Incentivizing Simple Transactions

Introduction

The inception of Bitcoin marked the creation of the first fully decentralized cryptocurrency relying on blockchain technology and electrified the world with its potential. Since then, various blockchains have emerged. Ethereum is of particular interest as it first introduced smart contracts, allowing blockchains to build decentralized applications and handle complex financial transactions. However, the decentralized applications interconnect the vast majority of transactions in a block, making it difficult to parallelize the execution of transactions and introducing throughput limits on Ethereum. In this thesis, we propose a new approach to charge transactions on the blockchain, in a way that incentives simple transactions that do not significantly impact the block’s parallelizability.