Stabilizing Congestion in Decentralized Record-Keepers

05/13/2020
by   Assimakis Kattis, et al.
0

We argue that recent developments in proof-of-work consensus mechanisms can be used in accordance with advancements in formal verification techniques to build a distributed payment protocol that addresses important economic drawbacks from cost efficiency, scalability and adaptablity common to current decentralized record-keeping systems. We enable the protocol to autonomously adjust system throughput according to a feasibly computable statistic - system difficulty. We then provide a formal economic analysis of a decentralized market place for record-keeping that is consistent with our protocol design and show that, when block rewards are zero, the system admits stable, self-regulating levels of transaction fees and wait-times across varying levels of demand. We also provide an analysis of the various technological requirements needed to instantiate such a system in a commercially viable setting, and identify relevant research directions.

READ FULL TEXT

page 1

page 2

page 3

page 4

research
12/11/2022

Blockchain Network Analysis: A Comparative Study of Decentralized Banks

Decentralized finance (DeFi) is known for its unique mechanism design, w...
research
02/05/2023

Resilient Consensus Sustained Collaboratively

The recent growth of blockchain technology has accelerated research on d...
research
09/24/2021

Formal Verification of a Distributed Dynamic Reconfiguration Protocol

We present a formal, machine checked TLA+ safety proof of MongoRaftRecon...
research
05/04/2023

Understand Waiting Time in Transaction Fee Mechanism: An Interdisciplinary Perspective

Blockchain enables peer-to-peer transactions in cyberspace without a tru...
research
11/07/2017

Towards an Economic Analysis of Routing in Payment Channel Networks

Payment channel networks are supposed to overcome technical scalability ...
research
12/20/2022

DeFi Risk Transfer: Towards A Fully Decentralized Insurance Protocol

In this paper, we propose a fully decentralized and smart contract-based...
research
03/23/2020

AfricaOS: Using a distributed, proposal-based, replicated state machine towards liberation from the Berlin Conference of 1885

The Berlin Conference of 1885 has influenced the way native Africans, an...

Please sign up or login with your details

Forgot password? Click here to reset