Economic Mechanisms in Blockchains

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Consensus mechanisms in Blockchains involve a range of different economic agents. Their willingness to participate in the consensus mechanism and to behave as planned crucially depends on the incentives provided by the mechanism. Using approaches from game theory and mechanism design, we test whether the incentives induce players to behave as it is intended. We show which assumptions must be met in the real world in order for the design to function properly.