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Modelling and optimizing transaction fees in a proof-of-stake cryptocurrency
KTH, School of Engineering Sciences (SCI), Mathematics (Dept.), Optimization and Systems Theory.
KTH, School of Engineering Sciences (SCI), Mathematics (Dept.), Optimization and Systems Theory.
2018 (English)Independent thesis Basic level (degree of Bachelor), 10 credits / 15 HE creditsStudent thesisAlternative title
Modellering och optimering av transaktionsavgifter i en proof-of-stake kryptovaluta (Swedish)
Abstract [en]

This paper is an attempt to analyze the role of transaction fees in a proof-of-stake cryptocurrency currently in development. The authors have employed a microeconomic, static equilibrium approach to model a market in which the cryptocurrency is exchanged for a physical good. Furthermore, the relationship between transaction capacity and the size of the network has been investigated. It has been shown that the total amount of validator capital and the number of validators can be controlled by setting a fixed fee on transactions as well as a minimum capital requirement on individual validators. The total surplus in the economy has then been optimized by setting a fee and the authors have discussed how a minimal capital requirement could be used to also optimize transaction capacity.

Abstract [sv]

Denna kandidatuppsats ’r ett försök att analysera transaktionsavgiftens roll i en "proof-of-stake"-baserad kryptovaluta under utveckling. Författarna har använt sig av en statisk jämviktsmodell från mikroekonomin för att modellera en marknad på vilken kryptovalutan i fråga används för att handla en fysisk vara. Fortsättningsvis har förhållandet mellan systemets transaktionskapacitet och dess storlek undersökts. Det har visats att den totala mängden kapital från validerare samt antalet validerare kan kontrolleras genom att sätta en fast avgift för transaktioner samt ett minimikrav på kapital för enskilda validerare. Sedan har det totala överskottet optimerats genom att bestämma en avgift och författarna har diskuterat hur ett minimikrav på kapital hade kunnat användas för att också optimera systemets transaktionskapacitet.

Place, publisher, year, edition, pages
2018.
Series
TRITA-SCI-GRU ; 2018:204
Keywords [en]
Cryptocurrency, proof-of-stake, transaction fee, economics
Keywords [sv]
Kryptovaluta, proof-of-stake, transaktionsavgift, ekonomi
National Category
Computational Mathematics
Identifiers
URN: urn:nbn:se:kth:diva-230708OAI: oai:DiVA.org:kth-230708DiVA, id: diva2:1218593
External cooperation
HAJ Enterprise AB
Subject / course
Applied Mathematics and Industrial Economics
Educational program
Master of Science in Engineering - Industrial Engineering and Management
Supervisors
Examiners
Available from: 2018-06-15 Created: 2018-06-14 Last updated: 2018-06-15Bibliographically approved

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CiteExportLink to record
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Citation style
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