Researcher ORCID Identifier
Date of Submission
Campus Only Senior Thesis
Bachelor of Arts
2021 Xuehan Jiang
EIP 1559 was proposed to improve the Ethereum transaction mechanism as current transaction fees have been observed to become unacceptably high and threaten the viability and sustainable growth of the Ethereum network. This paper compares and analyzes the current and proposed EIP 1559 transaction fee mechanism, and offers a game-theoretic analysis of the three main aspects: transaction fee volatility, user experience, and the possibility of potential miner attacks. We provide further evidence of the problems and limitations of the current transaction mechanism. We find that EIP 1559 lowers the transaction fee volatility and improves the user experience by providing a more predictable bidding price and an obvious optimal bidding strategy under certain conditions. However, EIP 1559 compared to the current transaction fee mechanism has a higher chance to incentivize miner collusion. Two alternative mechanisms are provided.
Jiang, Xuehan, "Analysis of the Ethereum Current Transaction Fee Mechanism and EIP 1559" (2021). CMC Senior Theses. 2608.
This thesis is restricted to the Claremont Colleges current faculty, students, and staff.