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Frontiers of Engineering Reports on Leading-Edge Engineering from the 2019 Symposium (2020) / Chapter Skim
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Cryptocurrencies as Marketplaces - Jacob Leshno
Pages 103-108

The Chapter Skim interface presents what we've algorithmically identified as the most significant single chunk of text within every page in the chapter.
Select key terms on the right to highlight them within pages of the chapter.


From page 103...
... For example, PayPal Holdings Inc. maintains the required computer infrastructure and charges usage fees to fund its activities and make a profit.
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From page 104...
... The system processes transactions in batches called blocks. To ensure that a block is propagated throughout the network before the next one is issued, the p ­ rotocol limits block size and frequency, limiting the system's transaction processing capacity.
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From page 105...
... We offer closed-form expressions for the equilibrium fees and waiting times. We find that total transaction fees depend on three parameters: maximal block size, congestion or load (transaction arrival rate divided by system's capacity)
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From page 106...
... This ensures that total transaction fees and the level of infrastructure are kept at a constant level. Our analysis also indicates that smaller block sizes allow the system to raise revenue more efficiently: a smaller block size allows the system to raise the same amount of revenue with shorter transaction processing delays.
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From page 107...
... Columbia Business School Research Paper No.
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Key Terms

  • transaction processing
  • transaction fee
  • block size
  • fee schedule
  • block rewards

  • processing delays
  • processing delay
  • total transaction
  • raise revenue
  • bitcoin payment

  • users choose
  • block sizes
  • shorter transaction
  • competitive transaction
  • processing capacity

  • simplified economic
  • equilibrium fee
  • expected processing
  • gain processing
  • paying transaction

  • processing priority
  • equilibrium fees
  • fees users
  • transaction processed
  • limits block

  • computer protocol
  • payment processing
  • processing infrastructure
  • maximal block
  • transaction arrival


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