Biblio
A blockchain is a distributed ledger forming a distributed consensus on a history of transactions, and is the underlying technology for the Bitcoin cryptocurrency. However, its applications are far beyond the financial sector. The transaction verification process for cryptocurrencies is much slower than traditional digital transaction systems. One approach to increase transaction speed and scalability is to identify a solution that offers faster Proof of Work. In this paper, we propose a method for accelerating the process of Proof of Work based on parallel mining rather than solo mining. The goal is to ensure that no more than two or more miners put the same effort into solving a specific block. The proposed method includes a process for selection of a manager, distribution of work and a reward system. This method has been implemented in a test environment that contains all the characteristics needed to perform Proof of Work for Bitcoin and has been tested, using a variety of case scenarios, by varying the difficulty level and number of validators. Preliminary results show improvement in the scalability of Proof of Work up to 34% compared to the current system.
The celebrated Nakamoto consensus protocol [16] ushered in several new consensus applications including cryptocurrencies. A few recent works [7, 17] have analyzed important properties of blockchains, including most significantly, consistency, which is a guarantee that all honest parties output the same sequence of blocks throughout the execution of the protocol. To establish consistency, the prior analysis of Pass, Seeman and Shelat [17] required a careful counting of certain combinatorial events that was difficult to apply to variations of Nakamoto. The work of Garay, Kiayas, and Leonardas [7] provides another method of analyzing the blockchain under the simplifying assumption that the network was synchronous. The contribution of this paper is the development of a simple Markov-chain based method for analyzing consistency properties of blockchain protocols. The method includes a formal way of stating strong concentration bounds as well as easy ways to concretely compute the bounds. We use our new method to answer a number of basic questions about consistency of blockchains: Our new analysis provides a tighter guarantee on the consistency property of Nakamoto's protocol, including for parameter regimes which [17] could not consider; We analyze a family of delaying attacks first presented in [17], and extend them to other protocols; We analyze how long a participant should wait before considering a high-value transaction "confirmed"; We analyze the consistency of CliqueChain, a variation of the Chainweb [14] system; We provide the first rigorous consistency analysis of GHOST [20] and also analyze a folklore "balancing"-attack. In each case, we use our framework to experimentally analyze the consensus bounds for various network delay parameters and adversarial computing percentages. We hope our techniques enable authors of future blockchain proposals to provide a more rigorous analysis of their schemes.