An Optimized Structure of State Channel Network to Improve Scalability of Blockchain Algorithms

Nowadays, blockchain is very common and widely used in various fields. The properties of blockchain-based algorithms such as being decentralized and uncontrolled by institutions and governments, are the main reasons that has attracted many applications. The security and the scalability limitations are the main challenges for the development of these systems. Using second layer network is one of the various methods proposed to improve the scalability of these systems. This network can increase the total number of transactions per second by creating extra channels between the nodes that operate in a different layer not obligated to be on consensus ledger. In this paper, the optimal structure for the second layer network has been presented. In the proposed structure we try to distribute the parameters of the second layer network as symmetrically as possible. To prove the optimality of this structure we first introduce the maximum scalability bound, and then calculate it for the proposed structure. This paper will show how the second layer method can improve the scalability without any information about the rate of transactions between nodes.