A Potential Solution to Blockchain Bottlenecks

Table of Links

Abstract and I. Introduction

II. Background

III. Related Works

IV. Comparative Analysis

V. Findings and Evaluation

VI. Conclusion and References

VI. CONCLUSION

This research paper explored multiple scalability solutions both at layer-one and layer-two of the stack. The topics explored looked at how different protocols intend to increase the transaction throughput for a blockchain network and a comparative examination of these solutions was performed. The analysis was contextualised their feasibility in different use cases, and system implementations. Each scalability aspect explored was analysed regarding how they balanced security and decentralisation from the blockchain trilemma, while improving the horizontal scaling of systems.

We observed that there was a lack of scalability integrations across different layers that was attributed to horizontally scaling on both the layer-one with state sharding and and layer-two with smart contract implementations such as rollups or nested-chains. Most research identified was surrounding account model scalability, and very minimal work was done to explore smart contracts can be ran in parallel with UTXO.

We outlined a solution using making use of an extended and more expressive UTXO model, supporting paralellized UTXO state sharding, and support for smart contract dependant scaling through Zero-Knowledge rollups and nested side-chains.

A. Future Works

We intend to implement a layer one test-chain using a eUTXO state transaction model, adapting OmniLedger inspired protocols to it. Smart contract integration and testing will occur once this is complete, and the viability of various approaches and architectures will assessed.

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