Transaction Propagation on Permissionless Blockchains: Incentive and Routing Mechanisms

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32 Citations (Scopus)


Existing permissionless blockchain solutions rely on peer-to-peer propagation mechanisms, where nodes in a network transfer transaction they received to their neighbors. Unfortunately, there is no explicit incentive for such transaction propagation. Therefore, existing propagation mechanisms will not be sustainable in a fully decentralized blockchain with rational nodes. In this work, we formally define the problem of incentivizing nodes for transaction propagation. We propose an incentive mechanism where each node involved in the propagation of a transaction receives a share of the transaction fee. We also show that our proposal is Sybil-proof. Furthermore, we combine the incentive mechanism with smart routing to reduce the communication and storage costs at the same time. The proposed routing mechanism reduces the redundant transaction propagation from the size of the network to a factor of average shortest path length. The routing mechanism is built upon a specific type of consensus protocol where the round leader who creates the transaction block is known in advance. Note that our routing mechanism is a generic one and can be adopted independently from the incentive mechanism.
Original languageEnglish
Title of host publicationProceedings - 2018 Crypto Valley Conference on Blockchain Technology, CVCBT 2018
Place of PublicationLos Alamitos, CA
Number of pages11
ISBN (Electronic)978-1-5386-7204-4
Publication statusPublished - 2018
EventCrypto Valley Conference on Blockchain Technology 2018, CVCBT 2018 - Zug Casino, Zug, Switzerland
Duration: 20 Jun 201822 Jun 2018
Conference number: 1


ConferenceCrypto Valley Conference on Blockchain Technology 2018, CVCBT 2018
Abbreviated titleCVCBT 2018
Internet address


  • Blockchain
  • transaction propagation
  • incentive
  • routing


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