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An Efficient Dynamic Transaction Storage Mechanism for Sustainable High Throughput Bitcoin

Xiongfei Zhao, Gerui Zhang, Yain-Whar Si

TL;DR

This paper tackles Bitcoin’s impending shift to transaction-fee-based incentives by proposing Efficient Dynamic Transaction Storage (EDTS), a mechanism that compresses block content with a Cuckoo Filter and dynamically allocates transactions via Dynamic Transaction Storage (DTS) strategies. The authors couple EDTS with a multi-objective optimization (U-NSGA-III) to maximize throughput while stabilizing block reward volatility, achieving up to 325.3 TPS under a 1 MB block. The approach also supports prioritized transmission of high-fee transactions and aims to prevent deviant mining behaviors in the fee regime, outperforming on-chain scaling solutions like Bitcoin NG in scalability while maintaining sustainability. The work presents extensive simulations showing robust throughput gains within historical volatility ranges and discusses integration with off-chain techniques for further gains and resilience.

Abstract

As coin-based rewards dwindle, transaction fees play an important role as mining incentives in Bitcoin. In this paper, we propose a novel mechanism called Efficient Dynamic Transaction Storage (EDTS) for dynamically allocating transactions among blocks to achieve efficient storage utilization. By leveraging a combination of Cuckoo Filter and Dynamic Transaction Storage (DTS) strategies, EDTS is able to improve the scalability while remaining sustainable even after the Bitcoin enters a transaction-fee regime. In addition to preventing deviant mining behaviors under the transaction-fee regime, EDTS can also provide differentiated transmission priorities based on transaction fees while allowing the investors to engage in pledging more transaction fees. In EDTS, we applied the multi-objective optimization algorithm U-NSGA-III to find the best DTS strategy and its corresponding attributes. Experimental results show that the EDTS mechanism together with the optimized DTS strategy can achieve a throughput of 325.3 TPS. The experimental results reveal that the scalability improvement of EDTS is superior to the performance of Bitcoin NG, which is the best known on-chain scaling solution, while maintaining the sustainability under the transaction-fee regime.

An Efficient Dynamic Transaction Storage Mechanism for Sustainable High Throughput Bitcoin

TL;DR

This paper tackles Bitcoin’s impending shift to transaction-fee-based incentives by proposing Efficient Dynamic Transaction Storage (EDTS), a mechanism that compresses block content with a Cuckoo Filter and dynamically allocates transactions via Dynamic Transaction Storage (DTS) strategies. The authors couple EDTS with a multi-objective optimization (U-NSGA-III) to maximize throughput while stabilizing block reward volatility, achieving up to 325.3 TPS under a 1 MB block. The approach also supports prioritized transmission of high-fee transactions and aims to prevent deviant mining behaviors in the fee regime, outperforming on-chain scaling solutions like Bitcoin NG in scalability while maintaining sustainability. The work presents extensive simulations showing robust throughput gains within historical volatility ranges and discusses integration with off-chain techniques for further gains and resilience.

Abstract

As coin-based rewards dwindle, transaction fees play an important role as mining incentives in Bitcoin. In this paper, we propose a novel mechanism called Efficient Dynamic Transaction Storage (EDTS) for dynamically allocating transactions among blocks to achieve efficient storage utilization. By leveraging a combination of Cuckoo Filter and Dynamic Transaction Storage (DTS) strategies, EDTS is able to improve the scalability while remaining sustainable even after the Bitcoin enters a transaction-fee regime. In addition to preventing deviant mining behaviors under the transaction-fee regime, EDTS can also provide differentiated transmission priorities based on transaction fees while allowing the investors to engage in pledging more transaction fees. In EDTS, we applied the multi-objective optimization algorithm U-NSGA-III to find the best DTS strategy and its corresponding attributes. Experimental results show that the EDTS mechanism together with the optimized DTS strategy can achieve a throughput of 325.3 TPS. The experimental results reveal that the scalability improvement of EDTS is superior to the performance of Bitcoin NG, which is the best known on-chain scaling solution, while maintaining the sustainability under the transaction-fee regime.
Paper Structure (23 sections, 6 equations, 15 figures, 6 tables, 2 algorithms)

This paper contains 23 sections, 6 equations, 15 figures, 6 tables, 2 algorithms.

Table of Contents

  1. Introduction
  2. Related Work
  3. Preliminaries
  4. Instability of Bitcoin
  5. Dynamic Transaction Storage (DTS) Strategies
  6. Cuckoo Filter
  7. Overview of proposed Efficient Dynamic Transaction Storage (EDTS) mechanism
  8. Existing transaction incorporation process
  9. Transaction incorporation based on proposed EDTS mechanism
  10. Sender
  11. Receiver
  12. Experiments
  13. Experiment Settings
  14. Attributes Considered in the Experiments
  15. Benchmarks
  16. ...and 8 more sections

Figures (15)

  • Figure 1: Undercutting Strategic Deviation
  • Figure 2: Illustration of the Dynamic Transaction Storage (DTS) strategies transaction incorporation.
  • Figure 3: Illustration of the Blockchain network which is composed of nodes and an example mempool with unconfirmed transactions for each node.
  • Figure 4: Existing Bitcoin network mining process
  • Figure 5: Block and transaction data structure of current Bitcoin network
  • ...and 10 more figures