Indeed, find he Decentralized and Distributed Systems Laboratory at the Swiss Federal Institute of Technology. Furthermore, this lab releases a research paper. In their research, it proposes a new protocol. Using this new protocol, it promises the ability to be incrementally incorporate into the existing Bitcoin with backward-compatibility. The protocol’s goal is to give the network the ability to handle over one hundred 1MB block size transactions per second and attain transaction levels approximating those of Paypal when handling 4MB block sizes.
Solution To Bitcoin’s Scalability Dilemma?
Known as Byzcoin, the protocol’s capabilities are derived from its highly scalable consensus mechanism. Byzcoin utilizes tree-structures to facilitate communication which produces logarithmic communication overheads. Ultimately, this is according to Byzcoin researchers. Additionally, Proof-of-Work requirements have been done away with for blocks containing transactions in favor of having them formed by consensus group signing.
The Delayed gratification System
Byzcoin is segmented into two block types; key blocks and microblocks. Whenever a miner locates a key block, they are designated the leader, and subsequent microblocks are formed upon it through transactions. These transaction microblocks are sent down to the consensus group made up of key block co-signees in order for them to verify protocol adherence and authenticity. The point of the system is to guard against possible double-spending.
Key blocks and microblocks
While this model is somewhat similar to Bitcoin-NG’s. Indeed, the new protocol is different. Said differently, it prevents key block leader misbehavior. Moreover, they have a leader-removal mechanism. More specifically, a sixty-seven percent majority can replace a leader.
Indeed, these design characteristics allow Byzcoin to sport certain features. For example, they are instantaneous and non-reversible transactions. Furthermore, they continue to provide a solution to problems. More specifically, the solve things such as selfish mining. Additionally, it provides a solution to attack problems faced by Bitcoin made possible by its instant mining reward distribution system. Interestingly, the new protocol suggests a delay gratification method. As a result, they allocate mining rewards daily or weekly. While daily is a lot, they like it rather than instantly.
Presentation to Bitcoin Developers
Most importantly, they present a research paper at Scaling Bitcoin workshop. Furthermore, this workshop in Milan, Italy, As a result, it receives positive feedback. However, researchers caution that real deployment still calls for the resolution of several considerable engineering challenges. Whether or not a Byzcoin-based cryptocurrency is in the works remains unconfirmed, but DDS researchers plan to present the protocol first as a Bitcoin Improvement Proposal (BIP).
Yes, Scalability is a long-running issue. Ultimately, this is within the public blockchain world. Also, it is outside with a lot of research by teams. Moreover, Bitcoin Core clients and Bitcoin Unlimited identify scientific methods of tackling the issue. The ultimate solution, for now, seems to lie in some combination of off-chain and on-chain scaling, although the research paper seems to have given the industry some breathing space, for now. First of all, come up with a definitive solution. It will be for developers, they can adopt the protocol. Also, they can possibly find a way to scale up with available resources.