The current systems have given the world an ability to achieve more than just making a crypto transaction on a blockchain. Although each system provides its unique features, they face issues in many aspects of the real-world scenarios. In this part of the paper, we will highlight the most critical failures of the current systems.
Resource is consumed by the system to carry out a certain operation on the blockchain. Under peak requests, the problem that arises is whether the system can behave consistently or will it grow over time depending on the availability of resources on the network. These concerns are merely not hypothetical but very practical if the network that is introduced is to solve these problems.
There is a huge concern regarding the fact that during peak requests is the system autonomous enough to decide to distribute resources. A system like this needs to be capable enough to make autonomous decisions in securing, improving and inter-linking the other systems. It is a statement of great advancement for the system to self-govern.
Interoperability was discovered recently and it solves the problem of blockchains working in silos. The current system’s concern is whether it will communicate with other systems or not. The idea of trading transactions from one blockchain to another is a huge milestone to achieve. With the present applications upgrading it is necessary for the system to align itself with the growth in the industry streamlined with interoperability.
Blockchain became popular because one of its crucial features is a decentralized system. Users from around the globe are connected to various blockchains, giving them a right to equal representation. It is a matter of great responsibility that the current system proposed is fair in allowing regular computers to participate in the network to reach decentralization. The system is also under analyses to present itself fair in matters of the distribution of rewards. The present implementations of the blockchains can only illustrate what they highlight when they are running on a system with high hardware specifications, which in return breaks the overall intent of fairness and true decentralization. As highlighted by Ethereum Parity client, it achieved throughput around 3,000 transactions per second which is only possible when it is running on a high-performance system. However, most practical implementations of the blockchains are limited to around 15 ~ 30 transactions per second because in the public network not all the nodes possess the same resources as tested during their initial prototyping. The other reason included is that the current consensus algorithms are limited to some extent, this slows down the processing time and the systems are currently based on the architecture of state transition mechanism. Hence, to reach consensus the underlying system needs to share the history of its root and reach the agreement based on the validity. This architecture is followed by POW and 2 White Paper v2.0, Released 26th October, 2020 POS based systems such as Bitcoin, Ethereum, NXT and Bitshares. To become successful a trade-off has to be made, therefore, the resulting system has proven to be a great success so far and making historical changes in the industry. Although, the resultant protocol is subjected to limitations in terms of scalability, security, interoperability and fairness. A trade-off system is subject to certain risks and failures, failing to accommodate improvements, only to become a performant and upgradeable solution for the future needs.Therefore, there is a need for a robust, optimal and autonomous solution, which not only satisfies and accommodates the current systems but the future systems as well. Libonomy is the proposed system for all these problems. It is powered by a consensus engine that is not only powered by AI but is also autonomous, interoperable, secure and scalable. As there is a need for a completely new architecture which could serve as a foundation to build future blockchains efficiently, along with Libonomy, we have introduced the five-layered architecture each with its strengths and functionality, revolutionizing the blockchain industry uniquely.