Improving Bitcoin Transaction Propagation Efficiency through Local Clique Network

Abstract

AbstractBitcoin is a popular decentralized cryptocurrency, and the Bitcoin network is essentially an unstructured peer-to-peer (P2P) network that can synchronize distributed database of replicated ledgers through message broadcasting. In the Bitcoin network, the average clustering coefficient of nodes is very high, resulting in low message propagation efficiency. In addition, average node degree in the Bitcoin network is also considerably large, causing high message redundancy when nodes use the gossip protocol to broadcast messages. These may affect message propagation speed, hindering Bitcoin from being applied to scenarios of high transactional throughputs. To illustrate, we have collected single-hop propagation data of transactions of 366 blocks from Bitcoin Core. The analysis results show that transaction verification and network delay are two major causes of low transaction propagation efficiency. In this paper, we propose a novel P2P network structure, called local clique network (LCN), for message broadcasting in the Bitcoin network. Specifically, to reduce transaction validation latency and message redundancy, in LCN local nodes (logically) form cliques, and only a few nodes in a clique broadcast messages to the other cliques, instead of each node sending messages to its neighboring nodes. We have conducted extensive experiments, and the results show that message redundancy is low in LCN, and message propagation speed increases significantly. Meanwhile, LCN exhibits excellent robustness when average node degree remains high in the Bitcoin network.