Optimized blockchain transaction processing with Bitcoin-Lite: Performance-oriented Python implementation

Abstract: Blockchain technology has revolutionized the way transactions are conducted, ensuring security, transparency, and efficiency. However, the complexity and computational overhead associated with traditional blockchain implementations can hinder their adoption and scalability. To address these challenges, we introduce Bitcoin-Lite, a simplified and optimized blockchain transaction system implemented in Python using Cython. Blockchain technology relies on a decentralized ledger to record transactions, which are verified through complex cryptographic algorithms and consensus mechanisms. While full-fledged blockchain implementations like Bitcoin and Ethereum are robust, they are often cumbersome for educational and research purposes due to their complexity and resource-intensive nature. Previous works have focused on simplifying blockchain concepts through educational tools and simulations, but these often lack the performance optimization necessary for real-world applications. This paper presents Bitcoin-Lite, a Python-based package designed to simulate and optimize blockchain transaction processing. Bitcoin-Lite offers a streamlined framework for understanding and experimenting with blockchain principles by using Cython for performance enhancements. We discuss the architecture transations, performance metrics, and scientific applications, highlighting how these could suitable for educational, research, and developmental purposes. The paper also outlines potential improvements and future directions for the package.