Tony Kim October 12, 2024 13:09
Noam Nisan explains the concept of multidimensional fees in blockchain, highlighting the distinction between easy and hard fee dimensions and their impact on transaction efficiency.
The concept of multidimensional fees in blockchain transactions has gained attention as experts seek ways to optimize fee mechanisms. According to a16z crypto, traditional one-dimensional gas fees may not be able to adequately address the complexity of resource allocation in blockchain networks.
Understand multidimensional fees
Noam Nisan, a computer science professor at the Hebrew University of Jerusalem, elaborates on this subject by distinguishing between the “easy” and “hard” aspects of fees. The Easy dimension does not reflect congestion within a block and can be managed through a minimal pricing strategy. In contrast, hard dimensions represent resources that can be congested and pose challenges to efficient rate management.
commission dimensions
Nisan suggests ways to effectively manage these dimensions. He suggests that long-term capacity constraints such as state size can be treated as a simple dimension using pricing dynamics similar to Ethereum’s EIP-1559. Additionally, we discuss techniques for estimating efficiency losses when hard dimensions are simplified to a single gas measure.
About the presenter
Noam Nisan is known for his contributions to the fields of computational complexity, economics, and computation. His work has received numerous prestigious awards, including the Gödel Prize and the Knuth Prize. As a Principal Researcher at Starkware, Nisan continues to impact the blockchain ecosystem with his insights.
The role of the a16z cipher
A16z crypto, a venture capital fund founded in 2013, has been actively investing in cryptocurrency and Web3 startups. The company’s interdisciplinary research lab collaborates with portfolio companies to address critical challenges in blockchain technology and contribute to the advancement of internet technology.
For more information on multi-dimensional fees and their implications, you can access the full presentation by Noam Nisan from a16z crypto’s official platform.
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