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A Systematic Approach to Cryptocurrency Fees

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Financial Cryptography and Data Security (FC 2018)

Part of the book series: Lecture Notes in Computer Science ((LNSC,volume 10958))

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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.

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Notes

  1. 1.

    Information on these operations can be found in the Ethereum Yellow Paper [22].

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Author information

Authors and Affiliations

  1. Ergo Platform, Sestroretsk, Russia

    Alexander Chepurnoy & Dmitry Meshkov

  2. IOHK Research, Sestroretsk, Russia

    Alexander Chepurnoy & Dmitry Meshkov

  3. Helmholtz Institute Jena, Froebelstieg 3, 07743, Jena, Germany

    Vasily Kharin

Authors
  1. Alexander Chepurnoy
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  2. Vasily Kharin
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  3. Dmitry Meshkov
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Corresponding author

Correspondence to Alexander Chepurnoy .

Editor information

Editors and Affiliations

  1. Hebrew University, Jerusalem, Israel

    Aviv Zohar

  2. Technion – Israel Institute of Technology, Haifa, Israel

    Ittay Eyal

  3. University of Melbourne, Parkville, VIC, Australia

    Vanessa Teague

  4. Concordia University, Beaconsfield, QC, Canada

    Jeremy Clark

  5. Computer Science and Mathematics, Stirling University, Stirling, UK

    Andrea Bracciali

  6. Mathematical Institute, University of Oxford, Oxford, UK

    Federico Pintore

  7. Department of Mathematics, University of Trento, Trento, Italy

    Massimiliano Sala

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© 2019 International Financial Cryptography Association

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Chepurnoy, A., Kharin, V., Meshkov, D. (2019). A Systematic Approach to Cryptocurrency Fees. In: Zohar, A., et al. Financial Cryptography and Data Security. FC 2018. Lecture Notes in Computer Science(), vol 10958. Springer, Berlin, Heidelberg. https://doi.org/10.1007/978-3-662-58820-8_2

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  • DOI: https://doi.org/10.1007/978-3-662-58820-8_2

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  • Publisher Name: Springer, Berlin, Heidelberg

  • Print ISBN: 978-3-662-58819-2

  • Online ISBN: 978-3-662-58820-8

  • eBook Packages: Computer ScienceComputer Science (R0)

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