3.5.6 Smart Transactions

The following text provides a preliminary description of the approach to implementing smart transactions in DGT, which is anticipated by Athabasca. Please note that the implementation details may be subject to further clarification and the information provided is intended for informational purposes only.

Smart Transactions in the context of DGT refer to a powerful and flexible transaction framework that incorporates various features to enhance transaction capabilities and enable advanced functionalities. The concept encompasses the following key elements:

• Re-programmable Interface (Parametrization): Smart Transactions in DGT allow for a re-programmable interface, enabling users to customize and parameterize their transactions according to their specific needs. This flexibility allows for dynamic adjustment of transaction behavior and execution based on user-defined parameters.

• Prioritization Engine: DGT incorporates a prioritization engine that determines the order in which transactions are processed based on predefined criteria. This engine takes into account factors such as transaction type, urgency, complexity, and other relevant parameters to optimize transaction execution and ensure efficient processing.

• Chained Validation: To enhance security and efficiency, DGT implements chained validation mechanisms such as Pipelining or a Three-Chain mode for consensus algorithms like HotStuff. These validation approaches allow for parallel processing and verification of transactions, enabling faster transaction confirmation and reducing the overall transaction processing time.

• Multi-Signature and Private Transactions: DGT supports multi-signature transactions, which require the authorization of multiple parties before a transaction can be executed. This feature enhances security and enables collaborative decision-making for sensitive transactions. Additionally, DGT provides capabilities for private transactions, allowing users to protect the privacy and confidentiality of transaction details by using advanced cryptographic techniques such as shielded addresses or zero-knowledge proofs.

• Additional Features with DAG: DGT leverages the benefits of Directed Acyclic Graph (DAG) structures in its transaction framework. DAG-based features allow for efficient transaction propagation, parallel processing, and improved scalability. The use of DAG structures enables high throughput, low latency, and better handling of complex transaction dependencies.

Smart Transactions in DGT play a crucial role in reducing communication complexity, improving latency, and enhancing transaction finality. Here's how they contribute to these aspects:

• Decreased Communication Complexity: Smart Transactions allow for the bundling of multiple transactions into a single batch or package. This bundling reduces the number of individual transactions that need to be communicated and processed separately, thereby minimizing the overall communication complexity. By reducing the number of communication rounds, the efficiency of transaction processing is significantly improved.

• Improved Latency: With the ability to parameterize and prioritize transactions, Smart Transactions enable the optimization of transaction execution and resource allocation. Users can define transaction parameters such as urgency, importance, or preferred processing speed, which allows the system to allocate resources accordingly and expedite the processing of critical transactions. This optimization results in reduced transaction latency and faster transaction confirmations.

• Enhanced Finality: Smart Transactions leverage advanced consensus mechanisms such as the three-chain mode for HotStuff or other efficient consensus algorithms. These mechanisms ensure that transactions undergo robust validation processes, with multiple stages of verification and agreement. By incorporating chained validation and prioritization, Smart Transactions increase the finality of transactions, providing a higher level of confidence in their accuracy and integrity.