SOREC: Self-organizing and resource efficient clustered blockchain network

With the emergence of Industry 4.0, the features of the technologies that are utilized in broad range of areas are obliged to change according to the new necessities. Especially, the network requirements have to be adopted accordingly in terms of efficiency, transparency, faster pay-outs and asset security. The blockchain technology promises to fulfill the requirements these key aspects of networking impose with the advantages it provides. However, the technology has certain limitations regarding its scalability and its transaction throughput rate. The advantages in security provided by blockchain comes at a cost in terms of scalability and transaction throughput rate. In this paper, a novel decentralized and distributed network architecture is presented. With its novel approach the proposed architecture aims to address these issues with network scalability and to provide an increased transaction throughput rate. Without introducing any centralization with its clusters, the proposed architecture allows the network to utilize its resources much more efficiently and effectively, which allows the participants to focus their efforts on mining, increasing the performance of the network. The architecture also proposes a novel communication handling promoting bulk communications and random workload distribution over the entire network to reduce the bottlenecking that occurs on the peers. A comparison to other state-of-the-art works, namely Bitcoin [1] and Community Clustering [2], is also presented in this paper. The comparison of the collected data shows that the proposed architecture in this paper is able to reduce the overall network latency and provide an increase in the transaction throughout of the network.