Cryptology ePrint Archive: Report 2018/078

A Systematic Approach To Cryptocurrency Fees

Alexander Chepurnoy and Vasily Kharin and Dmitry Meshkov

Abstract: This paper is devoted to the study of transaction fees in massively replicated open blockchain systems. In such systems, like Bitcoin, a snapshot of current state required for the validation of transactions is being held in the memory, which eventually becomes a scarce resource. Uncontrolled state growth can lead to security issues. We propose a modification of a transaction fee scheme based on how much additional space will be needed for the objects created as a result of transaction processing and for how long will they live in the state. We also work out the way to combine fees charged for different resources spent (bandwidth, random-access state memory, processor cycles) in a composite fee and demonstrate consistency of the approach by analyzing the statistics from Ethereum network. We show a possible implementation for state-related fee in a form of regular payments to miners.

Category / Keywords: applications / cryptocurrency, bitcoin, blockchain, ethereum

Original Publication (with minor differences): Bitcoin Workshop associated w. FC'18

Date: received 18 Jan 2018

Contact author: alex chepurnoy at iohk io

Available format(s): PDF | BibTeX Citation

Version: 20180118:130026 (All versions of this report)

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