Efficient blockchain system based on proof of segmented work

Abstract

The use of Blockchain in cryptocurrency introduces a technology that acts as an unswervingly growing ledger with the capability to keep an everlasting record of all the transactions in a secure, chronological and immutable system. It removes dependency on central financial services, essentially removing the middle-man from the transaction. Bitcoin holds the highest share in the cryptocurrency market. However, Bitcoin has three major problems which are excessive power consumption, confirmation time, and fair reward distribution. Hence, we propose a system (FaircoinBD) where we focus on reducing energy consumption by limiting participation, increasing propagation speed and fair reward distribution. We have also compared our proposed system with Bitcoin and Ether in terms of energy consumption and have reached the conclusion, that if Bitcoin and Ethereum network used our proposed model there would be a 83.33% and 80.0012% reduction of energy consumption respectively.