Understanding the Transaction Placement Problem in Blockchain Sharding Protocols

While many researchers adopt a sharding approach to design scaling blockchains, few works have studied the transaction placement problem incurred by sharding protocols. The widely-used hashing placement algorithm renders an overwhelming portion of transactions as cross-shard. In this paper, we analyze the high cost of cross-shard transactions and reveal that most Bitcoin transactions have simple dependencies and can become single-shard under a placement algorithm taking transaction dependencies into account. In addition, we perform a case study of OptChain, which is the state-of-the-art transaction placement algorithm for sharded blockchains, and find a shortcoming of it. A fix is proposed, and our evaluation results demonstrate that the fix helps OptChain improve the system throughput by 4x.