A UTXO-based Sharding Method for Stablecoin

Si Yuan Jin, Bo Tong Xu, Philip Intallura, Yong Xia · 2022

We propose a UTXO-based sharding method to achieve horizontal scalability in a token-based system, including stablecoin. The critical challenge of the current sharding method is that introducing extra cross-shard transactions significantly impacts transaction latency. Previous solutions use account-based sharding to improve transaction volume, increasing latency. We propose a new method that improves transaction throughput linearly while keeping latency low by reducing cross-shard transactions. We were able to verify our solution through experiments.

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