Unlocking Blockchain UTXO Transactional Patterns and Their Effect on Storage and Throughput Trade-Offs

Abstract

Blockchain technology ensures record-keeping by redundantly storing and verifying transactions on a distributed network of nodes. Permissionless blockchains have pushed the development of decentralized applications (DApps) characterized by distributed business logic, resilience to centralized failures, and data immutability. However, storage scalability without sacrificing throughput is one of the remaining open challenges in permissionless blockchains. Enhancing throughput often compromises storage, as seen in projects such as Elastico, OmniLedger, and RapidChain. On the other hand, solutions seeking to save storage, such as CUB, Jidar, SASLedger, and SE-Chain, reduce the transactional throughput. To our knowledge, no analysis has been performed that relates storage growth to transactional throughput. In this article, we delve into the execution of the Bitcoin and Ethereum transactional models, unlocking patterns that represent any transaction on the blockchain. We reveal the trade-off between transactional throughput and storage. To achieve this, we introduce the spent-by relation, a new abstraction of the UTXO model that utilizes a directed acyclic graph (DAG) to reveal the patterns and allows for a graph with granular information. We then analyze the transactional patterns to identify the most storage-intensive ones and those that offer greater flexibility in the throughput/storage trade-off. Finally, we present an analytical study showing that the UTXO model is more storage-intensive than the account model but scales better in transactional throughput.