Optimal Publishing Strategies on a Base Layer

Yogev Bar-On, Yishay Mansour

Research output: Chapter in Book/Report/Conference proceedingConference contributionpeer-review

Abstract

A growing number of products use layer 2 solutions to expand the capabilities of primary blockchains like Ethereum, where computation is off-loaded from the root chain, and the results are published to it in bulk. Those include optimistic and zero-knowledge rollups, information oracles, and app-specific chains. This work presents an analysis of layer 2 blockchain strategies determining the optimal times for publishing transactions on the root chain. There is a trade-off between waiting for a better layer 1 gas price and the urgency to finalize layer 2 transactions. We present a model for the problem that captures this trade-off, generalizing previous works, and we analyze the properties of optimal publishing strategies. We show that such optimal strategies hold a computable simple form for a large class of cost functions.

Original languageEnglish
Title of host publicationFinancial Cryptography and Data Security - 28th International Conference, FC 2024, Revised Selected Papers
EditorsJeremy Clark, Elaine Shi
PublisherSpringer Science and Business Media Deutschland GmbH
Pages314-330
Number of pages17
ISBN (Print)9783031786754
DOIs
StatePublished - 2025
Event28th International Conference on Financial Cryptography and Data Security, FC 2024 - Willemstad, Netherlands
Duration: 4 Mar 20248 Mar 2024

Publication series

NameLecture Notes in Computer Science (including subseries Lecture Notes in Artificial Intelligence and Lecture Notes in Bioinformatics)
Volume14744 LNCS

Conference

Conference28th International Conference on Financial Cryptography and Data Security, FC 2024
Country/TerritoryNetherlands
CityWillemstad
Period4/03/248/03/24

Keywords

  • Blockchain
  • Layer 2
  • Online Algorithms
  • Rollup

All Science Journal Classification (ASJC) codes

  • Theoretical Computer Science
  • General Computer Science

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