Alphabill introduces four innovations
A New Transaction UnitThe Alphabill blockchain is built using bills as transaction units. We introduce a formal category theory of money and payments and show that parallel decomposition (the basis for both scalability of production and verification) is possible with a bill-based model.
State Tree RecursionState tree recursion means that the global state is decomposable into sub-blockchains for tokens. Each token is independently verifiable and actionable in the real world. When you receive a ten dollar bill you don't need to verify every other dollar bill in the economy. The same is true with tokens minted on Alphabill.
A New Consensus ProtocolAll attempts at decomposition to date are based on a federated approach or blockchain of blockchains. Alphabill has a single consensus instance such that all machines operating in parallel achieve fast deterministic finality.
A New Computational ModelTo enable a multi-machine model for smart contracts, a new computational model is introduced: tokens are controlled using predicates (similar to Bitcoin locking scripts) and ownership is passed to contracts for execution but not settlement.
Changing The Frame of Reference
Ethereum has accounts with balances. Alphabill has tokens with owners. Each transaction involves only one unit, which changes the token ownership.
A Single State Tree
Partitions are logical divisions of the state tree. Shards are sets of machines that process transactions. As transaction volumes grow in a partition, shards can be added indefinitely. This is possible in a bill-based architecture due to parallel decomposability – there is zero cross-shard coordination needed.
A Single Consensus Instance
A New Model for Programmability
There are two models for computation in Alphabill: a) predicates similar to Bitcoin opcodes; b) and stateful smart contracts. This enables composability, expressibility, and most importantly performance – parallel execution of contract code at scale.
Tokens Are Separate From Computation
Tokens exist as first-class citizens on the state tree, not as variables in a smart contract. Token ownership is transferred to smart contracts through predicates, which lock the token and enable an owner to pass a proof of ownership to the smart contract, which executes and then enables new owners to present proofs back to the token addresses for settlement.
Object-Oriented Token Design
Smart Contract Composability
Existing smart contract platforms enable programmability via a shared state model. However, a shared global state cannot scale beyond a single machine. Alphabill uses a new paradigm for smart contract composability – certified message passing without direct inter-shard communication.
A Decomposable Ledger Means Portable Tokens
Alphabill is decomposable into token ledgers, carrying all necessary context for updating and verifying without sacrificing security. Tokens can be verified independently on mobile devices and require only a small amount of storage. Tokens are portable – they can be stored in Enterprise ERP systems, they can be transferred and used in enterprise and decentralized applications.
Read about the whole new world of use cases that become possible here.