# Skimping on Gas – Reducing Ethereum Transaction Costs in a Blockchain Electricity Market Application

**Published:** 2019-01-14  
**Categories:** Academic Publications, Publications  
**URL:** https://www.etla.fi/en/publications/skimping-on-gas-reducing-ethereum-transaction-costs-in-a-blockchain-electricity-market-application/

#### Abstract

In recent years, information systems have not been largely evaluated by their operating costs, but mainly by their strategic benefit and competitive advantage. As blockchain-based decentralized applications become more commonplace, representing a shift towards fully consumption-based distributed computing, a new mode of thinking is required of developers, with meticulous attention to computational resource efficiency. This study improves on a blockchain application designed for conducting microtransactions of electricity in a nanogrid environment. By applying the design science research methodology, we improve the efficiency of the application’s smart contract by 11%, with further improvement opportunities identified. Despite the results, we find the efficiency remains inadequate for public Ethereum deployment. From the optimization process, we extrapolate a set of general guidelines for optimizing the efficiency of Ethereum smart contracts in any application.

*Proceedings of 52nd Hawaii International Conference on System Sciences (HICSS 2019).*

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## Additional Information

**Kirjoittajat:** Hukkinen, Taneli - Mattila, Juri - Seppälä, Timo - Smolander, Kari - Gooden, Tobias

**Kansikuva:** No

**Lataa Pdf:** No

**Key Words:** The Transformational Impact of Blockchain, Organizational Systems and Technology, Blockchain, Design science, Ethereum, Nanogrid, Smart contract

**Paivays:** 14.01.2019

**Sivuja:** 10

**Kieli:** en

**Sarja:** Other articles

https://www.etla.fi/wp-content/uploads/Skimping-on-Gas-HICSS-52.pdf

https://scholarspace.manoa.hawaii.edu/handle/10125/60123

https://scholarspace.manoa.hawaii.edu/bitstream/10125/60123/0683.pdf

**Saatavuus:** 2

**Publication Research:** No