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  3. Volume 6, Number 2, 2024
  4. Modeling the Block Formation Process in Blockchain and Its Impact on Scalability

Modeling the Block Formation Process in Blockchain and Its Impact on Scalability

CSN.
2024;
Volume 6, Number 2
: pp. 1-14
https://doi.org/10.23939/csn2024.02.001
Authors:
  1. Orest Vovchak
  2. Zenovii Veres
1
Lviv Polytechnic National University, Department of Computerized Automatic Systems
2
Lviv Politechnic National University

The article investigates the process of block formation in blockchain networks and the impact of node network architecture and consensus algorithms on their scalability and performance. Analysis of blockchain system scalability is important due to problems that arise when network load increases, particularly the increase in the number of block forks and transaction confirmation times. The research focuses on studying the impact of network delays and the choice of consensus algorithm on the performance and scalability of blockchain networks. The main attention is devoted to mathematical models that describe block formation, as well as the analysis of factors affecting transaction processing speed and throughput. The primary consensus algorithms, such as Proof of Work (PoW) and Proof of Stake (PoS), are considered, and their impact on scalability in implementations based on the Ethereum Virtual Machine (EVM) and Bitcoin is compared.

Experimental studies using Geth and Amazon cloud services revealed that the application of the Proof of Stake (PoS) consensus algorithm increases network performance by reducing the complexity of the block formation process in blockchain networks by 99% and accelerates consensus achievement by 70% compared to Proof of Work (PoW). It was also established that increasing the number of nodes from 5 to 50 reduces the network's throughput by almost 10%, and the average confirmation time doubles.

The obtained results are aimed at solving the scalability issue by reducing transaction confirmation times for the implementation of decentralized technologies in the Internet of Things (IoT) sphere, where processing speed and storage of large volumes of data are critically important.

blockchain
block formation
consensus algorithms
decentralized technologies
Ethereum Virtual Machine (EVM)
internet of things (IoT)
mathematical modeling
network delays
scalability
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