Estimating the Relationship Between Block Size and Block Propagation Time in Bitcoin by Simulation

Abstract

Bitcoin is known to have poor transaction processing performance. A performance improvement is expected by increasing block size, but how much improvement can be achieved in theory is not well understood. In this paper, by using a blockchain simulator called Simblock, we numerically evaluate the effect of the block size on block propagation time. Then, based on the evaluation results, we discuss the possibility of improving transaction processing performance. As a result, it is estimated that the expected value of transaction processing capacity can be improved to about 2,592 transactions per second by approaching the block propagation time to the block generation time interval.