Evaluate alternative transaction fee market mechanisms
I've presented the ideas here online and at multiple events including most recently CRYPTO 2018 today, and I got a positive reception from some Zcash community members and it was suggested that I start a discussion on this topic, so here goes. Currently, most public blockchains, including Ethereum, Bitcoin, and (as I understand) Zcash, use a block size limit and a fee market to regulate the inclusion of transactions and prevent users from spamming the blockchain, forcing transaction senders to pay for the costs they impose on the network. However, this cap-and-auction approach is only one of many ways of achieving this goal, and there are other mechanisms that are worth exploring, that I think are better for several reasons. There are three major problems with the status quo of transaction fee markets: * **Mismatch between volatility of transaction fee levels and social cost of transactions**: transaction fees on mature public blockchains, that have enough usage so that blocks are full, tend to be extremely volatile. On Ethereum, minimum fees are typically around 2 gwei (10^9 gwei = 1 ETH), but sometimes go up to 20-50 gwei and have even on one occasion gone up to over 200 gwei: https://etherscan.io/chart/gasprice. This clearly creates many inefficiencies, because it's absurd to suggest that the cost incurred by the network from accepting one more transaction into a block actually is 100x more when gas prices are 200 gwei than when they are 2 gwei; in both cases, it's a di
Posted by vbuterin on Aug 17, 2018, 10:38 PM
Tags
Related issues
- there are tons of TLDs that are cheap I'm not even sure what you are offering after reading this, but cloud is an even harder sell becau...
- > One can't expect that every driver package submission from every vendor is thoroughly vetted every time, this is a matter of trust and ...
- Too expensive for a worse vehicle than the Model Y (with incentives, it was a >$20K difference).
- Starlink only has 10 Million customers, too expensive for most countries already.
- The U7 Lite only does 2x2 MIMO.
- Iranians use VPNs simply because they want to access the internet.
Raise real-world problems, find people facing the same issue, and discuss solutions.4,000 issues0 comments
pricing (Network)
there are tons of TLDs that are cheap I'm not even sure what you are offering after reading this, but cloud is an even harder sell becau...
> One can't expect that every driver package submission from every vendor is thoroughly vetted every time, this is a matter of trust and ...
Too expensive for a worse vehicle than the Model Y (with incentives, it was a >$20K difference).
Starlink only has 10 Million customers, too expensive for most countries already.
The U7 Lite only does 2x2 MIMO.
Iranians use VPNs simply because they want to access the internet.
> When you don't want the ads and privacy invasion, you don't visit the website.
A vantage point from a very long time ago: The big social media services are pining for the days of CompuServe and Prodigy.
Evaluate alternative transaction fee market mechanisms
I've presented the ideas here online and at multiple events including most recently CRYPTO 2018 today, and I got a positive reception from some Zcash community members and it was suggested that I start a discussion on this topic, so here goes. Currently, most public blockchains, including Ethereum, Bitcoin, and (as I understand) Zcash, use a block size limit and a fee market to regulate the inclusion of transactions and prevent users from spamming the blockchain, forcing transaction senders to pay for the costs they impose on the network. However, this cap-and-auction approach is only one of many ways of achieving this goal, and there are other mechanisms that are worth exploring, that I think are better for several reasons. There are three major problems with the status quo of transaction fee markets: * **Mismatch between volatility of transaction fee levels and social cost of transactions**: transaction fees on mature public blockchains, that have enough usage so that blocks are full, tend to be extremely volatile. On Ethereum, minimum fees are typically around 2 gwei (10^9 gwei = 1 ETH), but sometimes go up to 20-50 gwei and have even on one occasion gone up to over 200 gwei: https://etherscan.io/chart/gasprice. This clearly creates many inefficiencies, because it's absurd to suggest that the cost incurred by the network from accepting one more transaction into a block actually is 100x more when gas prices are 200 gwei than when they are 2 gwei; in both cases, it's a di
Comments (0)
No comments yet. Start the discussion.