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Ethereum's Gas mechanism attempts to set transaction fees in accordance with the computational cost of transaction execution: a cost borne by default by every node on the network to ensure correct smart contract execution. Gas encourages…

Cryptography and Security · Computer Science 2019-05-03 Renlord Yang , Toby Murray , Paul Rimba , Udaya Parampalli

New technologies, such as blockchain, are designed to address various system weaknesses, particularly those related to security. Blockchain can enhance numerous aspects of traditional banking systems by transforming them into digital,…

Cryptography and Security · Computer Science 2026-03-24 Shkelqim Sherifi

Uncontrolled growth of blockchain state can adversely affect client performance, decentralization and security. Previous attempts to introduce duration-based state storage pricing or 'storage rent' in Ethereum have stalled, partly because…

Distributed, Parallel, and Cluster Computing · Computer Science 2022-10-26 Sergio Demian Lerner , Federico Jinich , Diego Masini , Shreemoy Mishra

When developing peer-to-peer applications on Distributed Ledger Technology (DLT), a crucial decision is the selection of a suitable DLT design (e.g., Ethereum) because it is hard to change the underlying DLT design post hoc. To facilitate…

Cryptography and Security · Computer Science 2023-06-28 Niclas Kannengießer , Sebastian Lins , Tobias Dehling , Ali Sunyaev

Payment channel networks like Bitcoin's Lightning network are an auspicious approach for realizing high transaction throughput and almost-instant confirmations in blockchain networks. However, the ability to successfully make payments in…

Distributed, Parallel, and Cluster Computing · Computer Science 2019-11-27 Oguzhan Ersoy , Stefanie Roos , Zekeriya Erkin

Scalability is one of the main roadblocks to business adoption of blockchain systems. Despite recent intensive research on using sharding techniques to enhance the scalability of blockchain systems, existing solutions do not efficiently…

Databases · Computer Science 2020-02-18 Mohammad Javad Amiri , Divyakant Agrawal , Amr El Abbadi

Given the low throughput of blockchains like Bitcoin and Ethereum, scalability - the ability to process an increasing number of transactions - has become a central focus of blockchain research. One promising approach is the parallelization…

Computer Science and Game Theory · Computer Science 2025-08-11 Bahar Acilan , Andrei Constantinescu , Lioba Heimbach , Roger Wattenhofer

A payment channel network is a blockchain-based overlay mechanism that allows parties to transact more efficiently than directly using the blockchain. These networks are composed of payment channels that carry transactions between pairs of…

Networking and Internet Architecture · Computer Science 2026-03-10 Suryanarayana Sankagiri , Bruce Hajek

Ethereum Improvement Proposal (EIP) 1559 was recently implemented to transform Ethereum's transaction fee market. EIP-1559 utilizes an algorithmic update rule with a constant learning rate to estimate a base fee. The base fee reflects…

Computer Science and Game Theory · Computer Science 2022-04-20 Daniël Reijsbergen , Shyam Sridhar , Barnabé Monnot , Stefanos Leonardos , Stratis Skoulakis , Georgios Piliouras

As the killer application of blockchain technology, blockchain-based payments have attracted extensive attention ranging from hobbyists to corporates to regulatory bodies. Blockchain facilitates fast, secure, and cross-border payments…

Software Engineering · Computer Science 2021-08-19 Qinghua Lu , Xiwei Xu , H. M. N. Dilum Bandara , Shiping Chen , Liming Zhu

Ethereum has emerged as a dynamic platform for exchanging cryptocurrency tokens. While token crowdsales cannot simultaneously guarantee buyers both certainty of valuation and certainty of participation, we show that if each token buyer…

Theoretical Economics · Economics 2019-08-14 Jason Teutsch , Vitalik Buterin , Christopher Brown

Ethereum is a distributed blockchain that can execute smart contracts, which inter-communicate and perform transactions automatically. The execution of smart contracts is paid in the form of gas, which is a monetary unit used in the…

Distributed, Parallel, and Cluster Computing · Computer Science 2019-10-25 Kirk Baird , Seongho Jeong , Yeonsoo Kim , Bernd Burgstaller , Bernhard Scholz

Maximal Extractable Value (MEV) represents a pivotal challenge within the Ethereum ecosystem; it impacts the fairness, security, and efficiency of both Layer 1 (L1) and Layer 2 (L2) networks. MEV arises when miners or validators manipulate…

Cryptography and Security · Computer Science 2025-01-28 Zeinab Alipanahloo , Abdelhakim Senhaji Hafid , Kaiwen Zhang

Payment channels are the most prominent solution to the blockchain scalability problem. We introduce the problem of network design with fees for payment channels from the perspective of a Payment Service Provider (PSP). Given a set of…

Data Structures and Algorithms · Computer Science 2018-10-18 Georgia Avarikioti , Gerrit Janssen , Yuyi Wang , Roger Wattenhofer

Possible manipulation of user transactions by miners in a permissionless blockchain systems is a growing concern. This problem is a pervasive and systemic issue, known as Miner Extractable Value (MEV), incurs highs costs on users of…

Cryptography and Security · Computer Science 2023-07-06 Bulat Nasrulin , Georgy Ishmaev , Jérémie Decouchant , Johan Pouwelse

Two MEV builders now produce nearly 80\% of Ethereum blocks. Block builders have the ability to reorder transactions on the blockchain in a way that can be harmful to participants. We estimate they would pay in the aggregate nearly \$14…

Trading and Market Microstructure · Quantitative Finance 2026-05-20 Bruce Mizrach , Nathaniel Yoshida

Bitcoin is the first successful decentralized global digital cash system. Its mining process requires intense computational resources, therefore its usefulness remains a disputable topic. We aim to solve three problems with Bitcoin and…

Cryptography and Security · Computer Science 2016-08-25 Alexander Chepurnoy , Mario Larangeira , Alexander Ojiganov

Liquidity providers (LPs) on decentralized exchanges (DEXs) can protect themselves from adverse selection risk by updating their positions more frequently. However, repositioning is costly, because LPs have to pay gas fees for each update.…

Trading and Market Microstructure · Quantitative Finance 2024-03-20 Basile Caparros , Amit Chaudhary , Olga Klein

In recent years, prominent blockchain systems such as Bitcoin and Ethereum have experienced explosive growth in transaction volume, leading to frequent surges in demand for limited block space and causing transaction fees to fluctuate by…

Computer Science and Game Theory · Computer Science 2023-10-31 Matheus V. X. Ferreira , Daniel J. Moroz , David C. Parkes , Mitchell Stern

The automotive industry has seen an increased need for connectivity, both as a result of the advent of autonomous driving and the rise of connected cars and truck fleets. This shift has led to issues such as trusted coordination and a wider…

Cryptography and Security · Computer Science 2019-07-08 Parth Singhal , Siddharth Masih