Abstract
This paper aims to examine the possibility of using blockchain resource allocation mechanisms in controlling urban road traffic congestion. In modern Intelligent Transport Systems (ITS) systems, there exists a problem of resource scarcity, where existing fixed price and first-price auction methods have demonstrated inefficiencies due to high price variability and lack of predictability. A new algorithmic framework for urban road traffic congestion pricing is proposed, inspired by the Ethereum EIP-1559 protocol. A digital twin of road capacity is created as a block space on a blockchain network, with a base fee adjustment mechanism designed to support a target utilization. A normalization process using median demand values and a price stability mechanism, referred to as Price Freeze, is incorporated for urban logistics applications. Simulation results using historical Ethereum values show that the modified algorithm maintains a stable traffic flow despite high fluctuations in traffic demand, resulting in a state of “bounded instability.”
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