A GENERALIZED AGENT BASED FRAMEWORK FOR MODELING A BLOCKCHAIN SYSTEM

Abstract

We describe an agent-based conceptual model of a Blockchain system. Blockchain technology enables distributed, encrypted and secure logging of digital transactions in an add-only ledger record. We model and simulate an expanding Blockchain network, describing the participating agents, the transactions, and the verified add-only public ledger record achieving decentralized consensus. All of the essential details of the functioning of the Blockchain including the behaviors and decisions made by agents deciding to join as well as participate in the market are detailed in the prototype model. The aim of this paper is to illustrate the essential elements and functioning of a Blockchain system, implement a generalized simulation and a measure of Blockchain efficiency from an agent choice and energy cost perspective. Our preliminary results indicate that mining choice (transaction block to verify) coupled with proof of work incentives are critical for energy efficiency.