Optimal Transaction Throughput in Proof-of-Work Based Blockchain Networks

Abstract

As of today, Bitcoin suffers with restrictive transaction throughput of 3−7 transactions per sec and the transaction confirmation takes several min as bitcoin blockchain was designed with a block creation time of 10 min and each block is restricted with less blocksize for fast transmission. In this paper, we obtained the optimal transaction throughput for a Proof-of-Work (PoW) based longest chain rule blockchain network (called bitcoin protocol). This is done by modeling the delay diameter (D) and double spending attack in a Erd o ¨ s-R e ´ nyi random network topology as constraints. Through numerical results, it is shown that the throughput can be significatly improved without compromising the fairness of the network.

Keywords

• block creation rate
• delay diameter
• probability of successful double-spend
• throughput
• rewards