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The fluid limit of a random graph model for a shared ledger

Published online by Cambridge University Press:  17 March 2021

Christopher King*
Affiliation:
Northeastern University
*
*Postal address: Department of Mathematics, Northeastern University, Boston, MA 02115. Email address: c.king@northeastern.edu
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Abstract

A shared ledger is a record of transactions that can be updated by any member of a group of users. The notion of independent and consistent record-keeping in a shared ledger is important for blockchain and more generally for distributed ledger technologies. In this paper we analyze a stochastic model for the shared ledger known as the tangle, which was devised as the basis for the IOTA cryptocurrency. The model is a random directed acyclic graph, and its growth is described by a non-Markovian stochastic process. We first prove ergodicity of the stochastic process, and then derive a delay differential equation for the fluid model which describes the tangle at high arrival rate. We prove convergence in probability of the tangle process to the fluid model, and also prove global stability of the fluid model. The convergence proof relies on martingale techniques.

Information

Type
Original Article
Copyright
© The Author(s), 2021. Published by Cambridge University Press on behalf of Applied Probability Trust
Figure 0

Figure 1: (a) Blockchain where each block is linked to the previous one. (b) Miners compete to add the next block to the head of the chain, and (c) the winner becomes the new head of the chain.

Figure 1

Figure 2: The attachment of a new vertex to the DAG. (a) The new vertex arrives at time $t_n$ and selects $x_1(n)$, $x_2(n)$ for validation. (b) After delay h, at time $t_n+h=t_{n+m}$ the new vertex $y_n$ is added to the tangle.

Figure 2

Figure 3: The growth of the DAG over several successive steps. (a) The vertices a, b, c are tips on the DAG; each is connected to two other vertices somewhere in the graph. A new arrival has selected a, b for proof of work, so these are pending tips, while c is a free tip. (b) A new arrival selects a, c for proof of work, so a, b, c are all pending tips. (c) The vertex d completes its proof of work and is attached to the DAG, so a, b are no longer tips. Meanwhile a new arrival has selected c and d for proof of work. (d) The vertex e is added to the DAG, so c is no longer a tip, while a new arrival selects d and some other tip for proof of work.