Optimal Transaction Throughput in Proof-of-Work Based Blockchain Networks

As of today, Bitcoin suffers with restrictive transaction throughput of 3–7 transactions per sec and the transaction confirmation takes several min as bitcoin blockchain was designed with a block creation time of 10 min and each block is restricted with less blocksize for fast transmission. In this paper, we obtained the optimal transaction throughput for a Proof-of-Work (PoW) based longest chain rule blockchain network (called bitcoin protocol). This is done by modeling the delay diameter (D) and double spending attack in a Erd o ¨ s-R e ´ nyi random network topology as constraints. Through numerical results, it is shown that the throughput can be significatly improved without compromising the fairness of the network.