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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

Blockchain transactions consume diverse resources, foremost among them storage, but also computation, communication, and others. Efficiently charging for these resources is crucial for effective system resource allocation and long-term…

Computer Science and Game Theory · Computer Science 2025-06-17 Aggelos Kiayias , Elias Koutsoupias , Giorgos Panagiotakos , Kyriaki Zioga

Layer-2 (L2) protocols address the fundamental limitations of Layer-1 (L1) blockchains by offloading computation while anchoring trust to the parent chain. This architectural shift, while boosting throughput, introduces a new, complex…

Cryptography and Security · Computer Science 2026-04-24 Ekleen Kaur , Marko Suvajdzic

Blockchain enables peer-to-peer transactions in cyberspace without a trusted third party. The rapid growth of Ethereum and smart contract blockchains generally calls for well-designed Transaction Fee Mechanisms (TFMs) to allocate limited…

General Economics · Economics 2023-05-05 Luyao Zhang , Fan Zhang

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

Layer-2 (L2) blockchains inherit Ethereums security guarantees while reducing gas fees. As a result, they are gaining traction among traders at Automated Market Makers (AMMs), sparking debate over whether they contribute to liquidity…

Computational Engineering, Finance, and Science · Computer Science 2025-03-14 Krzysztof Gogol , Manvir Schneider , Claudio Tessone , Benjamin Livshits

In traditional public blockchain networks, transaction fees are only allocated to full nodes (i.e., miners). However, the lack of relay rewards reduces the willingness of light nodes to relay transactions, especially in the…

Networking and Internet Architecture · Computer Science 2024-01-25 Weiyi Wang , Yutao Jiao , Jin Chen , Wenting Dai , Jiawen Kang , Yuhua Xu

The first generation of blockchain focused on digital currencies and secure storage, management and transfer of tokenized values. Thereafter, the focus has been shifting from currencies to a broader application space. In this paper, we…

Cryptography and Security · Computer Science 2021-03-23 Andrea Merlina , Roman Vitenberg , Vinay Setty

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

Transactive energy plays a key role in the operation and energy management of future power systems. However, the conventional operational mechanism, which follows a centralized design, is often less secure, vulnerable to malicious…

Systems and Control · Electrical Eng. & Systems 2020-10-27 Qing Yang , Hao 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

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

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

Blockchains have block-size limits to ensure the entire cluster can keep up with the tip of the chain. These block-size limits are usually single-dimensional, but richer multidimensional constraints allow for greater throughput. The…

Computer Science and Game Theory · Computer Science 2025-04-23 Nir Lavee , Noam Nisan , Mallesh Pai , Max Resnick

As more and more distributed renewable energy resources are integrated to the grid, the traditional consumers have become the prosumers who can sell back their surplus energy to the others who are in energy shortage. This peer-to-peer (P2P)…

Computers and Society · Computer Science 2018-10-15 Van Hoa Nguyen , Yvon Besanger , Quoc Tuan Tran , Minh Tri Le

With the widespread adoption of Renewable Energy Sources (RESs) in low-voltage distribution systems, opportunities for energy trading among peers have emerged. In particular, the advent of distributed ledgers and blockchain technologies has…

Systems and Control · Electrical Eng. & Systems 2023-09-07 Saeed Nasiri

In peer-to-peer (P2P) energy trading, a secured infrastructure is required to manage trade and record monetary transactions. A central server/authority can be used for this. But there is a risk of central authority influencing the energy…

Computer Science and Game Theory · Computer Science 2022-09-19 Nitin Singha , V Shreyas , Sandeep Kumar

Machine learning is critical for innovation and efficiency in financial markets, offering predictive models and data-driven decision-making. However, challenges such as missing data, lack of transparency, untimely updates, insecurity, and…

General Economics · Economics 2024-11-27 Jingfeng Chen , Wanlin Deng , Dangxing Chen , Luyao Zhang

In this paper, we develop a more general framework of block-structured Markov processes in the queueing study of blockchain systems, which can provide analysis both for the stationary performance measures and for the sojourn times of any…

Cryptography and Security · Computer Science 2019-04-09 Quan-Lin Li , Jing-Yu Ma , Yan-Xia Chang , Fan-Qi Ma , Hai-Bo Yu

Federated Learning (FL) enables collaborative model training without sharing raw data, preserving privacy while harnessing distributed datasets. However, traditional FL systems often rely on centralized aggregating mechanisms, introducing…

Machine Learning · Computer Science 2025-02-21 Bijun Wu , Oshani Seneviratne