Canonical Transaction Ordering: New Transaction Ordering Rule for Bitcoin Cash

CTOR: Bitcoin Cash Transactions Made Easy!


Currently the transaction sorting process of Bitcoin Cash is based upon the topological transaction ordering rule. This however is considered as a tedious process since the network must process excessively large sized blocks.

To overcome this, Bitcoin Cash(BCH) developers and researchers have proposed a new ordering rule for Bitcoin Cash. The transaction sorting process is called ‘canonical transaction ordering rule’. The ‘canonical transaction ordering’ rule is said to sort different transactions based on their identifiers. Sorting based on identifiers makes processing of large blocks on the network an easy task to accomplish.

Canonical Transaction Ordering Rule (CTOR) for Bitcoin Cash:


 “We propose to replace the topological transaction ordering rule of Bitcoin by the canonical transaction ordering rule, where transactions are expected to be sorted against their transaction identifiers within a block. This change eliminates an entire class of scalability challenges for Bitcoin in order to process very large blocks. This change also delivers two compelling use cases. First, it allows to produce compact proofs of transaction inclusion/exclusion, making chainless apps more capable. Second, it gives a newer degree of control to Bitcoin participants to localize their transaction within blocks.”

As published in a paper by Joannes Vermorel (Lokad), Amaury Séchet (Bitcoin ABC), Shammah Chancellor (Bitcoin ABC), Tomas van der Wansem (Bitcrust), on June 12th, 2018, a new method is proposed to change the existing topological transaction ordering that exists within the Bitcoin Cash network.

Developers have named the paper as Canonical Transaction Ordering for Bitcoin and it briefs the advantages of changing the transaction ordering rule. As mentioned in the paper, the canonical ordering process is said to be more effective and efficient, and promotes better and effective scaling.

The current topological transaction ordering rule process transactions in a way that every remote peer has to forward the transactions to the neighboring peers. This kind of process requires the list of all the peers to be sorted topologically. Canonical transaction ordering for Bitcoin Cash however, considers blocks as a set rather than a list. This enables Bitcoin Cash to process large block easily.

The advantages as quoted by the researchers and developers are:

“First, it allows to produce compact proofs of transaction inclusion/exclusion, making chainless apps more capable.”

Second, it gives a newer degree of control to Bitcoin participants to localize their transaction within blocks.”

Block Propagation Effectiveness and Opportunity of Chainless Apps:

As proposed in the paper, canonical ordering process will increase the efficiency of circulation of the blocks and the block emission. Researchers and developers have also improvised the software implementations as well as enhanced the proofs of transactions that allows the participants in the network to use their respective bandwidth capacity in an efficient manner. This can be achieved by broadcasting maximum information about the new block much prior to its release.

The proposed ordering rule can also lead to chainless applications since it allows opt-in locality between participants. As mentioned in the paper:

The CTOR offers the possibility for any participant to zoom into a block to identify whether a transaction is found or not without processing the whole block. This property is of high interest because chainless apps gain the possibility to verify flows of transactions without being 6 encumbered by an arbitrarily large blockchain.”

Block Propagation Effectiveness and Opportunity of Chainless Apps

The paper was published on 12th of June and mainly describes the need and impact of computational load improvement.  The canonical transaction ordering rule aims at easing the process of giant blocks.

Also Read: Bitcoin vs Bitcoin Cash: Cryptocurrency Clash

The idea is already being discussed by supporters of Bitcoin Cash and feedbacks have been pouring in on different social media platforms and forums whether this agreement change would be a part of the upcoming November upgrade.

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