In previous posts, we already explained the definition of blockchain technology and its performance and status. We know that blockchain is a public ledger that verifies and displays all transactions on a decentralized network, and digital currency is major use of blockchain. Miners use powerful computers to solve algorithms on the crypto network and get rewarded with tokens. As a decentralised way to issue and distribute new cryptocurrency, it also protects a blockchain network from malicious activity. See also: Best Cryptocurrency to Mine in 2019 by MintDice
In this article, we will continue to talk about the blockchain technology including its performance issues and possible optimisation directions.
What are the difficulties of blockchain’s performance?
First, the difficulty of centralisation and decentralisation.
People think that the larger the number of nodes, the more natural users will be. However, it is difficult to reach a consensus if there are too many nodes. For example, it is relatively easy to make decisions when there is only one host in a meeting. However, if a conference allows everyone to make decisions, the difficulty and complexity will increase.
Second, the predicament of trustworthiness and untrustworthiness.
In a blockchain environment, the trusted and untrusted conditions are different. The traditional Internet has a trusted consensus mechanism which is based on the network reliability. However, in the blockchain, the network environment is not necessarily reliable, so it needs to prevent so-called Byzantine attacks .
Third, the dilemma of on-chain and off-chain performance.
All blockchain optimisation algorithms are now based on the separation of transactions and settlements. After the transaction is completed at the core of a partition, a consensus will be reached throughout the blockchain to complete the whole settlement.
Now the off-chain transaction is complete, it is being moved to the on-chain, where the speed of transaction is obviously faster. In fact, the chain’s original transaction function was interrupted. Now it only provides the settlement function without the transaction function.
Fourth, the dilemma of global performance and local performance.
The global performance depends on the global settlement, while the local performance is an area performance. For example, if there is a trade between A and B today, they just have to make the settlement between themselves. In this way, A and B can choose any day to do the settlement on the chain without other people knowing or participating. This is a local optimisation solution.
Fifth, the difficulty of the structured program and optimisation program.
The blockchain is working like a list. It can be optimised in one list, a diagram, a network or even the entire structure. Which optimisation solution to choose depends on whether you want to perform a simple optimisation or perform a structural optimisation.
The Optimisation Directions of Blockchain’s Performance
First, a multi-chain optimisation.
That is, the multiple chains each execute their own transactions and determine a time to complete the settlement later.
One way of multi-chains optimisation is to solve the performance problem through the side-chain mechanism. The side-chain mechanism transfers the main chain’s assets to another side chain. Assets actually represent one transaction. How is this to be understood? In fact, there is a structure between multiple chains. Some chains are responsible for doing accounts, and some chains are responsible for doing transactions. The responsibilities between the chains are distributed according to the roles for the performance improvement of the blockchain.
In addition, the performance issues can also be solved using a tree-chain method. Tree chains are connected between different chains. They have a main chain and many sub-chains above the main chain similar to human genealogy.
The Lightning Network is also a main chain but with off-line chains. It is more like a channel on which users can execute transactions without making the settlements on the main chain.
Second, the centralised optimisation.
One way to centralised optimisation is to build a large computing centre.
A single node transaction cache scheme means a transaction between two nodes. With this type of transaction, it is possible to set up specials channels between one of the two nodes and many other nodes.
Third, the local optimisation.
One method of local optimisations is the trusted verification node. This means that transactions do not necessarily have to be performed by all nodes. Some nodes execute the transaction and synchronise with the other nodes. This saves time and steps to verify all messages in each node.
Fourth, the structural optimisation.
The structural optimisation is relative to the overall optimisation solution. One is the hierarchical consensus mechanism. For example, the tree chain companies mentioned above only need to reach consensus among the grandchildren nodes. If it’s necessary, they can reach the consensus among the child nodes in the upper level.
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