Template-Type: ReDIF-Paper 1.0
Author-Name: Rodney Garratt
Author-X-Name-First: Rodney
Author-X-Name-Last: Garratt
Author-Name: Cyril Monnet
Author-X-Name-First: Cyril
Author-X-Name-Last: Monnet
Title: An impossibility theorem on truth-telling in fully decentralised systems
Abstract: We show that truthful reporting about the realization of a publicly observed event cannot be implemented as a unique equilibrium in a completely decentralized environment. Our work provides a theoretical underpinning of the need for oracles and the related "oracle problem".
Creation-Date: 2023-08
File-URL: https://www.bis.org/publ/work1117.pdf
File-Format: Application/pdf
File-Function: Full PDF document
File-URL: https://www.bis.org/publ/work1117.htm
File-Format: text/html
Number: 1117
Keywords: decentralized systems, smart contracts, truth-telling, oracle problem
Classification-JEL: C72, D72, D86, O33
Handle: RePEc:bis:biswps:1117