The Impact of Ethereum throughput and fees on the transaction latency during ICOs

Michael Spain, Sean Foley, Vincent Gramoli

Research output: Chapter in Book/Report/Conference proceedingConference proceeding contribution

Abstract

The Ethereum blockchain has gained popularity for its ability to implement Initial Coin Offerings (ICOs), whereby a buyer enters a market order agreement with a seller in order to purchase cryptographic tokens at an agreed price. The popularity of ICOs in 2017 has created an increasingly adversarial environment among potential buyers, who compete for what is often a fixed supply of tokens offered for a limited period of time. We study the impact of a series of ICOs in order to understand the relationship between transaction fees, throughput and latency in Ethereum. Our analysis considers the effects on both Ethereum’s service providers, known as miners, and users who issue transactions in the network. Our results show that while buyers incentivise miners generously to include their transactions during ICOs, the latency of these transactions is predominantly determined by the levels of supply and demand in the network.
Original languageEnglish
Title of host publicationInternational Conference on Blockchain Economics, Security and Protocols
Subtitle of host publicationTokenomics 2019
EditorsVincent Danos, Maurice Herlihy, Maria Potop-Butucaru, Julien Prat, Sara Tucci-Piergiovanni
Place of PublicationSaarbrücken/Wadern
PublisherDagstuhl Publishing
Number of pages15
ISBN (Electronic)9783959771085
Publication statusPublished - 2019
Externally publishedYes
EventInternational Conference on Blockchain, Economics, Security and Protocols (Tokenomics 2019): Tokenomics - Paris, Paris, France
Duration: 6 May 20197 May 2019
http://tokenomics2019.org/Documents/proceedings-full.pdf

Publication series

NameOASIcs – OpenAccess Series in Informatics
ISSN (Electronic)1868-8969

Conference

ConferenceInternational Conference on Blockchain, Economics, Security and Protocols (Tokenomics 2019)
CountryFrance
CityParis
Period6/05/197/05/19
Internet address

Keywords

  • ICO
  • Gas
  • Ethereum
  • Transaction Fee
  • Latency
  • Fairness

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