Authors: Sankarshan Damle, Varul Srivastava, Sujit Gujar

Published on: February 07, 2024

Impact Score: 8.22

Arxiv code: Arxiv:2402.04634

Summary

• What is new: Introduces a novel Transaction Fee Mechanism (rTFM) using on-chain randomness to ensure fairness and incentive compatibility.
• Why this is important: Existing Transaction Fee Mechanisms may not satisfy fairness notions (Zero-fee Transaction Inclusion and Monotonicity) without limiting miners’ utility.
• What the research proposes: A new TFM, rTFM, which uses on-chain randomness to guarantee both fairness to users and incentive compatibility for miners.
• Results: rTFM successfully guarantees incentive compatibility while satisfying fairness constraints, proving a viable solution to existing TFM limitations.

Technical Details

Technological frameworks used: Blockchain technology, specifically around transaction fee mechanisms

Models used: Transactional models incorporating on-chain randomness

Data used: Not specified

Potential Impact

Blockchain platforms and financial institutions using or considering blockchain technology for transactions could benefit or need to adapt to the insights provided.

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