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A blockchain system is a replicated state machine that must be faulttolerant. When designing a blockchain system, there is usually a trade-offbetween decentralization, scalability, and security. In this paper, we proposea novel blockchain system, DEXON, which achieves high scalability whileremaining decentralized and robust in the real-world environment. We have twomain contributions. First, we present a highly scalable sharding framework forblockchain. This framework takes an arbitrary number of single chains andtransforms them into the \textit{blocklattice} data structure, enabling\textit{high scalability} and \textit{low transaction confirmation latency}with asymptotically optimal communication overhead. Second, we propose asingle-chain protocol based on our novel verifiable random function and a newByzantine agreement that achieves high decentralization and low latency.

DEXON: A Highly Scalable, Decentralized DAG-Based Consensus Algorithm