of 145

0x2a2

0xbc1

0x6e2

0x171

Proof of Authority: Politically Decentralized?

0x13d

0xee1

0xfb3

0xf42

Multisig!

110 of 145

0x2a2

0xbc1

0x6e2

0x171

Proof of Authority: Politically Decentralized?

0x13d

0xee1

0xfb3

0xf42

Multisig!

0

$100

111 of 145

0x2a2

0xbc1

0x6e2

0x171

Proof of Authority: Politically Decentralized?

0x13d

0xee1

0xfb3

0xf42

Multisig!

0

$100

0

112 of 145

0x2a2

0xbc1

0x6e2

0x171

Proof of Authority: Politically Decentralized?

0x13d

0xee1

0xfb3

0xf42

Multisig!

0

$100

0

113 of 145

0x2a2

0xbc1

0x6e2

0x171

Proof of Authority: Politically Decentralized?

0x13d

0xee1

0xfb3

0xf42

Multisig!

0

$100

0

2/4

114 of 145

0x2a2

0xbc1

0x6e2

0x171

Proof of Authority: Politically Decentralized?

0x13d

0xee1

0xfb3

0xf42

Multisig!

0

$100

0

3/4

115 of 145

0x2a2

0xbc1

0x6e2

0x171

Proof of Authority: Politically Decentralized?

0x13d

0xee1

0xfb3

0xf42

Multisig!

0

$100

0

4/4

116 of 145

0x2a2

0xbc1

0x6e2

0x171

Proof of Authority: Politically Decentralized?

0x13d

0xee1

0xfb3

0xf42

Multisig!

0

$100

0

4/4

117 of 145

0x2a2

0xbc1

0x6e2

0x171

Proof of Authority: Politically Decentralized?

0x13d

0xee1

0xfb3

0xf42

Multisig!

0

$100

0

2/4

118 of 145

0x2a2

0xbc1

0x6e2

0x171

Proof of Authority: Politically Decentralized?

0x13d

0xee1

0xfb3

0xf42

119 of 145

0x2a2

0xbc1

0x6e2

0x171

Proof of Authority: Politically Decentralized?

0x13d

0xee1

0xfb3

0xf42

120 of 145

0x2a2

0xbc1

0x6e2

0x171

Proof of Authority: Politically Decentralized?

0x13d

0xee1

0xfb3

0xf42

121 of 145

0x2a2

0xbc1

0x6e2

0x171

Proof of Authority: Politically Decentralized?

0x13d

0xf42

0xee1

0xfb3

  • Double Spends
  • Censorship

122 of 145

0x2a2

0xbc1

0x6e2

0x171

Proof of Authority: Politically Decentralized?

0x13d

0xf42

0xee1

0xfb3

No open access!

  • Double Spends
  • Censorship

123 of 145

0x2a2

0xbc1

0x6e2

0x171

Proof of Authority: Politically Decentralized?

0x13d

0xf42

0xee1

0xfb3

No open access!

No in-protocol penalties!

  • Double Spends
  • Censorship

124 of 145

0x2a2

0xbc1

0x6e2

0x171

Proof of Authority: Politically Decentralized?

0x13d

0xf42

0xee1

0xfb3

No open access!

No in-protocol penalties!

  • Double Spends
  • Censorship

125 of 145

0x2a2

0xbc1

0x6e2

0x171

Proof of Authority: Politically Decentralized?

0x13d

0xf42

0xee1

0xfb3

No open access!

No in-protocol penalties!

  • Double Spends
  • Censorship

There’s another way!

126 of 145

Decentralized Consensus

0x2a2

0xbc1

0x6e2

0x171

127 of 145

Decentralized Consensus

0x2a2

0xbc1

0x6e2

0x171

128 of 145

Decentralized Consensus

0x2a2

0xbc1

0x6e2

0x171

129 of 145

Decentralized Consensus

0x2a2

0xbc1

0x6e2

0x171

130 of 145

Decentralized Consensus

0x2a2

0xbc1

0x6e2

0x171

131 of 145

Decentralized Consensus

0x2a2

0xbc1

0x6e2

0x171

132 of 145

Decentralized Consensus

0x2a2

0xbc1

0x6e2

0x171

133 of 145

Decentralized Consensus

0x2a2

0xbc1

0x6e2

0x171

Open access to participate

​

134 of 145

Decentralized Consensus

0x2a2

0xbc1

0x6e2

0x171

Open access to participate

​

135 of 145

Decentralized Consensus

0x2a2

0xbc1

0x6e2

0x171

136 of 145

Decentralized Consensus

0x2a2

0xbc1

0x6e2

0x171

Economic rewards for good behavior

​

137 of 145

Decentralized Consensus

0x2a2

0xbc1

0x6e2

0x171

Economic rewards for good behavior

​

138 of 145

Decentralized Consensus

0x2a2

0xbc1

0x6e2

0x171

Economic rewards for good behavior

​

139 of 145

Decentralized Consensus

0x2a2

0xbc1

0x6e2

0x171

Economic rewards for good behavior

​

140 of 145

Decentralized Consensus

0x2a2

0xbc1

0x6e2

0x171

Economic rewards for good behavior

Economic penalties for bad behavior

141 of 145

Decentralized Consensus

0x2a2

0xbc1

0x6e2

0x171

Economic rewards for good behavior

Economic penalties for bad behavior

142 of 145

Decentralized Consensus

0x2a2

0xbc1

0x6e2

0x171

Economic rewards for good behavior

Economic penalties for bad behavior

143 of 145

Next up...

144 of 145

Next up...

Chapter 3

Proof of Work �Mechanism Design

 

Learn proof of work-based consensus protocols & analyze their incentives.

 

 

145 of 145

Next up...

Chapter 3

 

Learn proof of work-based consensus protocols & analyze their incentives.

 

 

Proof of Work �Mechanism Design