Game theory based compatible incentive mechanism design for non-cryptocurrency blockchain systems

Li, X; Liu, Q; Wu, S; Cao, Z; Bai, Q

Game theory based compatible incentive mechanism design for non-cryptocurrency blockchain systems

Li, X Liu, Q Wu, S

Cao, Z

Bai, Q

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Publisher:: Elsevier BV
Publication Type:: Journal Article
Citation:: Journal of Industrial Information Integration, 2023, 31, pp. 100426
Issue Date:: 2023-02-01

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Field	Value	Language
dc.contributor.author	Li, X
dc.contributor.author	Liu, Q
dc.contributor.author	Wu, S https://orcid.org/0000-0001-6785-1203
dc.contributor.author	Cao, Z https://orcid.org/0000-0003-3656-0328
dc.contributor.author	Bai, Q
dc.date.accessioned	2023-02-02T02:17:43Z
dc.date.available	2023-02-02T02:17:43Z
dc.date.issued	2023-02-01
dc.identifier.citation	Journal of Industrial Information Integration, 2023, 31, pp. 100426
dc.identifier.issn	2452-414X
dc.identifier.uri	http://hdl.handle.net/10453/165831
dc.description.abstract	With the success of Bitcoin, nowadays, both academia and industry have been focusing on the expansion of blockchain in non-cryptocurrency applications to facilitate the development of Industry 4.0. The incentive mechanism in blockchain, which encourages miners to participate in validation processes, is important to the maintenance of the system. However, the techniques, which are widely applied in existing blockchain systems, are not suitable for non-cryptocurrency applications with business models and have become a major issue that undermines the adoption of blockchain. In this paper, we propose a compatible incentive mechanism for non-cryptocurrency applications to encourage validators’ actions to align with consensus algorithm. The compatible incentive mechanism works with a consensus algorithm to make the blockchain technology more adaptable in industry applications. The proposed design matches with the voting-based Practical Byzantine Fault Tolerance (PBFT) consensus algorithm which is adopted by most non-cryptocurrency applications. Game theory-based analysis is conducted to identify the problems caused by participants’ misbehaviours. Meanwhile, a mechanism design based on game theory analysis is adopted to develop our incentive mechanism which satisfies the compatibility requirement. Both mathematical proof and simulation experiments are used to evaluate our mechanism design. The results demonstrate that our compatible incentive mechanism encourages the desired honest behaviour among validators so that the blockchain can be maintained to align with the consensus algorithm.
dc.language	en
dc.publisher	Elsevier BV
dc.relation.ispartof	Journal of Industrial Information Integration
dc.relation.isbasedon	10.1016/j.jii.2022.100426
dc.rights	info:eu-repo/semantics/closedAccess
dc.title	Game theory based compatible incentive mechanism design for non-cryptocurrency blockchain systems
dc.type	Journal Article
utslib.citation.volume	31
pubs.organisational-group	/University of Technology Sydney
pubs.organisational-group	/University of Technology Sydney/Faculty of Engineering and Information Technology
pubs.organisational-group	/University of Technology Sydney/Faculty of Engineering and Information Technology/School of Computer Science
utslib.copyright.status	closed_access	*
dc.date.updated	2023-02-02T02:17:39Z
pubs.publication-status	Accepted
pubs.volume	31

Abstract:

With the success of Bitcoin, nowadays, both academia and industry have been focusing on the expansion of blockchain in non-cryptocurrency applications to facilitate the development of Industry 4.0. The incentive mechanism in blockchain, which encourages miners to participate in validation processes, is important to the maintenance of the system. However, the techniques, which are widely applied in existing blockchain systems, are not suitable for non-cryptocurrency applications with business models and have become a major issue that undermines the adoption of blockchain. In this paper, we propose a compatible incentive mechanism for non-cryptocurrency applications to encourage validators’ actions to align with consensus algorithm. The compatible incentive mechanism works with a consensus algorithm to make the blockchain technology more adaptable in industry applications. The proposed design matches with the voting-based Practical Byzantine Fault Tolerance (PBFT) consensus algorithm which is adopted by most non-cryptocurrency applications. Game theory-based analysis is conducted to identify the problems caused by participants’ misbehaviours. Meanwhile, a mechanism design based on game theory analysis is adopted to develop our incentive mechanism which satisfies the compatibility requirement. Both mathematical proof and simulation experiments are used to evaluate our mechanism design. The results demonstrate that our compatible incentive mechanism encourages the desired honest behaviour among validators so that the blockchain can be maintained to align with the consensus algorithm.

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http://hdl.handle.net/10453/165831