Economics at your fingertips  

Forecasting short-term transaction fees on a smart contracts platform

Charles Hoffreumon () and Nicolas van Zeebroeck

No 2018-028, Working Papers TIMES² from ULB -- Universite Libre de Bruxelles

Abstract: In the present article, we analyze the transaction fees market on smart contracts-enabling blockchains. On such systems, as opposed to traditional on-premise and cloud computing solutions, users are effectively competing for computational resources through an auction for priority. This paper proposes a way to estimate the bid one has to offer to have a transaction included in the next block. This method outperforms naive bidding (bidding the optimal value of the last block) if the user is realistically "impatient" to have a transaction processed. It also shows that users collectively spend several million of dollar every years for transaction fees that could be avoided without degrading the service received. This is this "waste" we seek to reduce throughour forecasting method.

Keywords: Blockchain; Auctions; Forecasting; Transaction Fees; Smart Contracts (search for similar items in EconPapers)
Pages: 25 p.
Date: 2018-09
New Economics Papers: this item is included in nep-pay
References: View references in EconPapers View complete reference list from CitEc

Published by:

Downloads: (external link) ... OECK-forecasting.pdf Œuvre complète ou partie de l'œuvre (application/pdf)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link:

Ordering information: This working paper can be ordered from ...

Access Statistics for this paper

More papers in Working Papers TIMES² from ULB -- Universite Libre de Bruxelles Contact information at EDIRC.
Bibliographic data for series maintained by Benoit Pauwels ().

Page updated 2024-04-05
Handle: RePEc:ict:wpaper:2013/276709