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This paper investigates how pricing schemes can achieve efficient allocations in blockchain systems featuring multiple transaction queues under a global capacity constraint. I model a capacity-constrained blockchain where users submit…

General Economics · Economics 2025-02-26 Abdoulaye Ndiaye

Decentralized exchanges, such as those employing constant product market makers (CPMMs) like Uniswap V2, play a crucial role in the blockchain ecosystem by enabling peer-to-peer token swaps without intermediaries. Despite the increasing…

Computational Finance · Quantitative Finance 2025-04-23 Yu Zhang , Yafei Li , Claudio Tessone

Blockchain technology is affected by massive limitations in scalability with consequent repercussions on performance. This discussion aims at analyzing the state of the art of current available Layer II solutions to overcome these…

Distributed, Parallel, and Cluster Computing · Computer Science 2021-07-26 Cosimo Sguanci , Roberto Spatafora , Andrea Mario Vergani

The emergence of decentralized finance has transformed asset trading on the blockchain, making traditional financial instruments more accessible while also introducing a series of exploitative economic practices known as Maximal Extractable…

Cryptography and Security · Computer Science 2025-09-08 Christof Ferreira Torres , Albin Mamuti , Ben Weintraub , Cristina Nita-Rotaru , Shweta Shinde

The blockchain technology is believed by many to be a game changer in many application domains, especially financial applications. While the first generation of blockchain technology (i.e., Blockchain 1.0) is almost exclusively used for…

Cryptography and Security · Computer Science 2019-08-14 Huashan Chen , Marcus Pendleton , Laurent Njilla , Shouhuai Xu

Layer 2 rollups are rapidly absorbing DeFi activity, securing over $40 billion and accounting for nearly half of Ethereum's DEX volume by Q1 2025, yet their MEV dynamics remain understudied. We address this gap by defining and quantifying…

Computational Engineering, Finance, and Science · Computer Science 2025-08-07 Ozan Solmaz , Lioba Heimbach , Yann Vonlanthen , Roger Wattenhofer

Smart contracts are full-fledged programs that run on blockchains (e.g., Ethereum, one of the most popular blockchains). In Ethereum, gas (in Ether, a cryptographic currency like Bitcoin) is the execution fee compensating the computing…

Software Engineering · Computer Science 2020-11-05 Ting Chen , Xiaoqi Li , Xiapu Luo , Xiaosong Zhang

Gasper, the consensus protocol currently employed by Ethereum, typically requires 64 to 95 slots -- the units of time during which a new chain extending the previous one by one block is proposed and voted -- to finalize. This means that…

Distributed, Parallel, and Cluster Computing · Computer Science 2024-11-04 Francesco D'Amato , Roberto Saltini , Thanh-Hai Tran , Luca Zanolini

The gas fee, paid for inclusion in the blockchain, is analyzed in two parts. First, we consider how effort in terms of resources required to process and store a transaction turns into a gas limit, which, through a fee, comprised of the base…

Portfolio Management · Quantitative Finance 2024-11-07 Bernhard K Meister , Henry CW Price

Participation in permissionless blockchains results in competition over system resources, which needs to be controlled with fees. Ethereum's current fee mechanism is implemented via a first-price auction that results in unpredictable fees…

Computer Science and Game Theory · Computer Science 2021-06-08 Stefanos Leonardos , Barnabé Monnot , Daniël Reijsbergen , Stratis Skoulakis , Georgios Piliouras

Several recent proposals implicitly or explicitly suggest making use of randomized transaction ordering within a block to mitigate centralization effects and to improve fairness in the Ethereum ecosystem. However, transactions and blocks…

Distributed, Parallel, and Cluster Computing · Computer Science 2025-10-01 Jan Droll

With the rapid growth of Electric Vehicle (EV) technology, EVs are destined to shape the future of transportation. The large number of EVs facilitates the development of the emerging vehicle-to-grid (V2G) technology, which realizes…

Cryptography and Security · Computer Science 2025-08-27 Ahmed Mounsf Rafik Bendada , Yacine Ghamri-Doudane

This paper examines how various categories of Ethereum stakers respond to changes in the consensus issuance schedule, and the potential impact of such changes on the composition of the staking market. To this end, we have develop and…

General Economics · Economics 2025-07-22 Juan Beccuti , Thunj Chantramonklasri , Matthias Hafner , Nicolas Oderbolz

Uniswap is a Constant Product Market Maker built around liquidity pools, where pairs of tokens are exchanged subject to a fee that is proportional to the size of transactions. At the time of writing, there exist more than 6,000 pools…

Trading and Market Microstructure · Quantitative Finance 2023-02-01 Deborah Miori , Mihai Cucuringu

Most permissionless blockchain networks run on peer-to-peer (P2P) networks, which offer flexibility and decentralization at the expense of performance (e.g., network latency). Historically, this tradeoff has not been a bottleneck for most…

Cryptography and Security · Computer Science 2023-09-13 Weizhao Tang , Lucianna Kiffer , Giulia Fanti , Ari Juels

The Ethereum blockchain network enables transaction processing and smart-contract execution through levies of transaction fees, commonly known as gas fees. This framework mediates economic participation via a market-based mechanism for gas…

General Finance · Quantitative Finance 2025-01-10 Lennart Ante , Aman Saggu

The peer-to-peer (P2P) network of blockchain used to transport its transactions and blocks has a high impact on the efficiency and security of the system. The P2P network topologies of popular blockchains such as Bitcoin and Ethereum,…

Networking and Internet Architecture · Computer Science 2021-03-30 Taotao Wang , Chonghe Zhao , Qing Yang , Shengli Zhang , Soung Chang Liew

The scalability limitations of public blockchains have hindered their widespread adoption in real-world applications. While the Ethereum community is pushing forward in zk-rollup (zero-knowledge rollup) solutions, such as introducing the…

Cryptography and Security · Computer Science 2024-03-19 Chengpeng Huang , Rui Song , Shang Gao , Yu Guo , Bin Xiao

As decentralized applications on permissionless blockchains are prevalent, more and more latency-sensitive usage scenarios emerged, where the lower the latency of sending and receiving messages, the better the chance of earning revenue. To…

Distributed, Parallel, and Cluster Computing · Computer Science 2024-12-12 Ke Wang , Qiao Wang , Yue Li , Zhi Guan , Zhong Chen

Achieving the equilibrium between scalability, sustainability, and security while keeping decentralization has prevailed as the target solution for decentralized blockchain applications over the last years. Several approaches have been…

Cryptography and Security · Computer Science 2022-09-23 Mikel Cortes-Goicoechea , Leonardo Bautista-Gomez