IDEAS home Printed from https://ideas.repec.org/p/arx/papers/2212.10337.html
   My bibliography  Save this paper

Efficient Rollup Batch Posting Strategy on Base Layer

Author

Listed:
  • Akaki Mamageishvili
  • Edward W. Felten

Abstract

We design efficient and robust algorithms for the batch posting of rollup chain calldata on the base layer chain, using tools from operations research. We relate the costs of posting and delaying, by converting them to the same units and adding them up. The algorithm that keeps the average and maximum queued number of batches tolerable enough improves the posting costs of the trivial algorithm, which posts batches immediately when they are created, by 8%. On the other hand, the algorithm that only cares moderately about the batch queue length can improve the trivial algorithm posting costs by 29%. Our findings can be used by layer two projects that post data to the base layer at some regular rate.

Suggested Citation

  • Akaki Mamageishvili & Edward W. Felten, 2022. "Efficient Rollup Batch Posting Strategy on Base Layer," Papers 2212.10337, arXiv.org, revised Feb 2023.
  • Handle: RePEc:arx:papers:2212.10337
    as

    Download full text from publisher

    File URL: http://arxiv.org/pdf/2212.10337
    File Function: Latest version
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Arthur F. Veinott, 1965. "The Optimal Inventory Policy for Batch Ordering," Operations Research, INFORMS, vol. 13(3), pages 424-432, June.
    2. Gur Huberman & Jacob D Leshno & Ciamac Moallemi, 2021. "Monopoly without a Monopolist: An Economic Analysis of the Bitcoin Payment System [Blockchain Economics]," The Review of Economic Studies, Review of Economic Studies Ltd, vol. 88(6), pages 3011-3040.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Simplice A. Asongu & Nicholas M. Odhiambo, 2023. "Female unemployment, mobile money innovations and doing business by females," Journal of Innovation and Entrepreneurship, Springer, vol. 12(1), pages 1-26, December.
    2. Jens Gudmundsson & Jens Leth Hougaard & Erik Ansink, 2024. "Towards fully decentralized environmental regulation," Tinbergen Institute Discussion Papers 24-035/VIII, Tinbergen Institute.
    3. Jacob D. Leshno & Elaine Shi & Rafael Pass, 2024. "On the Viability of Open-Source Financial Rails: Economic Security of Permissionless Consensus," Papers 2409.08951, arXiv.org.
    4. Dunbar, Kwamie & Owusu-Amoako, Johnson, 2022. "Cryptocurrency returns under empirical asset pricing," International Review of Financial Analysis, Elsevier, vol. 82(C).
    5. Divakaruni, Anantha & Zimmerman, Peter, 2023. "The Lightning Network: Turning Bitcoin into money," Finance Research Letters, Elsevier, vol. 52(C).
    6. Sun, Yi & Jiang, Shiqing & Jia, Wanjiao & Wang, Yu, 2022. "Blockchain as a cutting-edge technology impacting business: A systematic literature review perspective," Telecommunications Policy, Elsevier, vol. 46(10).
    7. Jing-Sheng Song, 2000. "A Note on Assemble-to-Order Systems with Batch Ordering," Management Science, INFORMS, vol. 46(5), pages 739-743, May.
    8. Reuter, Marco, 2022. "The value of decentralization using the blockchain," ZEW Discussion Papers 22-056, ZEW - Leibniz Centre for European Economic Research.
    9. Raphael A. Auer & Cyril Monnet & Hyun Song Shin, 2021. "Distributed Ledgers and the Governance of Money," CESifo Working Paper Series 9441, CESifo.
    10. Brunnermeier, Markus & Abadi, Joseph, 2018. "Blockchain Economics," CEPR Discussion Papers 13420, C.E.P.R. Discussion Papers.
    11. Lu Wang & Vidyadhar Kulkarni & Hanqin Zhang, 2023. "Inventory dispensation and restocking in multiclass inventory systems: A decoupling approach," Production and Operations Management, Production and Operations Management Society, vol. 32(2), pages 469-484, February.
    12. Bruno Biais & Christophe Bisière & Matthieu Bouvard & Catherine Casamatta & Albert J. Menkveld, 2023. "Equilibrium Bitcoin Pricing," Journal of Finance, American Finance Association, vol. 78(2), pages 967-1014, April.
    13. Joshua S. Gans & Hanna Halaburda, 2023. ""Zero Cost'' Majority Attacks on Permissionless Blockchains," NBER Working Papers 31473, National Bureau of Economic Research, Inc.
    14. Haim Shalit, 2024. "The Nonsense of Bitcoin 1n Portfolio Analysis," Working Papers 2401, Ben-Gurion University of the Negev, Department of Economics.
    15. Almehdawe, Eman & Jewkes, Elizabeth, 2013. "Performance analysis and optimization of hybrid manufacturing systems under a batch ordering policy," International Journal of Production Economics, Elsevier, vol. 144(1), pages 200-208.
    16. Kochel, P., 2007. "Order optimisation in multi-location models with hub-and-spoke structure," International Journal of Production Economics, Elsevier, vol. 108(1-2), pages 368-387, July.
    17. Yu‐Sheng Zheng & Fangruo Chen, 1992. "Inventory policies with quantized ordering," Naval Research Logistics (NRL), John Wiley & Sons, vol. 39(3), pages 285-305, April.
    18. Li, Xiaoming, 2010. "Optimal inventory policies in decentralized supply chains," International Journal of Production Economics, Elsevier, vol. 128(1), pages 303-309, November.
    19. Ketzenberg, Michael & Metters, Richard & Vargas, Vicente, 2002. "Quantifying the benefits of breaking bulk in retail operations," International Journal of Production Economics, Elsevier, vol. 80(3), pages 249-263, December.
    20. Nikolaus Hautsch & Christoph Scheu & Stefan Voigt, 2024. "Building trust takes time: limits to arbitrage for blockchain-based assets," Review of Finance, European Finance Association, vol. 28(4), pages 1345-1381.

    More about this item

    NEP fields

    This paper has been announced in the following NEP Reports:

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:arx:papers:2212.10337. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: arXiv administrators (email available below). General contact details of provider: http://arxiv.org/ .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.