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A Systematic Approach to Cryptocurrency Fees

  • Alexander ChepurnoyEmail author
  • Vasily Kharin
  • Dmitry Meshkov
Conference paper
Part of the Lecture Notes in Computer Science book series (LNCS, volume 10958)

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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Copyright information

© International Financial Cryptography Association 2019

Authors and Affiliations

  • Alexander Chepurnoy
    • 1
    • 2
    Email author
  • Vasily Kharin
    • 3
  • Dmitry Meshkov
    • 1
    • 2
  1. 1.Ergo PlatformSestroretskRussia
  2. 2.IOHK ResearchSestroretskRussia
  3. 3.Helmholtz Institute JenaJenaGermany

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