Performance modeling of bitcoin blockchain: Mining mechanism and transaction-confirmation process

Abstract

Bitcoin is one of popular cryptocurrencies widely used over the world, and its blockchain technology has attracted considerable attention. In Bitcoin system, it has been reported that transactions are prioritized according to transaction fees, and that transactions with high priorities are likely to be confirmed faster than those with low priorities. In this paper, we consider performance modeling of Bitcoin-blockchain system in order to characterize the transaction-confirmation time. We first introduce the Bitcoin system, focusing on proof-of-work, the consensus mechanism of Bitcoin blockchain. Then, we show some queueing models and its analytical results, discussing the implications and insights obtained from the queueing models.