The Fit of Blockchain into Rural Area Financial Management Accountability in Indonesia

Abstract

It has been well recognized that traditional blockchains have limited throughput. It is intuitive to achieve higher throughput by increasing the block size and shorten the block interval. In this paper, we study the security implications on doing so, and define the boundary for acceptable block sizes and block intervals. We define the security of the blockchain in terms of the stale block rate in the network and carried out an empirical study using a blockchain simulator to find the optimal block parameters (size and interval). We show that it is possible to achieve sufficiently high throughput for a blockchain platform to be used for activities beyond cryptocurrency, such as state-level electronic voting.