Authors:
(1) Cayo Fletcher-Smith, Bournemouth University;
(2) Frazer Chard. Table of Links Abstract and I. Introduction II. Background III. Related Works IV. Comparative Analysis V. Findings and Evaluation VI. Conclusion and References Abstract—This research critically analyses blockchain scaling solutions based on their ability to realistically balance properties of the blockchain trilemma. We’ve concluded this research by outlining a gap in the current body of literature, and implementation of scalability solutions. An extended-UTXO transaction model is proposed to overcome challenges associated with implementing both layer-one and layer-two scaling solutions in a blockchain system. The examination of industry approaches is used to justify this direction, and puts forth a basis for future work. I. INTRODUCTION Blockchain technology was first introduced by Satoshi Nakamoto in the Bitcoin whitepaper, in which they proposed a distributed ledger of transactions stored across a peerto-peer (p2p) network of nodes. Transactions facilitate the transmission of digital assets over the blockchain network and store a record of that transaction in blocks using cryptographic trust to verify data validity, circumventing the need for a trusted central authority. Each block can be visualised as a single page, while the entire blockchain would be a full book [1]. Blockchain use has been growing exponentially since Bitcoin’s rise in 2013, and Ethereum’s in 2017. Smart contract projects like Solana and Cardano are pushing the boundaries encompassed in Web2, shifting design away from centralised infrastructure, by providing disruptive solutions to business sectors globally. The magnitude of this shift in thinking has accelerated a domain of decentralized financial services, applications and industry solutions due to the inherent benefits blockchain technology has across various use cases. Despite significant advancements since the days of primitive input output ledger systems like Bitcoin, the industry still struggles to correctly balance the coexistence of features fundamental to a comprehensive blockchain solution. A. Blockchain Trillema Three fundamental properties of blockchain technology: decentralisation, security and scalability are regularly observed in research to have a challenging relationship. Generally to achieve two properties in-full projects sacrifice the third in some form. Zhou et al exemplifies the trilemma by explaining that, an introduction of centralised coordination can increase transaction speed by reducing computation costs, resulting in the sacrifice of complete decentralisation [2]. B. Research Objectives In this research, we will be exploring recent technological developments in scaling at different layers of the blockchain stack and perform a comparative analysis to review how effectively the blockchain trilemma can be balanced with these solutions. Observations will be made throughout about the feasibility of certain scaling solutions occurring harmoniously with the layer-one transaction models implemented across an array of projects. The necessity and support for smart contracts will be demonstrated where appropriate, both in transactional model support and automated scalability requirements. This paper is available on arxiv under CC0 1.0 DEED license. Authors: (1) Cayo Fletcher-Smith, Bournemouth University; (2) Frazer Chard. Authors: Authors: (1) Cayo Fletcher-Smith, Bournemouth University; (2) Frazer Chard. 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 Abstract—This research critically analyses blockchain scaling solutions based on their ability to realistically balance properties of the blockchain trilemma. We’ve concluded this research by outlining a gap in the current body of literature, and implementation of scalability solutions. An extended-UTXO transaction model is proposed to overcome challenges associated with implementing both layer-one and layer-two scaling solutions in a blockchain system. The examination of industry approaches is used to justify this direction, and puts forth a basis for future work. Abstract —This research critically analyses blockchain scaling solutions based on their ability to realistically balance properties of the blockchain trilemma. We’ve concluded this research by outlining a gap in the current body of literature, and implementation of scalability solutions. An extended-UTXO transaction model is proposed to overcome challenges associated with implementing both layer-one and layer-two scaling solutions in a blockchain system. The examination of industry approaches is used to justify this direction, and puts forth a basis for future work. Abstract I. INTRODUCTION Blockchain technology was first introduced by Satoshi Nakamoto in the Bitcoin whitepaper, in which they proposed a distributed ledger of transactions stored across a peerto-peer (p2p) network of nodes. Transactions facilitate the transmission of digital assets over the blockchain network and store a record of that transaction in blocks using cryptographic trust to verify data validity, circumventing the need for a trusted central authority. Each block can be visualised as a single page, while the entire blockchain would be a full book [1]. Blockchain use has been growing exponentially since Bitcoin’s rise in 2013, and Ethereum’s in 2017. Smart contract projects like Solana and Cardano are pushing the boundaries encompassed in Web2, shifting design away from centralised infrastructure, by providing disruptive solutions to business sectors globally. The magnitude of this shift in thinking has accelerated a domain of decentralized financial services, applications and industry solutions due to the inherent benefits blockchain technology has across various use cases. Despite significant advancements since the days of primitive input output ledger systems like Bitcoin, the industry still struggles to correctly balance the coexistence of features fundamental to a comprehensive blockchain solution. A. Blockchain Trillema A. Blockchain Trillema Three fundamental properties of blockchain technology: decentralisation, security and scalability are regularly observed in research to have a challenging relationship. Generally to achieve two properties in-full projects sacrifice the third in some form. Zhou et al exemplifies the trilemma by explaining that, an introduction of centralised coordination can increase transaction speed by reducing computation costs, resulting in the sacrifice of complete decentralisation [2]. B. Research Objectives B. Research Objectives In this research, we will be exploring recent technological developments in scaling at different layers of the blockchain stack and perform a comparative analysis to review how effectively the blockchain trilemma can be balanced with these solutions. Observations will be made throughout about the feasibility of certain scaling solutions occurring harmoniously with the layer-one transaction models implemented across an array of projects. The necessity and support for smart contracts will be demonstrated where appropriate, both in transactional model support and automated scalability requirements. 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

Part of HackerNoon's growing list of open-source research papers, promoting free access to academic material.

Why the Blockchain Struggles to Grow and How to Fix It

About Author

Comments

TOPICS

THIS ARTICLE WAS FEATURED IN

Related Stories

Untitled Story

A Novel Pipeline for Classifying and Repairing Smart Contracts at Scale

A Comprehensive Review of the 11 Most Promising Scalability Solutions in 2023

A Proposal to Solve Blockchain Scalability

Achieving Blockchain Scalability with Sparse Merkle Trees and Bloom Filters

Designing Fair and Efficient Blockchain Games: Transaction Fee Comparison

A Novel Pipeline for Classifying and Repairing Smart Contracts at Scale

A Comprehensive Review of the 11 Most Promising Scalability Solutions in 2023

A Proposal to Solve Blockchain Scalability

Achieving Blockchain Scalability with Sparse Merkle Trees and Bloom Filters

Designing Fair and Efficient Blockchain Games: Transaction Fee Comparison

Light-Mode

Classic

Newspaper

Dark-Mode

Neon Noir

Minty

HN StartUps