The Blockchain Execution Dilemma: Optimizing Revenue XOR Fair Ordering
A genetic algorithm solves the revenue vs. fairness trade-off in blockchain execution.
A new paper from researchers at TU Delft tackles the blockchain execution dilemma: how to sequence transactions to maximize validator revenue without sacrificing fairness. The team introduces an anytime genetic algorithm that dynamically schedules transactions based on gas prices, object sets, and predicted execution times. Using real-world datasets from Sui and Ethereum, the algorithm boosts validator profit by approximately 15% and accelerates congestion relief by up to 58%.
The research also quantifies the cost of fairness: enforcing strict fair-ordering protocols can reduce validator revenue by 50% to 60% during periods of high congestion. This is the first evidence that rigid fair ordering effectively nullifies the benefits of advanced sequencing. The findings highlight a critical tension for blockchain designers and validators, offering a practical optimization framework to navigate the trade-off.
- Genetic algorithm optimizes transaction sequencing using gas prices, object sets, and predicted execution times.
- Boosts validator profit by ~15% and accelerates congestion relief by up to 58% on Sui and Ethereum datasets.
- Strict fair-ordering reduces validator revenue by 50-60% during high congestion, showing a fundamental trade-off.
Why It Matters
This research provides a practical tool for blockchain validators to optimize revenue while quantifying the cost of fairness.