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. REFERENCES [1] J. Dattani and H. Sheth, “Overview of blockchain technology.” Asian Journal of Convergence in Technology, pp. 123 – 140., 2019. [2] Q. Zhou, H. Huang, Z. Zheng, and J. Bian, “Solutions to Scalability of Blockchain: A Survey,” IEEE Access, vol. 8, pp. 16 440–16 455,Jan 2020. [3] W. T. Jiacun Wang, Formal Methods in Computer Science. Andover, England, UK: Taylor & Francis, Jul 2019. [4] L. N. Nguyen, T. D. T. Nguyen, T. N. Dinh, and M. T. Thai, “OptChain: Optimal Transactions Placement for Scalable Blockchain Sharding,” in 2019 IEEE 39th International Conference on Distributed Computing Systems (ICDCS). IEEE, Jul 2019, pp. 525–535. [5] L. Brunjes and M. Gabbay, “UTxO- vs account-based smart contract blockchain programming paradigms,” Mar 2020. [Online]. Available: https://www.semanticscholar.org/ paper/UTxO-vs-account-based-smart-contract-blockchain-Br%C3% BCnjes-Gabbay/ea415af5a99f27866d4a74601187d10a538fea50 [6] M. M. Chakravarty and J. Chapman, “The Extended UTXO Model,” Feb 2020, [Online; accessed 20. Jan. 2022]. [Online]. Available: https://iohk.io/en/research/library/papers/the-extended-utxo-model [7] M. Bellare, S. Halevi, A. Sahai, and S. Vadhan, “Many-to-one trapdoor functions and their relation to public-key cryptosystems,” in Advances in Cryptology - CRYPTO ’98. Berlin, Germany: Springer, May 2006, pp. 283–298. [8] A. M. Antonopoulos and G. Wood, Mastering Ethereum. Sebastopol, CA, USA: O’Reilly Media, Inc., Nov 2018. [Online]. Available: https://www.oreilly.com/library/view/mastering-ethereum/ 9781491971932/ch04.html [9] V. Buterin, “Ethereum whitepaper,” ethereum.org, 2021. [Online]. Available: https://ethereum.org/en/whitepaper [10] F. Santini, S. Bistarelli, I. Mercanti, and P. Santancini, “End-to-End Voting with Non-Permissioned and Permissioned Ledgers,” Journal of Grid Computing, vol. 17, no. 3, Mar 2019. [11] S. Nakamoto, “Bitcoin: A peer-to-peer electronic cash system,” 2008. [Online]. Available: https://www.ussc.gov/sites/default/files/ pdf/training/annual-national-training-seminar/2018/Emerging Tech Bitcoin Crypto.pdf [12] J. Lee, “Dappguard : Active monitoring and defense for solidity smart contracts,” 2017. [Online]. Available: http://courses.csail.mit.edu/6.857/ 2017/project/23.pdf [13] C. F. Tavares, B. and A. Restivo, “A survey on blockchain technologies and research.” J. Inf,, pp. 118–128, 2019. [14] R. D. L. S. Buterin, V. and G. Piliouras, “Incentives in Ethereum’s hybrid Casper protocol.” International Journal of Network Management, 30(5), p. e2098, 2020. [15] W. L. O. S. A. M. Tseng, L. and J. Othman, “Blockchain for managing heterogeneous internet of things: A perspective architecture.” IEEE network, 34(1),, pp. 16–23., 2020. [16] S. M. N. C. M. K. Dhumwad, S. and S. Prabhu, “A peer to peer money transfer using SHA256 and Merkle tree.” In 2017 23RD Annual International Conference in Advanced Computing and Communications (ADCOM), pp. 40 – 43., 2017. [17] J. Frankenfield, “What is a merkle root ?” Aug 2021, [Online; accessed 29. Nov. 2021]. [Online]. Available: https://www.investopedia.com/ terms/m/merkle-root-cryptocurrency.asp [18] N. V. Z. C. B. K. G. S. Luu, L. and P. Saxena, “A secure sharding protocol for open blockchains,” 2016 ACM SIGSAC Conference on Computer and Communications Security, pp. 17–30, 2016. [19] V. J. P. D. Goldberg, S. and L. Reyzin, “Verifiable random functions (VRFs)..” ., p. ., 2018. [20] E. Kokoris-Kogias, P. Jovanovic, L. Gasser, N. Gailly, and E. Syta, “OmniLedger: A Secure, Scale-Out, Decentralised Ledger via Sharding,” in 2018 IEEE Symposium on Security and Privacy (SP). IEEE, May 2018, pp. 583–598. [21] Z. S. X. G. G. Y. L. Y. X. J. Xi, J. and X. Zhang, “A Comprehensive Survey on Sharding in Blockchains. Mobile Information Systems,” Mobile Information Systems, 2021., 2021. [22] Z. Dong, L., “The Zilliqa Project: A Secure, Scalable Blockchain Platform.” ., p. ., 2018. [23] K. Y. Kim, S. and S. Cho, “A survey of scalability solutions on blockchain.” In 2018 International Conference on Information and Communication Technology Convergence (ICTC), pp. 1204–1207., 2018. [24] C. K. P. R. Z. Q. D. A. Singh, A. and K. Choo, “Sidechain technologies in blockchain networks: An examination and state-of-the-art review.” Journal of Network and Computer Applications,, p. 102471., 2020. [25] J. Poon and V. Buterin, “Plasma: Scalable autonomous smart contracts,” plasma.io, 2017. [Online]. Available: http://plasma.io/plasma.pdf [26] C. Sguanci, R. Spatafora, and A. M. Vergani, “Layer 2 Blockchain Scaling: a Survey,” arXiv, Jul 2021. [Online]. Available: https: //arxiv.org/abs/2107.10881v1 [27] “An Incomplete Guide to Rollups,” Jan 2021, [Online; accessed 20. Jan. 2022]. [Online]. Available: https://vitalik.ca/general/2021/01/05/ rollup.html [28] T. Schaffner, “Scaling public blockchains — a comprehensive analysis of optimistic and zero-knowledge rollups,” 2021. [Online]. Available: https://wwz.unibas.ch/fileadmin/user upload/wwz/00 Professuren/ Schaer DLTFintech/Lehre/Tobias Schaffner Masterthesis.pdf [29] F. Bruschi, M. Tumiati, V. Rana, M. Bianchi, and D. Sciuto, “A scalable decentralized system for fair token distribution and seamless users onboarding,” Blockchain: Research and Applications , p. 100031, Oct 2021. [30] “Optimism Docs | Optimism Docs,” Jan 2022, [Online; accessed 20. Jan. 2022]. [Online]. Available: https://community.optimism.io [31] “Arbitrum Developer Quickstart · Offchain Labs Dev Center,” Jan 2022, [Online; accessed 20. Jan. 2022]. [Online]. Available: https://developer.offchainlabs.com/docs/developer quickstart [32] “Introduction to zkSync for Developers | zkSync: secure, scalable crypto payments,” Jan 2022, [Online; accessed 20. Jan. 2022]. [Online]. Available: https://zksync.io/dev [33] “StarkEx Introduction,” Jan 2022, [Online; accessed 20. Jan. 2022]. [Online]. Available: https://docs.starkware.co/starkex-v4 [34] S. Johnson, P. Robinson, and J. Brainard, “Sidechains and interoperability,” arXiv , Mar 2019. [Online]. Available: https://arxiv.org/abs/1903.04077v2 [35] D. T. L. D. C. E. L. Q. Dang, H. and B. Ooi, “Towards scaling blockchain systems via sharding.” In Proceedings of the 2019 international conference on management of data, pp. 123 – 140., 2019. [36] H. A. Hafid, A. and M. Samih, “New mathematical model to analyze security of sharding-based blockchain protocols,” IEEE Access. , pp. 185 447–185 457., 2019. [37] F. Sanchez, “Cardano’s Extended UTXO accounting model – built to support multi-assets and smart contracts (part 2) - IOHK Blog,” Mar 2021, [Online; accessed 21. Jan. 2022]. [Online]. Available: https://iohk.io/en/blog/posts/2021/03/12/ cardanos-extended-utxo-accounting-model-part-2 Authors:
(1) Cayo Fletcher-Smith, Bournemouth University;
(2) Frazer Chard. This paper is available on arxiv under CC0 1.0 DEED license. Table of Links Abstract and I. Introduction Abstract and I. Introduction II. Background II. Background III. Related Works III. Related Works IV. Comparative Analysis IV. Comparative Analysis V. Findings and Evaluation V. Findings and Evaluation VI. Conclusion and References 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 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. REFERENCES [1] J. Dattani and H. Sheth, “Overview of blockchain technology.” Asian Journal of Convergence in Technology, pp. 123 – 140., 2019. [2] Q. Zhou, H. Huang, Z. Zheng, and J. Bian, “Solutions to Scalability of Blockchain: A Survey,” IEEE Access, vol. 8, pp. 16 440–16 455,Jan 2020. [3] W. T. Jiacun Wang, Formal Methods in Computer Science. Andover, England, UK: Taylor & Francis, Jul 2019. [4] L. N. Nguyen, T. D. T. Nguyen, T. N. Dinh, and M. T. Thai, “OptChain: Optimal Transactions Placement for Scalable Blockchain Sharding,” in 2019 IEEE 39th International Conference on Distributed Computing Systems (ICDCS). IEEE, Jul 2019, pp. 525–535. [5] L. Brunjes and M. Gabbay, “UTxO- vs account-based smart contract blockchain programming paradigms,” Mar 2020. [Online]. Available: https://www.semanticscholar.org/ paper/UTxO-vs-account-based-smart-contract-blockchain-Br%C3% BCnjes-Gabbay/ea415af5a99f27866d4a74601187d10a538fea50 [6] M. M. Chakravarty and J. Chapman, “The Extended UTXO Model,” Feb 2020, [Online; accessed 20. Jan. 2022]. [Online]. Available: https://iohk.io/en/research/library/papers/the-extended-utxo-model [7] M. Bellare, S. Halevi, A. Sahai, and S. Vadhan, “Many-to-one trapdoor functions and their relation to public-key cryptosystems,” in Advances in Cryptology - CRYPTO ’98. Berlin, Germany: Springer, May 2006, pp. 283–298. [8] A. M. Antonopoulos and G. Wood, Mastering Ethereum. Sebastopol, CA, USA: O’Reilly Media, Inc., Nov 2018. [Online]. Available: https://www.oreilly.com/library/view/mastering-ethereum/ 9781491971932/ch04.html [9] V. Buterin, “Ethereum whitepaper,” ethereum.org, 2021. [Online]. Available: https://ethereum.org/en/whitepaper [10] F. Santini, S. Bistarelli, I. Mercanti, and P. Santancini, “End-to-End Voting with Non-Permissioned and Permissioned Ledgers,” Journal of Grid Computing, vol. 17, no. 3, Mar 2019. [11] S. Nakamoto, “Bitcoin: A peer-to-peer electronic cash system,” 2008. [Online]. Available: https://www.ussc.gov/sites/default/files/ pdf/training/annual-national-training-seminar/2018/Emerging Tech Bitcoin Crypto.pdf [12] J. Lee, “Dappguard : Active monitoring and defense for solidity smart contracts,” 2017. [Online]. Available: http://courses.csail.mit.edu/6.857/ 2017/project/23.pdf [13] C. F. Tavares, B. and A. Restivo, “A survey on blockchain technologies and research.” J. Inf,, pp. 118–128, 2019. [14] R. D. L. S. Buterin, V. and G. Piliouras, “Incentives in Ethereum’s hybrid Casper protocol.” International Journal of Network Management, 30(5), p. e2098, 2020. [15] W. L. O. S. A. M. Tseng, L. and J. Othman, “Blockchain for managing heterogeneous internet of things: A perspective architecture.” IEEE network, 34(1),, pp. 16–23., 2020. [16] S. M. N. C. M. K. Dhumwad, S. and S. Prabhu, “A peer to peer money transfer using SHA256 and Merkle tree.” In 2017 23RD Annual International Conference in Advanced Computing and Communications (ADCOM), pp. 40 – 43., 2017. [17] J. Frankenfield, “What is a merkle root ?” Aug 2021, [Online; accessed 29. Nov. 2021]. [Online]. Available: https://www.investopedia.com/ terms/m/merkle-root-cryptocurrency.asp [18] N. V. Z. C. B. K. G. S. Luu, L. and P. Saxena, “A secure sharding protocol for open blockchains,” 2016 ACM SIGSAC Conference on Computer and Communications Security, pp. 17–30, 2016. [19] V. J. P. D. Goldberg, S. and L. Reyzin, “Verifiable random functions (VRFs)..” ., p. ., 2018. [20] E. Kokoris-Kogias, P. Jovanovic, L. Gasser, N. Gailly, and E. Syta, “OmniLedger: A Secure, Scale-Out, Decentralised Ledger via Sharding,” in 2018 IEEE Symposium on Security and Privacy (SP). IEEE, May 2018, pp. 583–598. [21] Z. S. X. G. G. Y. L. Y. X. J. Xi, J. and X. Zhang, “A Comprehensive Survey on Sharding in Blockchains. Mobile Information Systems,” Mobile Information Systems, 2021., 2021. [22] Z. Dong, L., “The Zilliqa Project: A Secure, Scalable Blockchain Platform.” ., p. ., 2018. [23] K. Y. Kim, S. and S. Cho, “A survey of scalability solutions on blockchain.” In 2018 International Conference on Information and Communication Technology Convergence (ICTC), pp. 1204–1207., 2018. [24] C. K. P. R. Z. Q. D. A. Singh, A. and K. Choo, “Sidechain technologies in blockchain networks: An examination and state-of-the-art review.” Journal of Network and Computer Applications,, p. 102471., 2020. [25] J. Poon and V. Buterin, “Plasma: Scalable autonomous smart contracts,” plasma.io, 2017. [Online]. Available: http://plasma.io/plasma.pdf [26] C. Sguanci, R. Spatafora, and A. M. Vergani, “Layer 2 Blockchain Scaling: a Survey,” arXiv, Jul 2021. [Online]. Available: https: //arxiv.org/abs/2107.10881v1 [27] “An Incomplete Guide to Rollups,” Jan 2021, [Online; accessed 20. Jan. 2022]. [Online]. Available: https://vitalik.ca/general/2021/01/05/ rollup.html [28] T. Schaffner, “Scaling public blockchains — a comprehensive analysis of optimistic and zero-knowledge rollups,” 2021. [Online]. Available: https://wwz.unibas.ch/fileadmin/user upload/wwz/00 Professuren/ Schaer DLTFintech/Lehre/Tobias Schaffner Masterthesis.pdf [29] F. Bruschi, M. Tumiati, V. Rana, M. Bianchi, and D. Sciuto, “A scalable decentralized system for fair token distribution and seamless users onboarding,” Blockchain: Research and Applications , p. 100031, Oct 2021. [30] “Optimism Docs | Optimism Docs,” Jan 2022, [Online; accessed 20. Jan. 2022]. [Online]. Available: https://community.optimism.io [31] “Arbitrum Developer Quickstart · Offchain Labs Dev Center,” Jan 2022, [Online; accessed 20. Jan. 2022]. [Online]. Available: https://developer.offchainlabs.com/docs/developer quickstart [32] “Introduction to zkSync for Developers | zkSync: secure, scalable crypto payments,” Jan 2022, [Online; accessed 20. Jan. 2022]. [Online]. Available: https://zksync.io/dev [33] “StarkEx Introduction,” Jan 2022, [Online; accessed 20. Jan. 2022]. [Online]. Available: https://docs.starkware.co/starkex-v4 [34] S. Johnson, P. Robinson, and J. Brainard, “Sidechains and interoperability,” arXiv , Mar 2019. [Online]. Available: https://arxiv.org/abs/1903.04077v2 [35] D. T. L. D. C. E. L. Q. Dang, H. and B. Ooi, “Towards scaling blockchain systems via sharding.” In Proceedings of the 2019 international conference on management of data, pp. 123 – 140., 2019. [36] H. A. Hafid, A. and M. Samih, “New mathematical model to analyze security of sharding-based blockchain protocols,” IEEE Access. , pp. 185 447–185 457., 2019. [37] F. Sanchez, “Cardano’s Extended UTXO accounting model – built to support multi-assets and smart contracts (part 2) - IOHK Blog,” Mar 2021, [Online; accessed 21. Jan. 2022]. [Online]. Available: https://iohk.io/en/blog/posts/2021/03/12/ cardanos-extended-utxo-accounting-model-part-2 Authors: (1) Cayo Fletcher-Smith, Bournemouth University; (2) Frazer Chard. Authors: Authors: (1) Cayo Fletcher-Smith, Bournemouth University; (2) Frazer Chard. This paper is available on arxiv under CC0 1.0 DEED license. This paper is available on arxiv under CC0 1.0 DEED license. available on arxiv

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