Blockchain networks offer decentralization, transparency, and immutability for managing critical data but encounter scalability problems as the number of network members and transaction issuers grows. Sharding is considered a promising solution to enhance blockchain scalability. However, most existing blockchain sharding techniques prioritize performance at the cost of availability (e.g., a failure in a few servers holding a shard leads to data unavailability). In this paper, we propose PyloChain, a hierarchical sharded blockchain that balances availability and performance. PyloChain consists of multiple lower-level local chains and one higher-level main chain. Each local chain speculatively executes local transactions to achieve high parallelism across multiple local chains. The main chain leverages a directed-acyclic-graph (DAG)-based mempool to guarantee local block availability and to enable efficient Byzantine Fault Tolerance (BFT) consensus to execute global (or cross-shard) transactions within a collocated sharding. PyloChain speculatively executes local transactions across multiple local chains to achieve high parallelism. In order to reduce the number of aborted local transactions, PyloChain applies a simple scheduling technique to handle global transactions in the main chain. PyloChain provides a fine-grained auditing mechanism to mitigate faulty higher-level members by externalizing main chain operations to lower-level local members. We implemented and evaluated PyloChain, demonstrating its performance scalability with 1.49x higher throughput and 2.63x faster latency compared to the state-of-the-art balanced hierarchical sharded blockchain.

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