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 proceedingConference contribution

Abstract / Description of output

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 languageEnglish
Title of host publicationApplied Cryptography and Network Security: 20th International Conference, ACNS 2022, Rome, Italy, June 20–23, 2022, Proceedings
EditorsGiuseppe Ateniese, Daniele Venturi
PublisherSpringer, Cham
Pages707-726
Number of pages20
ISBN (Electronic)978-3-031-09234-3
ISBN (Print)978-3-031-09233-6
DOIs
Publication statusPublished - 18 Jun 2022
EventThe 20th International Conference on Applied Cryptography and Network Security - Rome, Italy
Duration: 20 Jun 202223 Jun 2022
Conference number: 20
https://acns22.di.uniroma1.it/

Publication series

NameLecture Notes in Computer Science
PublisherSpringer Cham
Volume13269
ISSN (Print)0302-9743
ISSN (Electronic)1611-3349

Conference

ConferenceThe 20th International Conference on Applied Cryptography and Network Security
Abbreviated titleACNS 2022
Country/TerritoryItaly
CityRome
Period20/06/2223/06/22
Internet address

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