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Appl. Sci. 2021, 11, 9372 18 of 27 8.1. On-Chain Solution On-chain solutions tend to address scalability issues by working on elements within the blockchain. This section will discuss on-chain approaches to address the scalability issue of blockchain. 8.1.1. Block-Data-Related Approaches 1. Block size increase The big block size is typical of on-chain solutions. In this approach, the public block- chain scalability issue has some significant linkages to the block size [119]. Obviously, the big block can accommodate more transactions, which would undoubtedly improve the overall throughput. Bitcoin unlimited [8] is an example of a big block. This method in- creases transmission limit and decreases cost related to transmission as compared to the conventional method. However, it downgrades block prorogation efficiency (in time) and may increase the blockchain forking chances, leading to the probability of orphan block to incur higher maintenance cost. The full node would be more expensive to operate through this approach. Miners prefer this approach because the increased block size can accommodate more transactions in one block, and they incur a larger transaction fee when mining that block. 8.1.2. Segwit In Segwit method [121], the block size is kept constant while adding more transac- tions to the block. This approach aims to extract the signature data from the transaction and store it outside the base transaction block to effectively allow more spaces for new transactions. In this approach, the validating part is kept separated from actual data of the transaction. As the digital signature contributes almost 70% to the transaction, the signa- ture must be stored in the data structure called the witness and is isolated from the trans- action to resolve the malleability of the transaction [8]. In addition, Segwit has launched a new transaction size unit. A single transaction is divided into two sections. Non-witness (it should be stored in the block as usual) and witness data (it will transfer to extended block). Moreover, non-witness data bytes are counted as 4 WU each, whereas the witness data byte is counted as 1 WU each. The highest storage space for a block is 4 WU, which is equivalent to the old maximum block size of 1 MB, if no node uses Segwit. 8.1.3. Sharding Sharding was traditionally proposed in the field of database for storage optimization in commercial databases. It was later adopted in public blockchains to address the scala- bility issue. It is considered to be one of the effective methods. In the sharding technique, the nodes are broken into several chunks called shards [122] . Each shard possesses a small part of nodes. Every shard is responsible for processing small portions of a transaction. Therefore, the transaction is processed in parallel. The parallel processing of the transac- tion improves the authentication mechanism that ultimately maximizes the throughput of the entire blockchain network. The Byzantine consensus algorithm is used in between the nodes within shards to agree on the state of the transaction [25]. There is an immense need for the inter-shard communication protocol for cross-shard transaction. The total computation energy increases with the increasing number of shards. In this technique, every shard process transaction with the same throughput, and by increasing the number of shards, results in a linear increase in throughput. Elastico [123] and OmniLedger [124] implemented the sharding technique to increase the throughput. The only difference be- tween them is that Elastico is unable to process inter-shared transactions while Om- niLedger processes them atomically using an atomic Commit Protocol. Another approach utilizing sharding is the rapid chain [79]. Sharding technique is the only viable solution if transaction stays in the same shard, which is considered to be the most significant limitation. As a matter of fact, inter-shardPDF Image | Review of Challenges in Blockchain Scalability
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