In many traditional blockchains, consensus mechanisms usually operate at the transaction execution stage or afterward, rather than at the mempool (pending transactions) level. For example, in a standard BFT (Byzantine Fault Tolerance) consensus, the mechanism used by TVM networks, the block proposer first suggests a block to the network. Then, other participants verify the block. If two-thirds of the network reaches a quorum on the block’s validity, it’s confirmed. This process typically more than doubles the time required for transaction processing, as the block must be both proposed and validated. In practice, the delay is often greater due to network transmission, communication overhead, and the multiple stages of data exchange required by BFT protocols.
Additionally, there’s a workload imbalance. While the block proposer is busy creating and proposing a block, other network participants are mainly idle when it comes to block proposing. The role of the proposer is rotated according to the protocol, often with elements of randomness, so each node must reserve significant resources that remain unused while waiting for its turn to propose.
Another problem is that there is potential for manipulation because the block proposer has complete control over which transactions from the mempool to choose. This is referred to as MEV (Maximum Extractable Value), where the proposer censors certain transactions or prioritizes trades on decentralized exchanges for their own benefit. Other participants don’t know much about this process because they are more interested in the validity of a transaction than in where it came from. (For instance, miners might take advantage of the ability to lower network fees to zero in the early days of Ethereum by incorporating the transaction and earning additional rewards.)
Many of these issues are addressed with a DAG (Directed Acyclic Graph) mempool. This concept was first proposed by Facebook’s Libra and later developed by projects like Aptos and Sui.
Processing transactions in parallel is the second significant challenge. Bottlenecks occur because most blockchains operate synchronously, processing transactions one at a time. Transactions are first executed and, if any conflicts arise, they are rolled back and reprocessed in sequence. This can lead to a computational workload that is four times higher. We refer to this strategy as optimistic parallelism.
Enter Tycho: The Protocol of Tomorrow, Available Today
Tycho is a high-performance protocol designed for building Layer 1 blockchain networks. Developed by Broxus, Tycho is made to overcome the limitations we mentioned earlier. By utilizing DAG (Directed Acyclic Graph) for consensus and processing, Tycho represents the next step in blockchain evolution, offering unmatched efficiency, speed, and reliability. Let’s find out more about Tycho to learn why it stands out in today’s crypto market.
Lightning-Fast Transactions
Conventional blockchains have latency issues, particularly when verifying multiple transactions at once. Tycho solves this using DAG. Since each transaction enters the DAG directly, there is no need to group transactions into consecutive blocks, allowing for quicker finalization. Tycho often achieves near-instantaneous transaction finality—often in less than a second. For sectors like DeFi or high-frequency trading, that need real-time processing, this is revolutionary.
Unparalleled Scalability
Tycho’s DAG structure accelerates transaction speed and enables high scalability. Unlike traditional blockchains that can slow down as they grow, Tycho is designed to handle large volumes of transactions simultaneously without creating bottlenecks. The parallel processing capabilities ensure that multiple transactions can be executed at the same time, making it easier for the network to grow without affecting performance.
Robust Consensus Mechanism
Tycho’s efficiency lies in its unique consensus mechanism. Once transactions are recorded in the DAG, they are sorted and linearized using a uniformly distributed sorting algorithm. This guarantees that all nodes in the network see the same transaction order, making consensus robust without the delays typically seen in traditional blockchain systems. The result is an uninterrupted and decentralized agreement on the validity of transactions.
Validator Efficiency
Tycho’s approach to validator efficiency is one of its main advantages. Validators handle transactions on their own, without requiring continuous communication with one another. They only communicate at the point of block construction, exchanging basic information like 32-byte block hashes. As a result, this drastically minimizes overhead, allowing the network to run at high speeds. By eliminating the need for continuous data synchronization between validators, Tycho reduces latency and enhances performance.
Parallel Transaction Processing
Tycho’s utilization of parallel processing differentiates it from conventional blockchains. It’s inspired by the actor model used in TON (Telegram Open Network), as Tycho groups transactions by recipients and processes them simultaneously. This ensures that transactions do not interfere with one another, reducing processing time significantly. As a result, Tycho can handle a high volume of transactions without slowing down or encountering conflicts.
Why This Matters
For those familiar with blockchain technology, Tycho’s advancements are pretty clear. The ability to process transactions at high speeds with minimal validator overhead opens the door for a variety of applications. From decentralized finance (DeFi) to gaming and digital assets, Tycho can be utilized to provide real-time services without compromising decentralization, speed, or security.
For beginners, here’s a simple example: You’re trying to send money or complete a task online. On traditional systems, you might wait minutes—or even longer—for confirmation. Tycho changes that by allowing everything to happen almost instantly, no matter how many people are using it at the same time. It’s like upgrading from dial-up internet to fiber-optic speed. The difference is monumental, to say the least.
Let’s compare the Tycho protocol with other solutions to see where it shines.
Tycho vs. Ton
Tycho stands out from The Open Network (TON) thanks to its unique way of reaching consensus and creating blocks. Here’s a simple breakdown of how it works:
- A group of validators is chosen to act as nodes for each shard (a part of the network).
- One of these nodes becomes the “collator,” whose job is to create a block and share it with the other nodes.
- The other nodes check the block and sign it if it’s valid.
- These signatures are then spread across the network.
- Once this is done, the next block can be created.
Tycho vs. Sui
In the Sui blockchain, the parallelization of transactions relies on a state access method, meaning that transactions can be processed at the same time using a specific method to access data. To do this, the Sui protocol checks that transactions are changing different sets of objects that don’t overlap, so they aren’t trying to change the same shared data.
In contrast, Tycho uses a built-in system that allows smart contracts to interact in a way that supports asynchronous and parallel processing. This design allows transactions to be executed quickly, efficiently, and securely from the beginning, making it a smoother and more scalable solution.
Join the Beta Test
We’re excited to open up Tycho’s beta testing phase. Whether you’re a developer, enthusiast, or simply curious about cutting-edge blockchain technology, this is your chance to explore Tycho’s capabilities firsthand. Help shape the future of blockchain by providing feedback and discovering what makes Tycho the protocol of tomorrow.
Sign up now to be part of Tycho’s beta test and experience the future of decentralized transaction processing.
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