What is Stablecoin?: A Survey on Price Stabilization Mechanisms for Decentralized Payment Systems Since the first theoretical concept of blockchains was proposed, over 100 digital currencies have been issued by online platformers as cryptocurrencies and traded by online consumers mainly in emerging countries. From the perspective of online payment systems, several studies have regarded blockchains as decentralized payment systems (DPSs), enabling international payment with lower cost and higher traceability with sophisticated peertopeer protocols in contrast to other centralized systems. Despite the advantages, DPSs are not chosen by the owners of online shops due to the high volatility of cryptocurrency prices. Stablecoins are cryptocurrencies with price stabilization mechanisms to match the price of another currency with lower volatility. Our motivation is to gather various price stabilization mechanisms for the purpose of comparing them from the perspective of implementation and enterprise usage. After dividing the methods into four collateral types (fiat, crypto, commodity, and noncollateralized) and two layers (protocol and application), we show that noncollateralized stablecoin on the application layer is the simplest approach for implementation. Moreover, we discuss their connection with traditional economic studies on Hayek money, Seigniorage Share, and Tobin tax. Some current stablecoin projects are also discussed and compared. This is the first survey of stablecoins to the best of our knowledge.

Bitcoin Fee Decisions in Transaction Confirmation Queueing Games Under Limited MultiPriority Rule In the Bitcoin system, transaction fees serve not only as the fundamental economic incentive to stimulate miners, but also as an important tuner for the Bitcoin system to define the priorities in the transaction confirmation process. In this paper, we aim to study the priority rules for queueing transactions based on their associated fees, and in turn usersu0027 decisionmaking in formulating their fees in the transaction confirmation queueing game. Based on the queueing theory, we first analyzed the waiting time of users under nonpreemptive limited multipriority (LMP) rule, which is formulated to adjust usersu0027 waiting time over different priorities. We then established a gametheoretical model, and analyze usersu0027 equilibrium fee decisions. Towards the end, we conducted computational experiments to validate the theoretical analysis. Our research findings can not only help understand usersu0027 fee decisions under the LMP rule, but also offer useful managerial insights in optimizing the queueing rules of Bitcoin transactions.