CoBRA: A Universal Strategyproof Confirmation Protocol for Quorum-based Proof-of-Stake Blockchains

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Main Authors: Avarikioti, Zeta, Kogias, Eleftherios Kokoris, Neiheiser, Ray, Stefo, Christos
Format: Preprint
Published: 2025
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author Avarikioti, Zeta
Kogias, Eleftherios Kokoris
Neiheiser, Ray
Stefo, Christos
author_facet Avarikioti, Zeta
Kogias, Eleftherios Kokoris
Neiheiser, Ray
Stefo, Christos
contents The security of many Proof-of-Stake (PoS) payment systems relies on quorum-based State Machine Replication (SMR) protocols. While classical analyses assume purely Byzantine faults, real-world systems must tolerate both arbitrary failures and strategic, profit-driven validators. We therefore study quorum-based SMR under a hybrid model with honest, Byzantine, and rational participants. We first establish the fundamental limitations of traditional consensus mechanisms, proving two impossibility results: (1) in partially synchronous networks, no quorum-based protocol can achieve SMR when rational and Byzantine validators collectively exceed $1/3$ of the participants; and (2) even under synchronous network assumptions, SMR remains unattainable if this coalition comprises more than $2/3$ of the validator set. Assuming a synchrony bound $Δ$, we show how to extend any quorum-based SMR protocol to tolerate up to $1/3$ Byzantine and $1/3$ rational validators by modifying only its finalization rule. Our approach enforces a necessary bound on the total transaction volume finalized within any time window $Δ$ and introduces the \emph{strongest chain rule}, which enables efficient finalization of transactions when a supermajority of honest participants provably supports execution. Empirical analysis of Ethereum and Cosmos demonstrates validator participation exceeding the required $5/6$ threshold in over $99%$ of blocks, supporting the practicality of our design. Finally, we present a recovery mechanism that restores safety and liveness after consistency violations, even with up to $5/9$ Byzantine stake and $1/9$ rational stake, guaranteeing full reimbursement of provable client losses.
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id arxiv_https___arxiv_org_abs_2503_16783
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publishDate 2025
record_format arxiv
spellingShingle CoBRA: A Universal Strategyproof Confirmation Protocol for Quorum-based Proof-of-Stake Blockchains
Avarikioti, Zeta
Kogias, Eleftherios Kokoris
Neiheiser, Ray
Stefo, Christos
Cryptography and Security
Distributed, Parallel, and Cluster Computing
The security of many Proof-of-Stake (PoS) payment systems relies on quorum-based State Machine Replication (SMR) protocols. While classical analyses assume purely Byzantine faults, real-world systems must tolerate both arbitrary failures and strategic, profit-driven validators. We therefore study quorum-based SMR under a hybrid model with honest, Byzantine, and rational participants. We first establish the fundamental limitations of traditional consensus mechanisms, proving two impossibility results: (1) in partially synchronous networks, no quorum-based protocol can achieve SMR when rational and Byzantine validators collectively exceed $1/3$ of the participants; and (2) even under synchronous network assumptions, SMR remains unattainable if this coalition comprises more than $2/3$ of the validator set. Assuming a synchrony bound $Δ$, we show how to extend any quorum-based SMR protocol to tolerate up to $1/3$ Byzantine and $1/3$ rational validators by modifying only its finalization rule. Our approach enforces a necessary bound on the total transaction volume finalized within any time window $Δ$ and introduces the \emph{strongest chain rule}, which enables efficient finalization of transactions when a supermajority of honest participants provably supports execution. Empirical analysis of Ethereum and Cosmos demonstrates validator participation exceeding the required $5/6$ threshold in over $99%$ of blocks, supporting the practicality of our design. Finally, we present a recovery mechanism that restores safety and liveness after consistency violations, even with up to $5/9$ Byzantine stake and $1/9$ rational stake, guaranteeing full reimbursement of provable client losses.
title CoBRA: A Universal Strategyproof Confirmation Protocol for Quorum-based Proof-of-Stake Blockchains
topic Cryptography and Security
Distributed, Parallel, and Cluster Computing
url https://arxiv.org/abs/2503.16783