arXiv · 2005.06093
Stabilizing Congestion in Decentralized Record-Keepers
Abstract
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.
Explore related subjects
Keep this discovery
Assimakis Kattis, Fabian Trottner. 2020-05-13. Stabilizing Congestion in Decentralized Record-Keepers. https://arxiv.org/abs/2005.06093
Cite the original work for its findings. Save a collection to share your selection of sources.