DEXON: A Highly Scalable, Decentralized DAG-Based Consensus Algorithm
This addresses the scalability problem for blockchain developers and users, offering a solution that is not explicitly incremental but presents a new framework and protocol.
The paper tackles the trade-off between decentralization, scalability, and security in blockchain systems by proposing DEXON, a novel blockchain system that achieves high scalability and low transaction confirmation latency while remaining decentralized and robust in real-world environments.
A blockchain system is a replicated state machine that must be fault tolerant. When designing a blockchain system, there is usually a trade-off between decentralization, scalability, and security. In this paper, we propose a novel blockchain system, DEXON, which achieves high scalability while remaining decentralized and robust in the real-world environment. We have two main contributions. First, we present a highly scalable sharding framework for blockchain. This framework takes an arbitrary number of single chains and transforms them into the \textit{blocklattice} data structure, enabling \textit{high scalability} and \textit{low transaction confirmation latency} with asymptotically optimal communication overhead. Second, we propose a single-chain protocol based on our novel verifiable random function and a new Byzantine agreement that achieves high decentralization and low latency.