Blockchain scalability for smart contract systems using eUTXO model

TL;DR

This paper analyzes blockchain scalability solutions, identifies gaps, and proposes an extended UTXO model to better support layer one and layer two scaling, aiming to improve blockchain performance.

Contribution

It introduces an extended UTXO transaction model designed to address scalability challenges in blockchain systems, bridging the gap between existing solutions.

Findings

Identifies limitations in current scalability approaches

Proposes an extended UTXO model for better scalability

Provides industry-based justification for the new model

Abstract

This research critically analyses blockchain scaling solutions based on their ability to realistically balance the properties of the blockchain trilemma. We have concluded this research by outlining a gap in the current body of literature and implementation of scalability solutions. An extended UTXO transaction model is proposed to overcome challenges associated with implementing both layer one and layer two scaling solutions in a blockchain system. The examination of industry approaches is used to justify this direction and puts forth a basis for future work.