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Despite being under development for over 15 years, transaction throughput remains one of the key challenges confronting blockchains, which typically has a cap of a limited number of transactions per second. A fundamental factor limiting…

Distributed, Parallel, and Cluster Computing · Computer Science 2026-01-16 Evangelos Kolyvas , Alexandros Antonov , Spyros Voulgaris

Research in blockchain systems has mainly focused on improving security and bridging the performance gaps between blockchains and databases. Despite many promising results, we observe a worrying trend that the blockchain landscape is…

Databases · Computer Science 2019-10-23 Tien Tuan Anh Dinh , Anwitaman Datta , Beng Chin Ooi

This paper presents a comprehensive framework for transaction posting and pricing in Layer 2 (L2) blockchain systems, focusing on challenges stemming from fluctuating Layer 1 (L1) gas fees and the congestion issues within L2 networks.…

Computer Science and Game Theory · Computer Science 2025-05-27 Shouqiao Wang , Davide Crapis , Ciamac C. Moallemi

We analyze how secure a block is after the block becomes $k$-deep, i.e., security-latency, for Nakamoto consensus under an exponential network delay model. We provide the fault tolerance and extensive bounds on safety violation…

Cryptography and Security · Computer Science 2025-10-22 Mustafa Doger , Sennur Ulukus

Payment channel is a protocol which allows cryptocurrency users to route multiple transactions through network without committing them to the main blockchain network (mainnet). This ability makes them the most prominent solution to…

Computer Science and Game Theory · Computer Science 2021-07-08 MohammadAmin Fazli , Seyed Moeen Nehzati , MohammadAmin Salarkia

To address the large amount of energy wasted by blockchains, we propose a decentralized consensus protocol for blockchains in which the computation can be used to search for good approximate solutions to any optimization problem. Our…

Distributed, Parallel, and Cluster Computing · Computer Science 2019-12-03 Naoki Shibata

Blockchain applications may offer better fault-tolerance, integrity, traceability and transparency compared to centralized solutions. Despite these benefits, few businesses switch to blockchain-based applications. Industries worry that the…

Distributed, Parallel, and Cluster Computing · Computer Science 2021-12-01 Sadok Ben Toumia , Christian Berger , Hans P. Reiser

Payment channel networks are supposed to overcome technical scalability limitations of blockchain infrastructure by employing a special overlay network with fast payment confirmation and only sporadic settlement of netted transactions on…

Computational Engineering, Finance, and Science · Computer Science 2017-11-08 Felix Engelmann , Florian Glaser , Henning Kopp , Frank Kargl , Christof Weinhardt

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

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

The last decade has experienced a vast interest in Blockchain-based cryptocurrencies with a specific focus on the applications of this technology. However, slow confirmation times of transactions and unforeseeable high fees hamper their…

Cryptography and Security · Computer Science 2020-12-15 Suat Mercan , Enes Erdin , Kemal Akkaya

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

We develop several innovations to bring the best practices of traditional investment funds to the blockchain landscape. Specifically, we illustrate how: 1) fund prices can be updated regularly like mutual funds; 2) performance fees can be…

Cryptography and Security · Computer Science 2024-07-30 Ravi Kashyap

Blockchains based on the celebrated Nakamoto consensus protocol have shown promise in several applications, including cryptocurrencies. However, these blockchains have inherent scalability limits caused by the protocol's consensus…

Cryptography and Security · Computer Science 2021-10-12 Qing Zhang , Xueping Gong , Huizhong Li , Hao Wu , Jiheng Zhang

One-way hash chains have been used in many micropayment schemes due to their simplicity and efficiency. In this paper we introduce the notion of multi-dimensional hash chains, which is a new generalization of traditional one-way hash…

Cryptography and Security · Computer Science 2007-05-23 Quan Son Nguyen

Sharding is a promising technique for addressing the scalability issues of blockchain, and this technique is especially important for IoT, edge, or mobile computing. It divides the $n$ participating nodes into $s$ disjoint groups called…

Distributed, Parallel, and Cluster Computing · Computer Science 2025-01-20 Ramesh Adhikari , Costas Busch , Miroslav Popovic

Throughput limitations of existing blockchain architectures are one of the most significant hurdles for their wide-spread adoption. Attempts to address this challenge include layer-2 solutions, such as Bitcoin's Lightning or Ethereum's…

Distributed, Parallel, and Cluster Computing · Computer Science 2019-09-13 Alexander Hentschel , Dieter Shirley , Layne Lafrance

Blockchains offer a useful abstraction: a trustworthy, decentralized log of totally ordered transactions. Traditional blockchains have problems with scalability and efficiency, preventing their use for many applications. These limitations…

Distributed, Parallel, and Cluster Computing · Computer Science 2018-06-20 Isaac Sheff , Xinwen Wang , Andrew C. Myers , Robbert van Renesse

Blockchain is increasingly offered as blockchain-as-a-service (BaaS) by cloud service providers. However, configuring BaaS appropriately for optimal performance and reliability resorts to try-and-error. A key challenge is that BaaS is often…

Distributed, Parallel, and Cluster Computing · Computer Science 2025-03-21 Seungwoo Jung , Yeonho Yoo , Gyeongsik Yang , Chuck Yoo

The Bitcoin protocol is a significant milestone in the history of money. However, its adoption is currently constrained by the transaction limits of the system. As the chief problem of blockchain technology, the scaling issue has attracted…

Cryptography and Security · Computer Science 2019-04-03 Kazım Rıfat Özyılmaz , Harsh Patel , Ankit Malik