Dynamic Transaction Storage Strategies for a Sustainable Blockchain

As the core technology behind Bitcoin, Blockchain’s decentralize, tamper-proof, and traceable features make it the preferred platform for organizational innovation. In current Bit-coin, block reward is halved every four years, and transaction fees are expected to become the majority of miner revenues around 2140. When transaction fee dominates mining rewards, strategic deviations such as Selfish Mining, Undercutting, and Mining Gap could threaten the integrity and security of the Blockchain. In this paper, we propose a set of Dynamic Transaction Storage (DTS) strategies for maintaining a sustainable Blockchain under transaction-fee regime. Through the systematic simulation, we demonstrate that block incentive volatility can be reduced by applying DTS strategies, and thus avoid strategic deviations. With DTS, public Blockchains such as Bitcoin become sustainable when the mining reward is solely based on transaction fee.