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Scalability & Performance

How BTQ handles larger post-quantum transactions at scale

Scalability & Performance

Post-quantum signatures are significantly larger than their classical counterparts. This page analyzes how BTQ's protocol parameters work together to maintain practical throughput, manage storage growth, and keep verification efficient despite the increased data sizes.

The Core Challenge

Replacing ECDSA with Dilithium increases the size of every transaction:

ComponentECDSA (Bitcoin)Dilithium (BTQ)Increase
Signature~71 bytes2,420 bytes34x
Public key33 bytes1,312 bytes40x
Typical transaction~250 bytes~3,800 bytes15x

A naive approach -- simply dropping Dilithium into Bitcoin's existing parameters -- would reduce throughput to a fraction of Bitcoin's already modest capacity. BTQ addresses this through a combination of larger blocks, faster block times, and an aggressive witness discount.

Block Capacity

Raw Capacity

BTQ's maximum block size is 8 MB (8,000,000 bytes serialized), compared to Bitcoin's 1 MB. This provides 8 times the raw byte capacity per block.

Effective Transaction Count

The actual number of transactions per block is limited by block weight, not raw byte size. With BTQ's witness scale factor of 16, a typical Dilithium transaction has a weight of approximately 5,550 weight units (113 bytes of non-witness data at 16 WU each, plus ~3,742 bytes of witness data at 1 WU each).

MetricBitcoin (1 MB, ECDSA)BTQ (8 MB, Dilithium)
Typical tx size~250 bytes~3,800 bytes
Typical tx weight~560 WU~5,550 WU
Transactions per block~4,000~1,400
Block time10 minutes1 minute
Transactions per hour~24,000~84,000

Despite each transaction being 15x larger, the combination of 8 MB blocks and 1-minute block times means BTQ processes roughly 3.5x more transactions per hour than Bitcoin.

The per-block transaction count is lower than Bitcoin's, but the per-hour throughput is significantly higher due to 1-minute blocks. For user experience, what matters is how quickly transactions confirm, not how many fit in a single block.

Throughput Analysis

Transactions Per Second

NetworkTx per blockBlock timeTx per second
Bitcoin~4,000600 sec~6.7
BTQ (Dilithium)~1,40060 sec~24
BTQ (ECDSA, if used)~14,00060 sec~233

BTQ's theoretical Dilithium throughput of ~24 transactions per second is roughly 3.5x Bitcoin's throughput. The actual throughput depends on the mix of transaction types and sizes.

Confirmation Latency

For end users, the most important metric is how long they wait for a transaction to be confirmed:

Confirmation LevelBitcoinBTQSpeedup
First confirmation~10 min~1 min10x
3 confirmations~30 min~3 min10x
6 confirmations~60 min~6 min10x

This 10x improvement in confirmation latency makes BTQ significantly more practical for everyday transactions.

The Witness Discount

How It Works

BTQ uses a witness scale factor of 16. When calculating a transaction's weight (which determines its share of block capacity and its fee), witness data is counted at 1/16th of its actual byte size.

For a typical Dilithium transaction:

Data CategoryRaw SizeWeight Contribution
Non-witness data (inputs, outputs, metadata)~100 bytes100 weight units
Witness data (signature + public key)~3,700 bytes~231 weight units
Total~3,800 bytes~331 weight units

Without the discount, the same transaction would weigh ~3,800 weight units, consuming over 10x more block capacity.

Why It Matters

The witness discount creates two critical incentives:

1. UTXO set health: The UTXO set is the collection of all unspent transaction outputs that nodes must keep in memory for fast validation. Witness data is NOT part of the UTXO set -- it is prunable after validation. By making witness data cheap, the protocol encourages transaction formats that keep large Dilithium keys and signatures out of the permanent UTXO set.

2. Practical fees: Without the discount, fees for Dilithium transactions would be proportional to their full ~3,800-byte size. The discount brings fees down to a level comparable to what users expect, making the network economically viable.

Comparison of Witness Scale Factors

The witness discount determines how much cheaper witness-format transactions are compared to legacy (non-witness) transactions. Higher scale factors create stronger incentives to use witness formats, which keeps large Dilithium data in the prunable witness section:

FactorLegacy Dilithium tx/blockWitness Dilithium tx/blockIncentive ratio
1 (no discount)~2,075~2,0751x (no incentive)
4 (Bitcoin's factor)~519~1,9073.7x cheaper to use witness
16 (BTQ's factor)~130~1,44111x cheaper to use witness

BTQ's 16x factor is larger than Bitcoin's 4x factor because Dilithium signatures are proportionally much larger than ECDSA signatures relative to the non-witness data. The stronger discount is necessary to make witness-format Dilithium transactions economically viable.

Verification Performance

One of Dilithium's advantages over ECDSA is faster verification:

OperationECDSADilithiumComparison
Key generation~0.1 ms~2 msDilithium slower (done once)
Signing~0.5 ms~3 msDilithium slower (done once per tx)
Verification~2 ms~1.5 msDilithium faster

Verification is the operation that matters most for network scalability because every node must verify every transaction in every block. A block with 2,100 Dilithium transactions requires roughly 3.15 seconds of verification time, compared to 8 seconds for 4,000 ECDSA transactions in a Bitcoin block. Verification is not the bottleneck.

Dilithium's faster verification partially compensates for its larger data size. The network spends less CPU time per transaction on signature verification than Bitcoin does, even though each transaction carries more data.

Bandwidth Considerations

Per-Block Bandwidth

NetworkMax block sizeBlock intervalPeak bandwidth
Bitcoin1 MB10 min~1.7 KB/sec
BTQ8 MB1 min~133 KB/sec

BTQ requires roughly 80x more bandwidth than Bitcoin at peak capacity. This is within the capabilities of modern internet connections but is a meaningful increase. Node operators should have at least a few megabits per second of bandwidth available.

Compact Block Relay

Like Bitcoin, BTQ uses compact block relay to reduce bandwidth during normal operation. Instead of transmitting full blocks, nodes exchange block headers and short transaction identifiers, reconstructing the block from transactions already in the mempool. This dramatically reduces actual bandwidth usage below the theoretical maximum.

Storage Requirements

Blockchain Growth

NetworkBlock sizeBlock intervalDaily growthAnnual growth
Bitcoin~1 MB avg10 min~144 MB~52 GB
BTQ (full blocks)~8 MB max1 min~11.5 GB~4.2 TB

At full capacity, BTQ's blockchain grows significantly faster than Bitcoin's. However:

  • Pruned nodes can discard old block data, keeping only the UTXO set and recent blocks
  • Witness data (the largest component) is prunable, with the witness discount encouraging its use
  • Average block utilization is typically well below the maximum, especially in early network life

UTXO Set Size

The UTXO set grows based on the number of unspent outputs, not on transaction or block size. Because Dilithium public keys are stored as 20-byte hashes in the UTXO set (not as full 1,312-byte keys), UTXO set growth is comparable to Bitcoin's despite larger transactions.

This is a direct result of the witness-based transaction format: the large data lives in the witness (prunable) while the UTXO set stores only compact hashes.

Future Optimizations

ML-DSA Tapscript (BIP360)

The v2 roadmap includes migrating Dilithium verification into Tapscript leaves, following the BIP360 proposal. This would further reduce the on-chain footprint by leveraging Taproot's key-path/script-path structure and placing all post-quantum data in witness space by default.

UTXO Consolidation

Mining pools that accumulate many small UTXOs can consolidate them during periods of low network activity. With 1-minute blocks, there are more opportunities for low-priority consolidation transactions to be included in blocks.

Signature Aggregation

Research into aggregating multiple Dilithium signatures into a single proof is ongoing in the cryptographic community. If practical aggregation schemes emerge, they could significantly reduce the per-transaction overhead for multi-input transactions.

Summary

ChallengeBTQ's Solution
15x larger transactions8 MB blocks + 1-minute block times
UTXO set growth16x witness discount, hash-based UTXO entries
Verification overheadDilithium verifies faster than ECDSA
Bandwidth requirementsCompact block relay, pruning support
Storage growthPruned nodes, witness data is discardable
Fee pressureWitness discount keeps fees practical

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