Keynotes
The Economics of Transparency and Centralization in Blockchains: From Mining Cartels to Market Crises
Abstract
In this talk, I will present our recent works studying the effects of centralization and transparency across multiple layers of blockchain-based systems. Centralization in blockchains can manifest differently across consensus, protocol, and application layers, challenging the simplistic view of decentralized versus centralized systems [1-2]. I will start by presenting our mathematical model of centralization effects in proof-of-work mining, which quantifies how hash rate concentration and block propagation dynamics affect fork rates and resource efficiency in distributed ledgers [3]. I will also discuss our method for the statistical detection of selfish mining in several proof-of-work blockchains, which offered the first empirical evidence of coordinated strategic behaviour in mining [4]. I will then move to the application layer to present our study on DEX liquidity dynamics during the Silicon Valley Bank collapse, where we focus on the counterintuitive effects of transparency during market stress [5]. We show how USDC’s frequent disclosures led to swift market reactions and reduced dominance, while USDT’s opacity provided relative stability through delayed information propagation. Our empirical analysis builds on a successful stream of financial economics literature about how transparency regimes affect market dynamics. Our work encourages a more critical assessment of the economics of blockchain-based systems. I will conclude by discussing my views on where we should look in the coming years to design appropriate risk management practices for users, developers and regulators, particularly in the context of the growing DeFi-TradFi integration.
References
[1] Campajola, C., Cristodaro, R., De Collibus, F. M., Yan, T., Vallarano, N., & Tessone, C. J. (2022). The evolution of centralisation on cryptocurrency platforms. arXiv preprint arXiv:2206.05081.
[2] De Collibus, F. M., Campajola, C., & Tessone, C. J. (2025). The microvelocity of money in Ethereum. EPJ Data Science, 14(1), 11.
[3] Barucca, P., Campajola, C., & Xu, J. (2024). How the interplay between power concentration, competition, and propagation affects the resource efficiency of distributed ledgers. arXiv preprint arXiv:2411.10249.
[4] Li, S. N., Campajola, C., & Tessone, C. J. (2024). Statistical detection of selfish mining in proof-of-work blockchain systems. Scientific Reports, 14(1), 6251.
[5] Cruz, W. H., Xu, J., Tasca, P., & Campajola, C. (2024). No Questions Asked: Effects of Transparency on Stablecoin Liquidity During the Collapse of Silicon Valley Bank. arXiv preprint arXiv:2407.11716.
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Carlo Campajola
Lecturer in Artificial Intelligence and Financial Analytics at University College London
Andrea Vitaletti
Associate Professor of Computer Science at Sapienza University of Rome
Beyond the chain: synergies between on-chain and off-chain worlds
Andrea Vitaletti, Ph.D., is an Associate Professor of Computer Science at Sapienza University of Rome. His research focuses on designing systems for collecting, analyzing, and managing data in distributed networks, with a strong emphasis on decentralized governance. His work spans the Internet of Things (IoT), Distributed Ledger Technologies (DLT), Federated Machine Learning, and Verifiable Computation, areas in which he also teaches at Sapienza, alongside courses in Digital Entrepreneurship. Prof. Vitaletti is particularly interested in the trade-offs between data utility and privacy, as well as the balance between individual and collective interests in digital ecosystems. He has contributed to several European research projects, including serving as principal investigator and coordinator of the FET Open project PLEASED. In addition to his academic work, he has successfully transferred research to market through the co-founding of two spin-offs: WLAB (acquired in 2016) and WSENSE (which he left in 2019). More on https://andreavitaletti.github.io/
Abstract
As blockchain technology matures, the divide between on-chain and off-chain systems is evolving into a dynamic space of collaboration and innovation. The keynote explores the growing synergies between decentralized, trustless environments and the rich, data-intensive off-chain world. We will examine how hybrid architectures are enabling new use cases by bridging smart contracts with real-world data and processes. Topics include oracle networks and succinct zero-knowledge proofs (zk-proofs) for off-chain computation. While these technologies hold great promise real-world adoption, particularly of zk systems, still faces challenges in performance, tooling, and developer accessibility. By highlighting practical examples and emerging patterns, this talk offers a forward-looking perspective on how combining on-chain integrity, transparency, and incentive mechanisms with off-chain flexibility and computational power can reshape digital trust and enable scalable, real-world blockchain applications.
