Flopper1 on Nostr: The solution The Signum blockchain allows for many different transaction typesbesides ...

The solution

The Signum blockchain allows for many different transaction typesbesides the standard money transfer or smart contract execution. Some of these smarttransactions can trigger multiple balance updates. This method gives users the convenience of the classical layer 1 approach, but at a much higher efficiency that is typically achieved only with layer 2 solutions. So in order to properly compare these so-called smart transactions with regular transactions, we introduced a new KPI which we call ‘smart transactions per second’, or STPS. 

The first transaction to benefit from STPS was Signum’s multi-out payment in 2018. This transaction type enabled the Signum chain to conduct a pay-out up to 128 recipients in one transaction. This pushes the STPS from 1,020 to 19,200 per block (new block every 4 minutes). This increased the regular capacity from 4.25 TPS to 80 TPS for a given block size of only 179,520 bytes.
In June 2022, Signum introduced a STPS which is over 1,000x higher and can therefore cover the token distribution volumes in our scenarios 4 and 5. This is accomplished by a smart transaction that distributes revenue, pro rata, to all token holders in a single transaction that takes less than 200 bytes of blockchain space!
For comparison: A simple Bitcoin money transfer transaction usually takes up more than 200 bytes. And this is just a very basic event. All details around Signum’s massive upgrade with the Hard Fork Rainbow can be read here.
This means that Signum is the only blockchain that is able to handle all the scenarios we sketched out in our basic use case:

Signum provides this capacity by using the existing block size and the new transactions from Signum’s SIP-33. Future developments will expand this capability even more, i.e. by introducing new smart transactions with high STPS, reducing the amount of data on the blockchain needed per transaction (like the green contracts recently introduced with SIP-30). Finally, an increase of block size is also possible but might be prioritized downstream while development focuses on smart solutions instead of brute force by larger blocks and higher node requirements.
The big technological difference between Signum and other blockchains — which is very hard to replicate — can be summed up as follows:
* Tokens are native on the chain rather than smart contracts.
* Signum uses an account-basedlogic and not the unspent transaction output (UTXO) standard.
* There are many special (smart) transaction types, e.g. one for paying out revenue to multiple token holders in a single transaction, which scales very efficiently without bloating the chain.
Furthermore, the common operational and economic challenges discussed above do not apply to Signum:
* Creation
As Signum provides tokens as a native element on it’s chain, creation is covered by only one transaction. Please see an example transaction herewhich results in this token here, ready to use from the block of creation. The cost of creating a token is 150 Signa, which is currently less than USD 0.70.
* Distribution of Tokens
As Signum is account-based, a token can be transferred hassle free to any account on the chain with just one click. It’s as easy as sending an email. Example: Distributing a specific dividend-token to 10,327 different holders can already be done within less than 2 hours (see SignumTestnet). The transfers were processed from block 376,611 to 376,638, which took 1hr 48min and cost around 100 Signa (approx. USD 0.60). Note that this is only the initial distribution of tokens! The speed to perform the recurring payouts of the token related dividends is much faster. In fact, it is on a completely different speed level (see next point).
* Distribution of Dividend
To demonstrate that the Signum blockchain can cover scenario 4 in our example above, we repeated sending a dividend to the 10,327 holders in one block more than 90 times — a mere 9% usage of our TPS. Please view these transactions on the chain here (101 times) and here (93 times). The distribution into the respective accounts of any of these 10,327 holders can be seen here. Overall, the chain updated holders’ balance changes more than 2 million times in under 2 minutes!
Finally, it is worth mentioning that Signum is a truly green and decentralized blockchain with no ICO or pre-mine. It is an open source project based on a philosophy of creating cutting edge technology that addresses many of the common problems around trading and security (see more on Signum’s native liquidity pools here). All innovations are kept in line the core principles of blockchains, i.e. decentralization, resistance to censorship, and global availability.