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As the core technology behind Bitcoin, Blockchain's decentralized, tamper-proof, and traceable features make it the preferred platform for organizational innovation. In current Bitcoin, block reward is halved every four years, and…

Cryptography and Security · Computer Science 2022-02-22 Xiongfei Zhao , Yain-Whar Si

Transaction fees are a crucial revenue source for miners in public and consortium blockchains. However, while public blockchains have additional revenue streams, transaction fees serve as the primary income for miners in consortium…

Computational Engineering, Finance, and Science · Computer Science 2024-02-08 Xiongfei Zhao , Gerui Zhang , Hou-Wan Long , Yain-Whar Si

The rapid growth of Blockchain and Decentralized Finance (DeFi) has introduced new challenges and vulnerabilities that threaten the integrity and efficiency of the ecosystem. This study identifies critical issues such as Transaction Order…

Cryptography and Security · Computer Science 2025-03-11 Xiongfei Zhao , Hou-Wan Long , Zhengzhe Li , Jiangchuan Liu , Yain-Whar Si

As coin-based rewards dwindle, transaction fees play an important role as mining incentives in Bitcoin. In this paper, we propose a novel mechanism called Efficient Dynamic Transaction Storage (EDTS) for dynamically allocating transactions…

Networking and Internet Architecture · Computer Science 2024-01-18 Xiongfei Zhao , Gerui Zhang , Yain-Whar Si

Financial markets are undergoing an unprecedented transformation. Technological advances have brought major improvements to the operations of financial services. While these advances promote improved accessibility and convenience,…

Trading and Market Microstructure · Quantitative Finance 2023-12-05 Agostino Capponi , Garud Iyengar , Jay Sethuraman

Many classical blockchains are known to have an embarrassingly low transaction throughput, down to Bitcoin's notorious seven transactions per second limit.Various proposals and implementations for increasing throughput emerged in the first…

Cryptography and Security · Computer Science 2023-03-08 Lioba Heimbach , Quentin Kniep , Yann Vonlanthen , Roger Wattenhofer

Technological advancement drives financial innovation, reshaping the traditional finance landscape and redefining user-market interactions. The rise of blockchain and Decentralized Finance (DeFi) underscores this intertwined evolution of…

Computational Finance · Quantitative Finance 2024-11-27 Xihan Xiong , Zhipeng Wang , Tianxiang Cui , William Knottenbelt , Michael Huth

Blockchain systems are challenged by the so-called Trilemma tradeoff: decentralization, scalability and security. Infrastructure and node configuration, choice of the Consensus Protocol and complexity of the application transactions are…

Cryptography and Security · Computer Science 2022-04-27 Georgios Diamantopoulos , Nikos Tziritas , Rami Bahsoon , Georgios Theodoropoulos

Blockchain sharding has emerged as a promising solution to the scalability challenges in traditional blockchain systems by partitioning the network into smaller, manageable subsets called shards. Despite its potential, existing sharding…

Distributed, Parallel, and Cluster Computing · Computer Science 2024-12-19 Ao Liu , Jing Chen , Kun He , Ruiying Du , Jiahua Xu , Cong Wu , Yebo Feng , Teng Li , Jianfeng Ma

We develop a general and practical framework to address the problem of the optimal design of dynamic fee mechanisms for multiple blockchain resources. Our framework allows to compute policies that optimally trade-off between adjusting…

Computer Science and Game Theory · Computer Science 2023-09-25 Davide Crapis , Ciamac C. Moallemi , Shouqiao Wang

Transaction fee plays an important role in determining the priority of transaction processing in public blockchain systems. Owing to the observability of unconfirmed transactions, a strategic user can postpone his transaction broadcasting…

Computer Science and Game Theory · Computer Science 2025-12-29 Qianlan Bai , Yuedong Xu , Zhijian Zhou , Xin Wang

Decentralized Finance (DeFi) is a new financial industry built on blockchain technologies. Decentralized financial services have consequently increased the ability to lend, borrow, and invest in decentralized investment vehicles, allowing…

Portfolio Management · Quantitative Finance 2022-09-27 Hugo Inzirillo , Stanislas de Quenetain

We present a measurement study on compositions of Decentralized Finance protocols, which aim to disrupt traditional finance and offer services on top of distributed ledgers, such as Ethereum. DeFi compositions may impact the development of…

Cryptography and Security · Computer Science 2022-10-03 Stefan Kitzler , Friedhelm Victor , Pietro Saggese , Bernhard Haslhofer

The decentralized and trustless nature of cryptocurrencies and blockchain technology leads to a shift in the digital world. The possibility to execute small programs, called smart contracts, on cryptocurrencies like Ethereum opened doors to…

Cryptography and Security · Computer Science 2021-01-15 Hendrik Amler , Lisa Eckey , Sebastian Faust , Marcel Kaiser , Philipp Sandner , Benjamin Schlosser

Decentralized exchanges (DEXs) are crucial to decentralized finance (DeFi) as they enable trading without intermediaries. However, they face challenges like impermanent loss (IL), where liquidity providers (LPs) see their assets' value…

Computer Science and Game Theory · Computer Science 2026-03-04 Irina Lebedeva , Dmitrii Umnov , Yury Yanovich , Ignat Melnikov , George Ovchinnikov

Decentralized Finance (DeFi) leverages blockchain-enabled smart contracts to deliver automated and trustless financial services without the need for intermediaries. However, the public visibility of financial transactions on the blockchain…

Cryptography and Security · Computer Science 2025-10-20 Huned Materwala , Shraddha M. Naik , Aya Taha , Tala Abdulrahman Abed , Davor Svetinovic

Decentralized Finance (DeFi) is reshaping traditional finance by enabling direct transactions without intermediaries, creating a rich source of open financial data. Layer 2 (L2) solutions are emerging to enhance the scalability and…

General Economics · Economics 2025-08-11 Nir Chemaya , Lin William Cong , Emma Jorgensen , Dingyue Liu , Luyao Zhang

The necessity of blockchain systems to remain decentralised limits current solutions to blockchain governance and dynamic management, forcing a trade-off between control and decentralisation. In light of the above, this work proposes a…

Cryptography and Security · Computer Science 2025-10-10 Georgios Diamantopoulos , Nikos Tziritas , Rami Bahsoon , Georgios Theodoropoulos

As of August 2022, blockchain-based assets boast a combined market capitalisation exceeding one trillion USD, among which the most prominent are the decentralised autonomous organisation (DAO) tokens associated with decentralised finance…

General Economics · Economics 2025-05-08 Teng Andrea Xu , Jiahua Xu , Kristof Lommers

One of the exciting recent developments in decentralized finance (DeFi) has been the development of decentralized cryptocurrency exchanges that can autonomously handle conversion between different cryptocurrencies. Decentralized exchange…

Trading and Market Microstructure · Quantitative Finance 2021-01-11 Bhaskar Krishnamachari , Qi Feng , Eugenio Grippo
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