Babel Fees via Limited Liabilities

Manuel M. T. Chakravarty; Nikos Karayannidis; Aggelos Kiayias; Michael Peyton Jones; Polina Vinogradova

doi:10.1007/978-3-031-09234-3_35

Babel Fees via Limited Liabilities

Manuel M. T. Chakravarty, Nikos Karayannidis, Aggelos Kiayias, Michael Peyton Jones, Polina Vinogradova

Research output: Chapter in Book/Report/Conference proceeding › Conference contribution

Abstract

Custom currencies (ERC-20) on Ethereum are wildly popular, but they are second class to the primary currency Ether. Custom currencies are more complex and more expensive to handle than the primary currency as their accounting is not natively performed by the underlying ledger, but instead in user-defined contract code. Furthermore, and quite importantly, transaction fees can only be paid in Ether.
In this paper, we focus on being able to pay transaction fees in custom currencies. We achieve this by way of a mechanism permitting short term liabilities to pay transaction fees in conjunction with offers of custom currencies to compensate for those liabilities. This enables block producers to accept custom currencies in exchange for settling liabilities of transactions that they process.
We present formal ledger rules to handle liabilities together with the concept of babel fees to pay transaction fees in custom currencies. We also discuss how clients can determine what fees they have to pay, and we present a solution to the knapsack problem variant that block producers have to solve in the presence of babel fees to optimise their profits.

Original language	English
Title of host publication	Applied Cryptography and Network Security: 20th International Conference, ACNS 2022, Rome, Italy, June 20–23, 2022, Proceedings
Editors	Giuseppe Ateniese, Daniele Venturi
Publisher	Springer, Cham
Pages	707-726
Number of pages	20
ISBN (Electronic)	978-3-031-09234-3
ISBN (Print)	978-3-031-09233-6
DOIs	https://doi.org/10.1007/978-3-031-09234-3_35
Publication status	Published - 18 Jun 2022
Event	The 20th International Conference on Applied Cryptography and Network Security - Rome, Italy Duration: 20 Jun 2022 → 23 Jun 2022 Conference number: 20 https://acns22.di.uniroma1.it/

Publication series

Name	Lecture Notes in Computer Science
Publisher	Springer Cham
Volume	13269
ISSN (Print)	0302-9743
ISSN (Electronic)	1611-3349

Conference

Conference	The 20th International Conference on Applied Cryptography and Network Security
Abbreviated title	ACNS 2022
Country/Territory	Italy
City	Rome
Period	20/06/22 → 23/06/22
Internet address	https://acns22.di.uniroma1.it/

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Babel Fees_CHAKRAVARTY_DOA18032022_AFVAccepted author manuscript, 507 KBLicence: Creative Commons: Attribution (CC-BY)

https://link.springer.com/chapter/10.1007/978-3-031-09234-3_35Licence: All Rights Reserved

Cite this

Chakravarty, M. M. T., Karayannidis, N., Kiayias, A., Peyton Jones, M., & Vinogradova, P. (2022). Babel Fees via Limited Liabilities. In G. Ateniese, & D. Venturi (Eds.), Applied Cryptography and Network Security: 20th International Conference, ACNS 2022, Rome, Italy, June 20–23, 2022, Proceedings (pp. 707-726). (Lecture Notes in Computer Science; Vol. 13269). Springer, Cham. https://doi.org/10.1007/978-3-031-09234-3_35

@inproceedings{a651c461ada94ea5a117f4b61608c342,

title = "Babel Fees via Limited Liabilities",

abstract = "Custom currencies (ERC-20) on Ethereum are wildly popular, but they are second class to the primary currency Ether. Custom currencies are more complex and more expensive to handle than the primary currency as their accounting is not natively performed by the underlying ledger, but instead in user-defined contract code. Furthermore, and quite importantly, transaction fees can only be paid in Ether. In this paper, we focus on being able to pay transaction fees in custom currencies. We achieve this by way of a mechanism permitting short term liabilities to pay transaction fees in conjunction with offers of custom currencies to compensate for those liabilities. This enables block producers to accept custom currencies in exchange for settling liabilities of transactions that they process. We present formal ledger rules to handle liabilities together with the concept of babel fees to pay transaction fees in custom currencies. We also discuss how clients can determine what fees they have to pay, and we present a solution to the knapsack problem variant that block producers have to solve in the presence of babel fees to optimise their profits.",

author = "Chakravarty, {Manuel M. T.} and Nikos Karayannidis and Aggelos Kiayias and {Peyton Jones}, Michael and Polina Vinogradova",

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series = "Lecture Notes in Computer Science",

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Chakravarty, MMT, Karayannidis, N, Kiayias, A, Peyton Jones, M & Vinogradova, P 2022, Babel Fees via Limited Liabilities. in G Ateniese & D Venturi (eds), Applied Cryptography and Network Security: 20th International Conference, ACNS 2022, Rome, Italy, June 20–23, 2022, Proceedings. Lecture Notes in Computer Science, vol. 13269, Springer, Cham, pp. 707-726, The 20th International Conference on Applied Cryptography and Network Security, Rome, Italy, 20/06/22. https://doi.org/10.1007/978-3-031-09234-3_35

Babel Fees via Limited Liabilities. / Chakravarty, Manuel M. T.; Karayannidis, Nikos; Kiayias, Aggelos et al.

Applied Cryptography and Network Security: 20th International Conference, ACNS 2022, Rome, Italy, June 20–23, 2022, Proceedings. ed. / Giuseppe Ateniese; Daniele Venturi. Springer, Cham, 2022. p. 707-726 (Lecture Notes in Computer Science; Vol. 13269).

Research output: Chapter in Book/Report/Conference proceeding › Conference contribution

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T1 - Babel Fees via Limited Liabilities

AU - Chakravarty, Manuel M. T.

AU - Karayannidis, Nikos

AU - Kiayias, Aggelos

AU - Peyton Jones, Michael

AU - Vinogradova, Polina

N1 - Conference code: 20

PY - 2022/6/18

Y1 - 2022/6/18

N2 - Custom currencies (ERC-20) on Ethereum are wildly popular, but they are second class to the primary currency Ether. Custom currencies are more complex and more expensive to handle than the primary currency as their accounting is not natively performed by the underlying ledger, but instead in user-defined contract code. Furthermore, and quite importantly, transaction fees can only be paid in Ether. In this paper, we focus on being able to pay transaction fees in custom currencies. We achieve this by way of a mechanism permitting short term liabilities to pay transaction fees in conjunction with offers of custom currencies to compensate for those liabilities. This enables block producers to accept custom currencies in exchange for settling liabilities of transactions that they process. We present formal ledger rules to handle liabilities together with the concept of babel fees to pay transaction fees in custom currencies. We also discuss how clients can determine what fees they have to pay, and we present a solution to the knapsack problem variant that block producers have to solve in the presence of babel fees to optimise their profits.

AB - Custom currencies (ERC-20) on Ethereum are wildly popular, but they are second class to the primary currency Ether. Custom currencies are more complex and more expensive to handle than the primary currency as their accounting is not natively performed by the underlying ledger, but instead in user-defined contract code. Furthermore, and quite importantly, transaction fees can only be paid in Ether. In this paper, we focus on being able to pay transaction fees in custom currencies. We achieve this by way of a mechanism permitting short term liabilities to pay transaction fees in conjunction with offers of custom currencies to compensate for those liabilities. This enables block producers to accept custom currencies in exchange for settling liabilities of transactions that they process. We present formal ledger rules to handle liabilities together with the concept of babel fees to pay transaction fees in custom currencies. We also discuss how clients can determine what fees they have to pay, and we present a solution to the knapsack problem variant that block producers have to solve in the presence of babel fees to optimise their profits.

U2 - 10.1007/978-3-031-09234-3_35

DO - 10.1007/978-3-031-09234-3_35

M3 - Conference contribution

SN - 978-3-031-09233-6

T3 - Lecture Notes in Computer Science

SP - 707

EP - 726

BT - Applied Cryptography and Network Security: 20th International Conference, ACNS 2022, Rome, Italy, June 20–23, 2022, Proceedings

A2 - Ateniese, Giuseppe

A2 - Venturi, Daniele

PB - Springer, Cham

T2 - The 20th International Conference on Applied Cryptography and Network Security

Y2 - 20 June 2022 through 23 June 2022

ER -

Chakravarty MMT, Karayannidis N, Kiayias A, Peyton Jones M, Vinogradova P. Babel Fees via Limited Liabilities. In Ateniese G, Venturi D, editors, Applied Cryptography and Network Security: 20th International Conference, ACNS 2022, Rome, Italy, June 20–23, 2022, Proceedings. Springer, Cham. 2022. p. 707-726. (Lecture Notes in Computer Science). doi: 10.1007/978-3-031-09234-3_35

Babel Fees via Limited Liabilities

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