Macro seminar
Time : 12h15 – 13h30
Date : 27 November 2023

Salle 3001

FABI Michele (CREST) “Blockchain design with transmission delays”

Abstract: I develop a parsimonious model of blockchain consensus with transmission delays. I characterize the optimal reward mechanism for miners, showing that it includes both seigniorage from token emissions and transaction fees. Seigniorage convinces miners to operate when pending transactions are scarce. Fees make miners willing to record transactions by offsetting the higher forking risk stemming from increased block size. I demonstrate that transmission delays create a limited-scalability problem. I also show that rewarding forked blocks can raise welfare and that burning tokens can solve consensus incentive problems when verification delays replace transmission delays.

Alessandro RIBONI (CREST)