Quantitatively Analyzing Relay Networks in Bitcoin

Bitcoin’s throughput is far lower than those of centralized systems such as Visa and PayPal. To handle a comparable number of transactions, Bitcoin’s throughput must be improved, which will require a reduction in the block propagation time. Relay networks have attracted attention as a method to improve throughput. However, the nature and strength of the effects of relay networks are not yet clear. In particular, the effects on individual nodes have received little attention. Thus, this study aims to investigate the effects of relay networks on the Bitcoin network and its nodes under the current network state in approximately 2019. We simulate a relay network under the current network state because simulation is virtually the only way to obtain data for all nodes. A major contribution of this study is that it is the first to investigate the relay network effect on the 90th percentile of block propagation time. Moreover, this study shows that relay networks benefit not only the system but also the nodes utilizing them. The utilizing nodes’ blocks were more than six times more likely to be approved as valid blocks when nonutilizing and utilizing nodes generated blocks simultaneously. This finding can motivate the use of nodes in relay networks.