An Efficient Miner Strategy for Selecting Cryptocurrency Transactions

Santos, Saulo dos; Chukwuocha, Chukwuka; Kamali, Shahin; Thulasiram, Ruppa K.

doi:10.1109/blockchain.2019.00024

Cited by 11 publications

(2 citation statements)

References 9 publications

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“…The nodes capable of adding new blocks are known as miners [20]. Miners are responsible for the validation, and verification of the transactions as well as their authenticity.…”

Section: B Minersmentioning

confidence: 99%

A Survey on Consensus Algorithms in Blockchain-Based Applications: Architecture, Taxonomy, and Operational Issues

Islam

Hossain

et al. 2023

IEEE Access

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Recently, Blockchain-based applications have become immensely popular because of limited reliance on a single entity, unlike a centralized system. However, reaching a consensus among blockchain networks is a challenging and vital aspect of blockchain-based applications. There are various types of blockchain networks for different kinds of application scenarios. Among all of them, the consensus algorithm is the most crucial part of reaching an agreement in the complex blockchain network. Over the years, researchers have focused on dealing with the challenges like distributed computing, storage, transaction speed, security, validity, interoperability, and many more. However, only some of them are appropriate for all domains. Therefore, this paper presents an extensive study of different types of consensus protocols used in existing blockchain solutions with the strength and limitations of each algorithm. We also provide an inherent comparison among different algorithms to understand consensus protocol selection better. Moreover, we investigate operational and interoperability issues in existing blockchain-based applications to understand challenges and provide recommendations for future developers.INDEX TERMS Blockchain, consensus algorithm, interoperability, cross-chain transactions, architecture, operational issues, applications, research directions. I. INTRODUCTIONT HE blockchain concept was first introduced by Haber and Stornetta [1], which is considered one of the technologies with the most potential. After that the introduction of Bitcoin by Nakamoto [2], it has attracted intense attention from all over the world. In Blockchain systems, different cryptographic protocols, like hash functions, digital signatures, etc., are used to maintain the authenticity and security of the data. Blockchain is a distributed ledger system that keeps data secure from unauthorized access. Blockchain technology allows users to add, view, and validate transactions to the distributed ledger. These transactions often take place with the consent of all involved users. Blockchain uses a consensus mechanism to ensure that all transactions are accurate.In a trustless environment, blockchain provides users with desirable qualities like decentralization, autonomy, integrity, immutability, verification, fault-tolerance, anonymity, auditability, and transparency, which have received significant academic and industrial attention recently years [3]-[6]. However, the blockchain system is trustless and ensures blockchain-enabled trust through other cryptographic peerto-peer communication in the decentralized network. Further verification and validation mechanisms are employed

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“…The nodes capable of adding new blocks are known as miners [20]. Miners are responsible for the validation, and verification of the transactions as well as their authenticity.…”

Section: B Minersmentioning

confidence: 99%

A Survey on Consensus Algorithms in Blockchain-Based Applications: Architecture, Taxonomy, and Operational Issues

Islam

Hossain

et al. 2023

IEEE Access

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“…The reference rules of the Bitcoin Wiki [3] define the fee rate x, which is the fraction of fees per transaction size, Miners sort transactions based on this metric and solve the Knapsack problem to fill a new block with transactions that maximize it. Some notable alternatives also focus on fee rate [10,29], while reference rules [3] used to also take into account the UTxO age.…”

Section: Definition 13 a Fee Functionmentioning

confidence: 99%

Efficient State Management in Distributed Ledgers

Karakostas

Karayannidis²,

Kiayias

2021

Financial Cryptography and Data Security

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Distributed ledgers implement a storage layer, on top of which a shared state is maintained in a decentralized manner. In UTxObased ledgers, like Bitcoin, the shared state is the set of all unspent outputs (UTxOs), which serve as inputs to future transactions. The continuously increasing size of this shared state will gradually render its maintenance unaffordable. Our work investigates techniques that minimize the shared state of the distributed ledger, i.e., the in-memory UTxO set. To this end, we follow two directions: a) we propose novel transaction optimization techniques to be followed by wallets, so as to create transactions that reduce the shared state cost and b) propose a novel fee scheme that incentivizes the creation of "state-friendly" transactions. We devise an abstract ledger model, expressed via a series of algebraic operators, and define the transaction optimization problem of minimizing the shared state; we also propose a multi-layered algorithm that approximates the optimal solution to this problem. Finally, we define the necessary conditions such that a ledger's fee scheme incentivizes proper state management and propose a state efficient fee function for Bitcoin.

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