Analysis of the Factors Influencing the Formation of the Transaction Price in the Blockchain

Abstract

The blockchain as the tool was invented together with the Bitcoin and evolving. Despite the fact that new blockchains appeared, like Ethereum and other, the first one was not explored enough from the perspective of understanding dependencies between its elements. Mathematical and cryptographic dependencies are well described in the scientific literature, but dependencies exploration and description in relation to its economical usage of it is still missing. The blockchain structure and mechanics provide that transaction registered within the blockchain are not free for the final user. The transaction price in the Blockchain exists. This transaction price can be decisive for the implementation of a project using blockchain. Understanding factors, which affect this price forming helps to understand frames, when usage of the blockchain is effective. Taking into account all above mentioned, one of the targets of this article is to analyze the life cycle of transactions in the blockchain and determine the factors that have a significant impact on the formation of the transaction price in the Bitcoin Blockchain. From the other hand blockchain assumed as the competitor or even “killer” of the traditional payment systems. There is the list of elements, which should be taken in account comparing both approaches for the transaction execution. This list includes comparing deficits and advantages of both systems, like security issues, transaction speed issues and so on. From this perspective based on the comparing the transactional price forming in both systems, author assess the prospects for using transactions in the Blockchain in comparing with the traditional payment systems.

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