Optimizing Gas Fees for Blockchain Transactions

To optimize gas fees for such a project, one must consider both the variable and fixed costs associated with each transaction, as well as the gas cost as a function of data size. Given that gas fees on blockchains like Ethereum are based on the computational effort required to process a transaction, as well as storage costs, this is a pertinent concern.

1. Defining Variables:

• gb: Base gas cost for a transaction without any data.

• gi: Gas cost per image.

• n: Number of images in a transaction.

2. Metrics:

Total Gas Cost for a Transaction (TGC):

• TGC(n) = gb + gi × n

Average Gas Cost per Image (AGCI):

• AGCI(n) = TGC(n) / n

3. Key Performance Indicators (KPIs):

Data Efficiency (DE):

• Ratio of the number of images in a batch to the total gas cost for that batch. Higher values indicate better efficiency.

• DE(n) = n / TGC(n)

Cost Efficiency (CE):

• Inverse of the average gas cost per image. Higher values indicate better cost efficiency.

• CE(n) = 1 / AGCI(n)

4. Objective:

To find the optimal number of images n* that maximizes DE and CE while staying within acceptable transaction processing times and blockchain limitations.

5. Steps to Compute the Optimal Batch Size:

1. Measure the base gas cost gb for a transaction without any images.

2. Measure the additional gas cost gi for adding a single image to a transaction.

3. Compute TGC for varying batch sizes n.

4. Calculate AGCI for each batch size.

5. Evaluate DE and CE for different batch sizes.

6. Choose the batch size n* that maximizes DE and CE, while ensuring that transactions don't exceed the block gas limit and are processed within acceptable time frames.

Practical Considerations:

• Blockchain Constraints: Different blockchains have different block gas limits. It's crucial to ensure that the total gas cost of a transaction doesn't exceed this limit.

• Processing Time: Larger batches could mean longer processing times. Depending on the urgency of the medical data, this could be a limiting factor.

• Cost Volatility: Gas prices can be volatile, so it might be beneficial to consider dynamic adjustments based on the current gas price or even off-chain aggregation before on-chain commitment.

To put the theory into practice, one could use simulations or past transaction data to measure gb and gi, and then use the formulas to compute the KPIs for different batch sizes. This will provide insights into the trade-offs between gas cost and data storage efficiency, enabling an informed decision on the optimal batch size.

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