International Journal of Social Sciences and Management Review Volume: 05, Issue: 02 “ March - April 2022” ISSN 2582-0176 www.ijssmr.org Copyright © IJSSMR 2022, All right reserved Page 257 ENHANCING TRANSACTION THROUGHPUT IN PUBLIC BLOCKCHAIN NETWORK USING NESTED CHAINS VILMA MATTILA, PRATEEK DWIVEDI, PRATIK GAURI & MD AHBAB 5ire (Sustainable Distributed Computing) 160 City Rd, London, United Kingdom Corresponding Author: ahbab@5ire.org https://doi.org/10.37602/IJSSMR.2022.5218 ABSTRACT In this paper, we propose a new transaction sharding technique that aims to improve the scalability of the 5irechain network. This sharding technique called “nested chain” can be easily implemented in a decentralized setting like the blockchain. The sharding technique re- duces cross-chain dependencies by ensuring that all the transactions sent from the same address will be found in blocks along the same chain and there will be no possibility of double-spending of the same token in two different chains. Our technique does not require additional tokens and it operates only on the same token across multiple shards. 1.0 INTRODUCTION The total market cap of cryptocurrencies stood at US$3 trillion in November 2021 before shedding a third of its total value by early 2022. There are well over 6,000 different coins and tokens trading on cryptocurrency exchanges today. The underlying structure of these cryptocurrencies is based on blockchains – a data structure that serves as a decentralized ledger that records past transactions in an immutable and transparent manner. Scalability is one of the crucial issues concerning a blockchain ecosystem. The scalability of any blockchain platform determines the peak number of transactions it can handle. Decentralized ledgers must address the scalability issue in order to be adopted by large financial farms. There are a few techniques currently being explored by researchers to deal with the scalability issue. One of them relies on having parallel chains with dedicated coins. In those ecosystems, each parallel chain has its own coin, thereby eliminating the possibility of double-spending across different chains. In this paper, we propose a new design for maintaining parallel chains in 5ire network. Our design, henceforth called “nested chain” does not rely on additional coins, rather the same token can be used across all the parallel chains. Our technique increases the scalability of 5ire chain by many folds while preventing double spending of a token. 2.0 LITERATURE REVIEW Sharding in distributed ledgers was conceptualized by Danezis et al. [2], and Croman et al. [1]. The goal of sharding is to split up the task of consensus among different nodes, for improving network throughput and reducing computational and storage overhead on a single node. Luu et al. [5] maintains one single chain but divides mining with respect to different