This project proposal addresses technical challenges in the Network and Consensus layers of permissionless blockchain networks such as Bitcoin, Ethereum, and Algorand. These networks are conceptualized as three-layered systems, comprising the Network Layer (a peer-to-peer network for information exchange), the Consensus Layer (where transactions are grouped into blocks and added to the blockchain), and the Smart Contract Layer (where transactions execute computer code). The proposal focuses on two main areas: developing incentive mechanisms to reduce network latencies and studying the practical feasibility and solutions for certain attacks which exploit high network latencies. Firstly, it seeks to design incentive and reward mechanisms to encourage peers to promptly forward data, ensuring low latencies and maintaining decentralization. High latencies can cause security and performance issues, such as blockchain forks in Bitcoin and consensus failures in Algorand. By proposing a reward system that promotes quick data forwarding and is resistant to Sybil attacks, the project aims to enhance network performance and fairness. Simulations and practical implementations of these mechanisms will be conducted to evaluate their effectiveness and scalability. Secondly, the proposal examines the practicality of Reorg and Balance attacks on Ethereum’s consensus protocol, LMD Ghost, which exploits network latencies. These attacks involve manipulating vote visibility to create forks and delay finalizing blocks. The project will study these attacks’ real-world feasibility and develop solutions, such as randomized deadlines and time-varying vote weights, to counter them with minimal protocol changes. The effectiveness of these solutions will be evaluated theoretically and through simulations.