Heterogeneity - and homophily - induced vulnerability of a P2P network formation model: the IOTA auto-peering protocol

IOTA's auto-peering algorithm builds peer-to-peer connections based on the ‘Mana’ endowment, but this reputation-based approach may contain critical vulnerabilities. This research interprets IOTA's auto-peering algorithm as a random network formation model and employs network metrics to identify cost-efficient attack strategies. 

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The analysis reveals how attackers can eclipse significant portions of the IOTA network, providing detailed estimates of attack costs and potential damage whilst characterising the unique properties of IOTA's homophile random networks.

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