Dissemin is shutting down on January 1st, 2025

Published in

Association for Computing Machinery (ACM), ACM Transactions on Internet Technology, 3(22), p. 1-28, 2022

DOI: 10.1145/3528669

Links

Tools

Export citation

Search in Google Scholar

On Optimizing Transaction Fees in Bitcoin using AI: Investigation on Miners Inclusion Pattern

This paper was not found in any repository, but could be made available legally by the author.
This paper was not found in any repository, but could be made available legally by the author.

Full text: Unavailable

Green circle
Preprint: archiving allowed
Green circle
Postprint: archiving allowed
Red circle
Published version: archiving forbidden
Data provided by SHERPA/RoMEO

Abstract

The transaction-rate bottleneck built into popular proof-of-work (PoW)-based cryptocurrencies, like Bitcoin and Ethereum, leads to fee markets where transactions are included 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 unexpected delays and evictions unless a substantial fee is offered. In this article, we propose a novel transaction inclusion model that describes the mechanisms and patterns governing miners decisions to include individual transactions in the Bitcoin system. Using this model we devise a Machine Learning (ML) approach to predict transaction inclusion. We evaluate our predictions method using historical observations of the Bitcoin network from a five month period that includes more than 30 million transactions and 120 million entries. We find that our Machine Learning (ML) model can predict fee volatility with an accuracy of up to 91%. Our findings enable Bitcoin users to improve their fee expenses and the approval time for their transactions.