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Satoshi Dice: history, principles, and effects on the Bitcoin network

DegreeBachelor
StatusActive
Supervisor(s)Svetlana Abramova, MSc
ProjectBITCRIME

Description

One of the largest stress tests on the Bitcoin system to date has been the emergence of so-called dice games with the most popular gambling game Satoshi Dice. A player sends a handpicked amount of bitcoin to an address controlled by Satoshi Dice. The service instantly creates a new transaction to the incoming transaction’s source address and returns the prize, if the dice roll is smaller than the player’s chosen number, or a very small output value to signal a loss.

The goal of this thesis is to study the principles and mechanisms of Satoshi Dice in detail. It should be examined how the emergence of this service influenced the total number and volume of Bitcoin transactions by analyzing and evaluating the blockchain.

References

  • Böhme, R., Christin, N., Edelman, B., and Moore, T. Bitcoin: Economics, Technology, and Governance. Journal of Economic Perspectives, 29, 2 (2015), 213–238. [Publisher]
  • Möser, M. and Böhme, R. Trends, Tips, Tolls: A Longitudinal Study of Bitcoin Transaction Fees. In M. Brenner, N. Christin, B. Johnson and K. Rohloff, eds., Financial Cryptography and Data Security, 2nd Workshop on BITCOIN Research. Lecture Notes in Computer Science 8976, Springer, Berlin Heidelberg, 2015, pp. 19–33. [PDF] [Publisher]