  Blockchain is a technology that provides a distributed ledger that stores
previous records while maintaining consistency and security. Bitcoin is the
first and largest decentralized electronic cryptographic system that uses
blockchain technology. It faces a challenge in making all the nodes synchronize
and have the same overall view with the cost of scalability and performance. In
addition, with miners' financial interest playing a significant role in
choosing transactions from the backlog, small fee or small fee per byte value
transactions will exhibit more delays. To study the issues related to the
system's performance, we developed an $M(t)/M^N/1$ model. The backlog's arrival
follows an inhomogeneous Poison process to the system that has infinite buffer
capacity, and the service time is distributed exponentially, which removes $N$
transactions at time. Besides validating the model with measurement data, we
have used the model to study the reward distribution when miners take
transaction selection strategies like fee per byte, fee-based, and FIFO. The
analysis shows that smaller fee transactions exhibit higher waiting times, even
with increasing the block size. Moreover, the miner transaction selection
strategy impacts the final gain.

Cryptography and Security;Distributed, Parallel, and Cluster Computing