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Related papers: Blockchain Price vs. Quantity Controls

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As a trusted middleware connecting the blockchain and the real world, the blockchain oracle can obtain trusted real-time price information for financial applications such as payment and settlement, and asset valuation on the blockchain.…

Cryptography and Security · Computer Science 2024-10-17 Youquan Xian , Xueying Zeng , Hao Wu , Danping Yang , Peng Wang , Peng Liu

Cryptocurrencies, especially Bitcoin (BTC), which comprise a new digital asset class, have drawn extraordinary worldwide attention. The characteristics of the cryptocurrency/BTC include a high level of speculation, extreme volatility and…

Statistical Finance · Quantitative Finance 2020-09-24 Ai Jun Hou , Weining Wang , Cathy Y. H. Chen , Wolfgang Karl Härdle

We study Nash-dynamics in the context of blockchain protocols. We introduce a formal model, within which one can assess whether the Nash dynamics can lead utility-maximizing participants to defect from the "honest" protocol operation,…

Cryptography and Security · Computer Science 2022-03-24 Dimitris Karakostas , Aggelos Kiayias , Thomas Zacharias

Public blockchains implement a fee mechanism to allocate scarce computational resources across competing transactions. Most existing fee market designs utilize a joint, fungible unit of account (e.g., gas in Ethereum) to price otherwise…

Optimization and Control · Mathematics 2022-11-04 Theo Diamandis , Alex Evans , Tarun Chitra , Guillermo Angeris

With the rapid evolution of technological, economic, and regulatory landscapes, contemporary blockchain platforms are all but certain to undergo major changes. Therefore, the applications that rely on them will eventually need to migrate…

Distributed, Parallel, and Cluster Computing · Computer Science 2021-05-27 HMN Dilum Bandara , Xiwei Xu , Ingo Weber

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

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

Blockchain is a decentralized system that allows transaction transmission and storage according to the roles of the Consensus algorithm and Smart contracts. Non-fungible tokens (NFTs) consolidate the best characteristics of blockchain…

Cryptography and Security · Computer Science 2022-09-07 Subhash Shankar Pandey , Tadasha Dash , Prasanta K. Panigrahi , Ahmed Farouk

Blockchain technology is facing critical issues of scalability, efficiency and sustainability. These problems are necessary to solve if blockchain is to become a technology that can be used responsibly. Useful quantum computers could…

Cryptography and Security · Computer Science 2022-01-28 Marcus Edwards , Atefeh Mashatan , Shohini Ghose

Transaction fee markets are essential components of blockchain economies, as they resolve the inherent scarcity in the number of transactions that can be added to each block. In early blockchain protocols, this scarcity was resolved through…

Computer Science and Game Theory · Computer Science 2022-12-16 Stefanos Leonardos , Daniël Reijsbergen , Barnabé Monnot , Georgios Piliouras

The incentive-compatibility properties of blockchain transaction fee mechanisms have been investigated with *passive* block producers that are motivated purely by the net rewards earned at the consensus layer. This paper introduces a model…

Computer Science and Game Theory · Computer Science 2023-10-04 Maryam Bahrani , Pranav Garimidi , Tim Roughgarden

In recent years, blockchain has grown in popularity due to its singular attributes, enabling the development of new innovative decentralized applications. But when companies consider leveraging blockchain for their applications, the…

Cryptography and Security · Computer Science 2021-01-25 Nicolas Six

We develop a model of coordination and allocation of decentralized multi-sided markets, in which our theoretical analysis is promisingly optimizing the decentralized transaction packaging process at high-throughput blockchains or Web 3.0…

General Economics · Economics 2023-01-27 Yuxuan Lu , Qian Qi , Xi Chen

We describe a plausible probabilistic model for a blockchain queueing environment in which rational, profit-maximising schedulers impose adversarial disciplines on incoming messages containing a payload that encodes a state transition in a…

Probability · Mathematics 2023-02-17 Andrew W. Macpherson

Blockchain is a decentralized transaction and data management solution, the technological leap behind the success of Bitcoin and other cryptocurrencies. As the variety of existing blockchains and distributed ledgers continues to increase,…

Cryptography and Security · Computer Science 2020-07-27 Martin Garriga , Stefano Dalla Palma , Maximiliano Arias , Alan De Renzis , Remo Pareschi , Damian Andrew Tamburri

Blockchain is a type of decentralized distributed database. Unlike traditional relational database management systems, it does not require management or maintenance by a third party. All data management and update processes are open and…

Cryptography and Security · Computer Science 2025-05-14 Jiaqi Huang , Yuanzheng Niu , Xiaoqi Li , Zongwei Li

The mining process in blockchain requires solving a proof-of-work puzzle, which is resource expensive to implement in mobile devices due to the high computing power and energy needed. In this paper, we, for the first time, consider edge…

Cryptography and Security · Computer Science 2018-11-20 Zehui Xiong , Shaohan Feng , Wenbo Wang , Dusit Niyato , Ping Wang , Zhu Han

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

In the light of the recent fame of Blockchain technologies, numerous proposals and projects aiming at better practical viability have emerged. However, formally assessing their particularities and benefits has proven to be a difficult task.…

Cryptography and Security · Computer Science 2019-06-13 Antoine Durand , Elyes Ben-Hamida , David Leporini , Gérard Memmi

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