This paper examines the equilibrium between user transaction fees and miner profitability within proof-of-work-based blockchains, specifically focusing on Bitcoin. We analyze the dependency of mining profit on factors such as transaction fee adjustments and operational costs, particularly electricity. By applying a multidimensional profitability model and performing a sensitivity analysis, we evaluate ...

Proof-of-work based cryptocurrencies, like Bitcoin, have a fee market where transactions are included in the blockchain according to a first-price auction for block space. Many attempts have been made to adjust and predict the fee volatility, but even well-formed transactions sometimes experience delays and evictions unless an enormous fee is paid. % In this paper, we present a novel ...

This thesis describes a longitudinal study of Bitcoin, the perhaps most popular blockchain based system today. Public blockchains have emerged as a plausible messaging substrate for applications that require highly reliable communication. However, sending messages over existing blockchains can be cumbersome and costly as miners require payment to establish consensus on the sequence of messages, ...