Binary Blockchain: Solving the Mining Congestion Problem by Dynamically Adjusting the Mining Capacity

Abstract

Mining congestion is a serious issue in blockchain-based cryptocurrencies. It increases the transaction confirmation latency and limits the growth of cryptocurrency. To mitigate the problem, a number of methods have been used in practice and new ideas have been proposed. However, it is not clear whether these schemes can cope with the ever-growing transaction load of cryptocurrencies in the long run. We propose a novel parallel mining method that can adjust the mining capacity based on the transaction load. It does not require an increase in the block size or a reduction of the block confirmation period. In this paper, we describe how and when to divide or merge blockchains, how to solve the imbalanced mining problem, and how to handle the difficulty levels and rewards. We then show the simulation results comparing the performance of Binary blockchain and the traditional blockchain.