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Bitcoin is currently subject to a significant pay-for-speed trade-off. This is caused by lengthy and highly variable transaction confirmation times, especially during times of congestion. Users can reduce their transaction confirmation…

Probability · Mathematics 2024-02-28 Rowel Gündlach , Ivo V. Stoepker , Stella Kapodistria , Jacques A. C. Resing

In Bitcoin system, transactions are prioritized according to transaction fees. Transactions without fees are given low priority and likely to wait for confirmation. Because the demand of micro payment in Bitcoin is expected to increase due…

Cryptography and Security · Computer Science 2020-03-10 Shoji Kasahara , Jun Kawahara

Bitcoin has become the leading cryptocurrency system, but the limit on its transaction processing capacity has resulted in increased transaction fees and delayed transaction confirmation. As such, it is pertinent to understand and probably…

Cryptography and Security · Computer Science 2021-06-21 Befekadu G. Gebraselase , Bjarne E. Helvik , Yuming Jiang

Bitcoin transaction fees will become more important as the block subsidy declines, but fee formation is hard to study with blockchain data alone because the relevant queueing environment is unobserved. We develop and estimate a structural…

Computational Engineering, Finance, and Science · Computer Science 2026-04-21 Daniel Aronoff , Kristian Praizner , Armin Sabouri

Blockchain systems are being used in a wide range of application domains. They can support trusted transactions in time critical applications. In this paper, we study how miners should pick up transactions from a transaction pool so as to…

Performance · Computer Science 2020-11-24 Gholamreza Ramezan , Cyril Leung , Chunyan Miao

In the Bitcoin system, transaction fees serve as an incentive for blockchain confirmations. In general, a transaction with a higher fee is likely to be included in the next block mined, whereas a transaction with a smaller fee or no fee may…

Cryptography and Security · Computer Science 2024-05-27 Limeng Zhang , Rui Zhou , Qing Liu , Chengfei Liu , M. Ali Babar

We study financial transaction confirmation finality in Bitcoin as a function of transaction amount and user risk tolerance. A transaction is recorded in a block on a blockchain. However, a transaction may be revoked due to a fork in the…

Distributed, Parallel, and Cluster Computing · Computer Science 2025-11-20 Ethan Hicks , Joseph Oglio , Mikhail Nesterenko , Gokarna Sharma

Cryptocurrency networks such as Bitcoin have emerged as a distributed alternative to traditional centralized financial transaction networks. However, there are major challenges in scaling up the throughput of such networks. Lightning…

Distributed, Parallel, and Cluster Computing · Computer Science 2021-06-25 Sushil Mahavir Varma , Siva Theja Maguluri

Bitcoin is the first and the most extensive decentralized electronic cryptocurrency system that uses blockchain technology. It uses a peer-to-peer (P2P) network to operate without a central authority and propagate system information such as…

Distributed, Parallel, and Cluster Computing · Computer Science 2022-05-03 Befekadu G. Gebraselase , Bjarne E. Helvik , Yuming Jiang

Blockchain offers a decentralized, immutable, transparent system of records. It offers a peer-to-peer network of nodes with no centralised governing entity making it unhackable and therefore, more secure than the traditional paper-based or…

Cryptography and Security · Computer Science 2019-11-27 Harsh Jot Singh , Abdelhakim Senhaji Hafid

Blockchain is a technology that provides a distributed ledger that stores previous records while maintaining consistency and security. Bitcoin is the first and largest decentralized electronic cryptographic system that uses blockchain…

Cryptography and Security · Computer Science 2021-11-05 Befekadu G. Gebraselase , Bjarne E. Helvik , Yuming Jiang

Blockchain has been considered as an important technique to enable secure management of virtual network functions and network slices. To understand such capabilities of a blockchain, e.g. transaction confirmation time, demands a thorough…

Cryptography and Security · Computer Science 2020-10-22 Befekadu G. Gebraselase , Bjarne E. Helvik , Yuming Jiang

Ethereum clients execute transactions in a sequential order prescribed by the consensus protocol. This is a safe and conservative approach to blockchain transaction processing which forgoes running transactions in parallel even when doing…

Distributed, Parallel, and Cluster Computing · Computer Science 2019-01-31 Nadi Sarrar

We study a random process over graphs inspired by the way payments are executed in the Lightning Network, the main layer-two solution on top of Bitcoin. We first prove almost tight upper and lower bounds on the time it takes for a payment…

Networking and Internet Architecture · Computer Science 2025-12-30 Taki E. M. Abedesselam , Fabio Giacomelli , Francesco Pasquale , Michele Salvi

Bitcoin derives a verifiable temporal order from probabilistic block discovery and cumulative proof-of-work rather than from a trusted global clock. We show that block arrivals exhibit stable exponential behavior across difficulty epochs,…

Information Theory · Computer Science 2026-02-11 Bin Chen , Pan Feng

This paper presents a stochastic model for block arrival times based on the difficulty retargeting rule used in Bitcoin, as well as other proof-of-work blockchains. Unlike some previous work, this paper explicitly models the difficulty…

Cryptography and Security · Computer Science 2018-12-31 Daniel Fullmer , A. S. Morse

Most public blockchain protocols, including the popular Bitcoin and Ethereum blockchains, do not formally specify the order in which miners should select transactions from the pool of pending (or uncommitted) transactions for inclusion in…

Cryptography and Security · Computer Science 2021-10-25 Johnnatan Messias , Mohamed Alzayat , Balakrishnan Chandrasekaran , Krishna P. Gummadi , Patrick Loiseau , Alan Mislove

In this paper, we develop a more general framework of block-structured Markov processes in the queueing study of blockchain systems, which can provide analysis both for the stationary performance measures and for the sojourn times of any…

Cryptography and Security · Computer Science 2019-04-09 Quan-Lin Li , Jing-Yu Ma , Yan-Xia Chang , Fan-Qi Ma , Hai-Bo Yu

The purpose of this work was to perform a network analysis on the rapidly growing bitcoin transaction network. Using a web-socket API, we collected data on all transactions occurring during a six hour window. Sender and receiver addresses…

Social and Information Networks · Computer Science 2022-07-05 Lambert T. Leong

An important aspect of the propagation delay in blockchain networks is the block verification time, which is also responsible for the so-called verifier's dilemma. Models for the block verification time can help to understand and improve…

Cryptography and Security · Computer Science 2022-07-18 Fabian Stiehle , Erik Daniel , Florian Tschorsch
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