Proof-of-Enough-Work Consensus Algorithm for Enhanced Transaction Processing in Blockchain

Abstract

One of the biggest criticisms of the Bitcoin Core blockchain technology lies in its consensus algorithm, known as Proof-of-Work (PoW). This compute-intensive consensus algorithm is resulting in an ever-increasing electrical cost per transaction, this is compounded by its data storage limitations. Consequently, this phenomenon determines the maximum limit in the transaction processing rate. This limitation is causing many industries to refrain from using Blockchain technology. This paper proposes a Proof-of-Enough-Work (PoEW) consensus algorithm for a BC blockchain configuration to get rid of this obstacle. We present parallel block processing through the reallocation of computing resources, specifically used to add blocks to the blockchain, also called mining. This is explicitly done with an extension to the key BC mining parameters, called the block difficulty or the amount of computing effort needed to process a block. The introduction of an efficient use of computing resources or effort significantly increases the transaction processing rate.Through simulations we demonstrate a significant increase in transaction processing rate compared to conventional PoW. It produces transaction processing comparable to centralised transaction networks or a high transaction throughput solution. Moreover, the proposed consensus algorithm reduces the cost per transaction in terms of electricity usage.