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Related papers: Towards a Functional Fee Market for Cryptocurrenci…

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Bitcoin, as one of the most popular cryptocurrency, is recently attracting much attention of investors. Bitcoin price prediction task is consequently a rising academic topic for providing valuable insights and suggestions. Existing bitcoin…

Statistical Finance · Quantitative Finance 2020-08-25 Xiao Li , Weili Wu

Payment channels networks drastically increase the throughput and hence scalability of blockchains by performing transactions \emph{off-chain}. In an off-chain payment, parties deposit coins in a channel and then perform transactions…

Distributed, Parallel, and Cluster Computing · Computer Science 2020-12-21 Yuup van Engelshoven , Stefanie Roos

The cryptocurrency market is amongst the fastest-growing of all the financial markets in the world. Unlike traditional markets, such as equities, foreign exchange and commodities, cryptocurrency market is considered to have larger…

General Finance · Quantitative Finance 2020-04-06 Fan Fang , Waichung Chung , Carmine Ventre , Michail Basios , Leslie Kanthan , Lingbo Li , Fan Wu

Cryptocurrencies and blockchain networks have attracted tremendous attention from their volatile price movements and the promise of decentralization. However, most projects run on business narratives with no way to test and verify their…

Multiagent Systems · Computer Science 2019-07-02 Zixuan Zhang

Second-price auctions with deposits are frequently used in blockchain environments. An auction takes place on-chain: bidders deposit an amount that fully covers their bid (but possibly exceeds it) in a smart contract. The deposit is used as…

Computer Science and Game Theory · Computer Science 2022-07-19 Jan Christoph Schlegel , Akaki Mamageishvili

The popularity of cryptocurrencies has grown significantly in recent years, and they have become an important asset for internet trading. One of the main drawbacks of cryptocurrencies is the high volatility and fluctuation in value. The…

Cryptography and Security · Computer Science 2023-03-06 Wantall Newby , Nickuk Nishikawa

We initiate the study of transaction fee mechanism design for blockchain protocols in which multiple block producers contribute to the production of each block. Our contributions include: - We propose an extensive-form (multi-stage) game…

Computer Science and Game Theory · Computer Science 2025-05-27 Pranav Garimidi , Lioba Heimbach , Tim Roughgarden

Blockchain's economic value lies in enabling financial and economic transactions without relying on trusted, centralized intermediaries. In practice, however, transactions pass through a fragmented chain of intermediaries before being…

General Economics · Economics 2026-05-05 Andrea Canidio , Vabuk Pahari

We consider the execution of smart contracts on Bitcoin. There, every contract step corresponds to appending to the blockchain a new transaction that spends the output representing the old contract state, creating a new one for the updated…

Cryptography and Security · Computer Science 2025-06-05 Dario Maddaloni , Riccardo Marchesin , Roberto Zunino

Constant Function Market Makers (CFMMs) are a family of automated market makers that enable censorship-resistant decentralized exchange on public blockchains. Arbitrage trades have been shown to align the prices reported by CFMMs with those…

Mathematical Finance · Quantitative Finance 2021-04-02 Alex Evans , Guillermo Angeris , Tarun Chitra

Blockchain and its application on cryptocurrency transactions have gathered a lot of attention and popularity since the birth of the pioneer Bitcoin in 2009. More than 1500 cryptocurrencies are currently circulated in the market. The…

Computers and Society · Computer Science 2019-01-21 Gourang Aggarwal , Vimal Patel , Gaurav Varshney , Kimberly Oostman

In 2021 Ethereum adjusted the transaction pricing mechanism by implementing EIP-1559, which introduces the base fee - a network fee that is burned and dynamically adjusts to the network demand. The authors of the Ethereum Improvement…

Computer Science and Game Theory · Computer Science 2023-08-09 Sarah Azouvi , Guy Goren , Lioba Heimbach , Alexander Hicks

Price feeds of securities is a critical component for many financial services, allowing for collateral liquidation, margin trading, derivative pricing and more. With the advent of blockchain technology, value in reporting accurate prices…

Computational Finance · Quantitative Finance 2023-05-23 Orhan Koc

Traditional blockchain design gives miners or validators full control over transaction ordering, i.e., they can freely choose which transactions to include or exclude, as well as in which order. While not an issue initially, the emergence…

Distributed, Parallel, and Cluster Computing · Computer Science 2023-12-19 Andrei Constantinescu , Diana Ghinea , Lioba Heimbach , Zilin Wang , Roger Wattenhofer

We demonstrate market inefficiency in cryptoasset markets. Our approach examines investments that share a dominant risk factor but differ in their exposure to a secondary risk. We derive equilibrium restrictions that must hold regardless of…

Trading and Market Microstructure · Quantitative Finance 2026-03-13 Joel Hasbrouck , Julian Ma , Fahad Saleh , Caspar Schwarz-Schilling

Off-chain transaction channels represent one of the leading techniques to scale the transaction throughput in cryptocurrencies such as Bitcoin. They allow multiple agents to route payments through one another. So far, the topology and…

Computer Science and Game Theory · Computer Science 2020-07-28 Yotam Sali , Aviv Zohar

Cryptocurrencies redefined how money can be stored and transferred among users. However, independent of the amount being sent, public blockchain-based cryptocurrencies suffer from high transaction waiting times and fees. These drawbacks…

Cryptography and Security · Computer Science 2021-02-05 Enes Erdin , Suat Mercan , Kemal Akkaya

Blockchains have block-size limits to ensure the entire cluster can keep up with the tip of the chain. These block-size limits are usually single-dimensional, but richer multidimensional constraints allow for greater throughput. The…

Computer Science and Game Theory · Computer Science 2025-04-23 Nir Lavee , Noam Nisan , Mallesh Pai , Max Resnick

Motivated by the great success and adoption of Bitcoin, a number of cryptocurrencies such as Litecoin, Dogecoin, and Ethereum are becoming increasingly popular. Although existing blockchain-based cryptocurrency schemes can ensure reasonable…

Cryptography and Security · Computer Science 2016-12-02 Jian Liu , Wenting Li , Ghassan O. Karame , N. Asokan

As cryptocurrencies gain popularity and credibility, marketplaces for cryptocurrencies are growing in importance. Understanding the dynamics of these markets can help to assess how viable the cryptocurrnency ecosystem is and how design…

Computers and Society · Computer Science 2018-04-25 Peter M Krafft , Nicolás Della Penna , Alex Pentland
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