Meta-Regulation: Adaptive Adjustment to Block Size and Creation Interval for Blockchain Systems

Abstract

Once deployed, a decentralized blockchain system ensures that it will operate faithfully so that no one can interfere with or manipulate its predefined regulations, such as block size and block creation interval investigated in this paper. However, fixed regulations prevent that system from adapting to the change of the environment, such as increasing the underlying network capacity, and result in sub-optimal performance. For example, Bitcoin remains at 7 TPS (transactions per second), even operating over the current Internet. In this paper, we propose a new paradigm for defining the behavior of a consensus system, named as Meta-Regulation, which allows autonomous evolution of the system behavior. A meta-regulation adjusts the actual behavior of a consensus system in response to the changing capacity of the underlying infrastructure and the community of participants. We demonstrate the effectiveness of the proposed meta-regulation by achieving significantly improved throughput and latency for Bitcoin, adapted to the current capacity of the Internet. Our experimental results show that Meta-Regulation can achieve at least <inline-formula xmlns:mml="http://www.w3.org/1998/Math/MathML" xmlns:xlink="http://www.w3.org/1999/xlink"> <tex-math notation="LaTeX">$7\times $ </tex-math></inline-formula> performance improvement over Bitcoin network deployed in 2009, resulting in 49.7 TPS or 68% reduction confirmation latency by fully utilizing the bandwidth and the computing power of average network nodes.