Is My Transaction Done Yet? An Empirical Study of Transaction Processing Times in the Ethereum Blockchain Platform

Abstract

Ethereum is one of the most popular platforms for the development of blockchain-powered applications. These applications are known as ÐApps. When engineering ÐApps, developers need to translate requests captured in the front-end of their application into one or more smart contract transactions. Developers need to pay for these transactions and, the more they pay (i.e., the higher the gas price), the faster the transaction is likely to be processed. Developing cost-effective ÐApps is far from trivial, as developers need to optimize the balance between cost (transaction fees) and user experience (transaction processing times). Online services have been developed to provide transaction issuers (e.g., ÐApp developers) with an estimate of how long transactions will take to be processed given a certain gas price. These estimation services are crucial in the Ethereum domain and several popular wallets such as Metamask rely on them. However, despite their key role, their accuracy has not been empirically investigated so far. In this article, we quantify the transaction processing times in Ethereum, investigate the relationship between processing times and gas prices, and determine the accuracy of state-of-the-practice estimation services. Our results indicate that transactions are processed in a median of 57 seconds and that 90% of the transactions are processed within 8 minutes. We also show that higher gas prices result in faster transaction processing times with diminishing returns. In particular, we observe no practical difference in processing time between expensive and very expensive transactions. With regards to the accuracy of processing time estimation services, we observe that they are equivalent. However, when stratifying transactions by gas prices, we observe that Etherscan's Gas Tracker is the most accurate estimation service for the very cheap and cheap transactions. EthGasStation's Gas Price API, in turn, is the most accurate estimation service for regular, expensive, and very expensive transactions. In a post-hoc study, we design a simple linear regression model with only one feature that outperforms the Gas Tracker for very cheap and cheap transactions and that performs as accurately as the EthGasStation model for the remaining categories. Based on our findings, ÐApp developers can make more informed decisions concerning the choice of the gas price of their application-issued transactions.