National Science Foundation Awards $450k for Cryptocurrency Incentive Study

A Princeton University researcher has received federal funding to study mechanism incentives and applications to cryptocurrency.

Jul 6, 2017 at 4:30 p.m. UTC
Updated Sep 11, 2021 at 1:30 p.m. UTC

A Princeton University researcher has received more than $400,000 in federal funding to study mechanism incentives and their applications to cryptocurrencies like bitcoin.

The study project, "Duality-based tools for simple vs. optimal mechanism design and applications to cryptocurrency", is being led by Seth Weinberg, an assistant professor of computer science at Princeton. The grant, worth $450,000, was awarded on 28th June by the National Science Foundation. The project is set to begin in September and will last until August 31, 2020, according to the NSF.

As the organization's website explains:

"A secondary focus of this project is to apply these theoretical foundations to resolve cryptocurrency incentive issues arising within Bitcoin, an emerging cryptocurrency. While bitcoin has remained largely immune to traditional security breaches, numerous incentive issues have been discovered which could undermine its future security if not properly addressed."

Though cryptocurrencies constitute only part of the research study – its primary focus is the design of algorithmic mechanisms and the theoretical incentives at play – its the latest instance of a project that involves the tech receiving federal backing.

In mid-2015, the NSF awarded $3m to the Initiative for Cryptocurrency and Contracts (IC3), a research effort involving academics from Cornell, the University of Maryland and the University of California Berkeley. The NSF has also moved to back cybersecurity-related research that involves blockchain.

Image via Shutterstock

The Festival for the Decentralized World
Thursday - Sunday, June 9-12, 2022
Austin, Texas
Save a Seat Now

DISCLOSURE

Please note that our privacy policy, terms of use, cookies, and do not sell my personal information has been updated.

The leader in news and information on cryptocurrency, digital assets and the future of money, CoinDesk is a media outlet that strives for the highest journalistic standards and abides by a strict set of editorial policies. CoinDesk is an independent operating subsidiary of Digital Currency Group, which invests in cryptocurrencies and blockchain startups. As part of their compensation, certain CoinDesk employees, including editorial employees, may receive exposure to DCG equity in the form of stock appreciation rights, which vest over a multi-year period. CoinDesk journalists are not allowed to purchase stock outright in DCG.

Trending

1
S&P Global Ratings Forms DeFi Group to Build Out Crypto Framework

The credit rating giant named Charles "Chuck" Mounts as chief DeFi officer to lead the unit.

The credit rating giant named Charles "Chuck" Mounts as chief DeFi officer to lead the unit.

2
What Happened to the Luna Foundation Guard’s Bitcoin Billions?

The community is getting louder about wanting answers to this lingering question.

The community is getting louder about wanting answers to this lingering question.

3
Stronghold Digital Beats Q1 Revenue Estimates, but Misses on Earnings

Shares of the bitcoin miner that uses waste coal for energy fell slightly in after-hours trading.

Shares of the bitcoin miner that uses waste coal for energy fell slightly in after-hours trading.

4
What Is a Consensus Mechanism?

Cryptocurrency and blockchain technology rely on consensus mechanisms to function and be trusted by users.

Cryptocurrency and blockchain technology rely on consensus mechanisms to function and be trusted by users.