International Association
for Cryptologic Research

Game-theoretic analysis of cryptocurrencies and, more generally, blockchain-based decentralized ledgers offers insight on their economic robustness, and their behavior when even the cryptographic assumptions that underpin their security fail. In this work we utilize the recently proposed blockchain adaptation of the rational protocol design (RPD) framework [EUROCRYPT~'18] to analyze 51\% double-spending attacks against Nakamoto-style cryptocurrencies. We observe a property of the originally proposed utility class that yields an unnatural behavior against such attacks, and show how to devise a utility that avoids this pitfall and makes predictions that match the observable behavior---i.e., that renders attacking a dominant strategy in settings where an attack was indeed observed. We then propose a generic modification to the underlying protocol which deters attacks on consistency by adversaries controlling a majority of the system's resources, including the 51\% double-spending attack. This can be used as guidance to patch systems that have suffered such attacks, e.g., Ethereum Classic and Bitcoin Cash, and serves as a demonstration of the power of game-theoretic analyses.