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Minimizing block incentive volatility through Verkle tree-based dynamic transaction storage
Zhao, Xiongfei1; Zhang, Gerui2; Long, Hou Wan3; Si, Yain Whar1
2024-05-01
Source PublicationDecision Support Systems
ABS Journal Level3
ISSN0167-9236
Volume180Pages:114180
Abstract

Transaction fees are a crucial revenue source for miners in public and consortium blockchains. However, while public blockchains have additional revenue streams, transaction fees serve as the primary income for miners in consortium blockchains formed by various financial institutions. These miners allocate different levels of computing resources to process transactions and earn corresponding fees. Nonetheless, relying solely on transaction fees can lead to significant volatility and encourage non-standard mining behaviors, thereby posing threats to the blockchain's security and integrity. Despite previous attempts to mitigate the impact of transaction fees on illicit mining behaviors, a comprehensive solution to this vulnerability is yet to be established. To address this gap, we introduce a novel approach that leverages Dynamic Transaction Storage (DTS) strategies to effectively minimize block incentive volatility. Our solution implements a Verkle tree-based storage mechanism to reduce bandwidth consumption. Moreover, to configure the DTS strategies, we evaluate several optimization algorithms and formulate the challenge as a Vehicle Routing Problem. Our experiments conducted using historical transactions from Bitcoin and remittance data from the Industrial and Commercial Bank of China reveal that the strategy focusing on time-based transaction incorporation priority, while excluding a designated space for small-fee transactions, as discovered by the gradient-based optimizer algorithm, proves most effective in reducing volatility. Hence, the DTS strategy can sustain stable block incentives irrespective of transaction types or user bidding behavior. Furthermore, the inclusion of higher-fee transactions, often smaller in size, can alleviate propagation delays and the occurrence of forks.

KeywordBlock Incentive Blockchain Dynamic Transaction Storage Transaction Fees Vehicle Routing Problem Verkle Tree
DOI10.1016/j.dss.2024.114180
URLView the original
Indexed BySCIE
Language英語English
WOS Research AreaComputer Science ; Operations Research & Management Science
WOS SubjectComputer Science, Artificial Intelligence ; Computer Science, Information Systems ; Operations Research & Management Science
WOS IDWOS:001179467300001
PublisherELSEVIERRADARWEG 29, 1043 NX AMSTERDAM, NETHERLANDS
Scopus ID2-s2.0-85184140153
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Citation statistics
Document TypeJournal article
CollectionFaculty of Science and Technology
DEPARTMENT OF ELECTRICAL AND COMPUTER ENGINEERING
DEPARTMENT OF COMPUTER AND INFORMATION SCIENCE
Corresponding AuthorSi, Yain Whar
Affiliation1.Department of Computer and Information Science, University of Macau, Macao
2.Center for Data Science, University of Macau, Macao
3.Department of Statistics, The Chinese University of Hong Kong, Hong Kong
First Author AffilicationUniversity of Macau
Corresponding Author AffilicationUniversity of Macau
Recommended Citation
GB/T 7714
Zhao, Xiongfei,Zhang, Gerui,Long, Hou Wan,et al. Minimizing block incentive volatility through Verkle tree-based dynamic transaction storage[J]. Decision Support Systems, 2024, 180, 114180.
APA Zhao, Xiongfei., Zhang, Gerui., Long, Hou Wan., & Si, Yain Whar (2024). Minimizing block incentive volatility through Verkle tree-based dynamic transaction storage. Decision Support Systems, 180, 114180.
MLA Zhao, Xiongfei,et al."Minimizing block incentive volatility through Verkle tree-based dynamic transaction storage".Decision Support Systems 180(2024):114180.
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