ShardedScale: Empowering Blockchain Transaction Scalability with Scalable Block Consensus

Abstract

Blockchain is a decentralized digital ledger technology that offers transparency, security, and immutability by recording and verifying transactions across multiple computers. However, it faces limitations such as scalability issues, high energy consumption, slow transaction validation, expanding storage requirements. Understanding these limitations is crucial for evaluating blockchain's suitability for specific use cases and finding solutions to overcome these challenges. Recognizing these limitations is imperative for assessing blockchain's applicability and devising solutions. This paper introduces a hybrid mechanism, ShardedScale, designed to enhance scalability, throughput, and system performance while mitigating time, gas, and ether consumption. The proposed ShardedScale approach combines various techniques including Proof of Work (PoW), Dynamic On-demand Proof of Stake (DPOS), Inter Planetary File System (IPFS), and sharding. ShardedScale achieved a remarkable 40% reduction in transaction confirmation times, a substantial 60% improvement in throughput, and demonstrated cost-effectiveness with a 30% reduction in gas price consumption and a 25% decrease in ethers consumption. These findings signify a significant step towards addressing challenges faced by traditional blockchain systems, providing valuable insights for future designs in blockchain technology.