How does Quai Network scale?
Quai Network is patterned after sharded blockchains. It takes a single blockchain and breaks it into many smaller and faster blockchains to improve performance. What makes Quai Network truly special is the incentive structure and mechanism in organizing shards.
Unlike most sharded blockchains, Quai Network is Proof-of-Work. Proof-of-Work provides a verifiably objective mechanism that is highly resistant to centralized social cooption. Giving Quai Network two unique advantages:
  • A highly decentralized set of network validators.
  • Tangible value creation that operates outside the realm of social consensus.
Through the use of sharding, Quai Network is able to handle drastically more transaction throughput. Each chain is able to run asynchronously to confirm and validate transactions. Users are freely able to move across chains in order to optimize the ecosystems that benefit them most.
Because users are freely able to move funds, miners are also incentivized to mine where users are interacting to collect transaction fees. This effect alongside miner rewards leads to equal distribution of hashrate and security across the many different shards.
Outside of miners and users, nodes will also see an incentive to optimize their network topology due to the ability to colocate in different shards. This process is similar to choosing the most efficient VPN to connect to the internet. The result is that nodes will see fewer hops and improved latencies between their peersets, allowing each shard to produce larger sized blocks.
In addition, Quai Network is able to add more shards that further optimize the miner, user, and node incentive structure to produce more transaction capacity.
Overview of Quai Network Chain Topology
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