Hierarchical Multi-Blockchain System for Parallel Cryptocurrency Transfers and Smart Contract Execution

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Most modern blockchain systems face trade-offs between transaction efficiency and smart contract functionality. Ethereum's account-based model enables robust smart contracts but limits parallel execution, while Bitcoin's UTXO model supports concurrent transactions but lacks advanced smart contract capabilities. This paper introduces an innovative solution: a hierarchical multi-blockchain system that harmonizes both approaches through sharded sidechains and account-chain technology.

Core Architecture

1. Multi-Tiered Sidechain Design

2. Account-Chain Integration

Advantages Over Existing Models

| Feature | Proposed System | Ethereum (Account-Based) | Bitcoin (UTXO) |
|-----------------------|----------------|------------------------|----------------|
| Parallel Execution | ✅ Multi-shard | ❌ Single-threaded | ✅ Transactions only |
| Smart Contract Support| ✅ Full | ✅ Full | ❌ Limited |
| Concurrency Safety | ✅ Accountchain | ❌ Race conditions | ✅ Native |

👉 Discover how sharding boosts blockchain scalability

Threat Analysis: Key Findings

FAQ

Q1: How does this system improve smart contract throughput?
A: By distributing contracts across shards, it processes thousands of transactions per second (TPS) vs. Ethereum's ~30 TPS.

Q2: Is the accountchain a single point of failure?
A: No—it’s replicated across nodes and secured via the same consensus rules as the main chain.

Q3: Can existing dApps migrate to this model?
A: Yes, with modifications to support shard-aware state management.

👉 Explore blockchain interoperability solutions

Conclusion

This system unlocks secure parallel execution for both payments and smart contracts—a critical step toward mass blockchain adoption. Future work includes optimizing cross-shard latency and developer tooling.

Keywords: hierarchical blockchain, sharding, smart contracts, UTXO, accountchain, parallel computation, cryptocurrency transfers


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