Transaction fee economics in the Ethereum blockchain.
We study the economic determinants of transaction fees in the Ethereum blockchain. We estimate an empirical model based on queueing theory and analyze the factors determining the "gas price" (transaction cost per unit of service, "gas"). Using block‐ and transaction‐level data from the Ethereum bloc...
| Published in: | Economic Inquiry Vol. 60; no. 1; pp. 265 - 293 |
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| Main Authors: | , |
| Format: | Article |
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Wiley-Blackwell
Jan2022
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| Subjects: | |
| Online Access: | View this record in EBSCOhost |
| fields | @attributes: recordID: 1 pdfLink: plink: https://search.ebscohost.com/login.aspx?direct=true&db=ssf&AN=154222458&site=ehost-live header: @attributes: shortDbName: ssf uiTerm: 154222458 longDbName: Social Sciences Full Text (H.W. Wilson) uiTag: AN controlInfo: bkinfo: jinfo: jid: 00952583 EIQ jtl: Economic Inquiry issn: 00952583 maglogo: Y pubinfo: dt: Jan2022 vid: 60 iid: 1 pid: 480 pub: Wiley-Blackwell artinfo: ui: 154222458 10.1111/ecin.13025 ppf: 265 ppct: 28 formats: fmt: – @attributes: type: T – @attributes: type: C – @attributes: type: P size: 1.3MB tig: atl: Transaction fee economics in the Ethereum blockchain. aug: au: Donmez, Anil Karaivanov, Alexander affil: Department of Economics, Simon Fraser University, Burnaby British Columbia, , Canada su: Blockchains Queuing theory Gas prices Transaction costs Administrative fees sug: subj: Blockchains Queuing theory Gas prices Transaction costs Administrative fees keyword: blockchain Ethereum queueing theory time series transaction fees blockchain Ethereum queueing theory time series transaction fees ab: We study the economic determinants of transaction fees in the Ethereum blockchain. We estimate an empirical model based on queueing theory and analyze the factors determining the "gas price" (transaction cost per unit of service, "gas"). Using block‐ and transaction‐level data from the Ethereum blockchain, we show that changes in service demand significantly affect the gas price—when there is high block utilization, per‐unit fees increase on average, with strong nonlinear effect above 90% utilization. The transaction type is another important factor—larger fraction of regular transactions (direct transfers between users) is associated with higher gas price. pubtype: Academic Journal doctype: Article src: R language: English refInfo: copyright: @attributes: flag: N holdings: @attributes: islocal: N |
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