Bitcoin is the first system to achieve consensus at the global scale using blockchain as its underlying technology. Its success has spurred a new wave of imagination and ideas across all disciplines. However, the current blockchain technology cannot support many of these ideas due to its poor performance and we are working on blockchain technology which obtains high performance in all the dimensions (throughput, latency, storage, computation, communication etc).
Consensus is at the core layer of every blockchain design and therefore optimizing this layer is paramount for high performance. Since blockchains run on physical networks, our goal is use all the available physical resources to achieve high performance.
Transaction throughput, confirmation latency and confirmation reliability are fundamental performance measures of any blockchain system in addition to its security. In a decentralized setting, these measures are limited by two underlying physical network attributes: communication capacity and speed-of-light propagation delay. Existing systems operate far away from these physical limits. In this work we introduce Prism, a new proof-of-work blockchain protocol, which can achieve 1) security against up to 50% adversarial hashing power; 2) optimal throughput up to the capacity C of the network; 3) confirmation latency for honest transactions proportional to the propagation delay D, with confirmation error probability exponentially small in CD; 4) eventual total ordering of all transactions. Our approach to the design of this protocol is based on deconstructing the blockchain into its basic functionalities and systematically scaling up these functionalities to approach their physical limits.
On top of scalable consensus layer protocols, so called layer-2 protocols further enhance throughput, latency and privacy of blockchain systems.
Undisclosed channel balances and mismatched transaction fees cause delays and failures on some payment paths in payment-channel networks. For atomic transfer schemes, these straggling paths stall the whole transfer. We show that the latency of transfers reduces when redundant payment paths are added. This frees up liquidity in payment channels and hence increases the throughput of the network. We devise Boomerang, a generic technique to be used on top of multi-path routing schemes to construct redundant payment paths free of counterparty risk.