Optimality Despite Chaos in Fee Markets. (arXiv:2212.07175v1 [cs.GT]) | allinfosecnews.com

Dec. 15, 2022, 2:17 a.m. | Stefanos Leonardos, Daniel Reijsbergen, Daniël Reijsbergen, Barnabé Monnot, Georgios Piliouras

cs.CR updates on arXiv.org arxiv.org

Transaction fee markets are essential components of blockchain economies, as
they resolve the inherent scarcity in the number of transactions that can be
added to each block. In early blockchain protocols, this scarcity was resolved
through a first-price auction in which users were forced to guess appropriate
bids from recent blockchain data. Ethereum's EIP-1559 fee market reform
streamlines this process through the use of a base fee that is increased (or
decreased) whenever a block exceeds (or fails to meet) …

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