A Correlated Equilibrium based Transaction Pricing Mechanism in Blockchain

Abstract

Although transaction fees are not obligatory in most of the current blockchain systems, extensive studies confirm their importance in maintaining the security and sustainability of blockchain. To enhance blockchain in the long term, it is crucial to design effective transaction pricing mechanisms. Different from the existing schemes based on auctions with more consideration about the profit of miners, we resort to game theory and propose a correlated equilibrium based transaction pricing mechanism through solving a pricing game among users with transactions, which can achieve both the individual and global optimum. To avoid the computational complexity exponentially increasing with the number of transactions, we further improve the game-theoretic solution with an approximate algorithm, which can derive almost the same results as the original one but costs significantly reduced time. Experimental results demonstrate the effectiveness and efficiency of our proposed mechanism.