Hoolichain solving scalability and security

Hoolichain (HLI) is a new approach to solving one of the most
critical problems facing all blockchains today: scaling.
Low transaction speeds and excessive latency plague blockchain networks around the
world, preventing widespread practical adoption by businesses and consumers.
Hoolichain will solve this problem and meet true business needs by creating a platform
designed to handle millions of transactions per second. It will consist of both hardware
and software architecture, placing it ahead of current platforms which seek to solve the
same problem through software-only solutions.
With a target of 200000 TPS and a 3-second confirmation time, Hoolichain aims to become
the standard for all major business applications in industries that require handling of
billions of data points with extremely low latency.

1.2 Current Status of Blockchain Technology
Current major iterations of blockchain possess several problems:
TPS
Performance
• Transaction volume and applications are increasing
rapidly on current blockchains, making network
congestion a major issue
• Bitcoin, a legacy network, is confined to about 7 TPS.
Compared to Visa with an average TPS of 2,000 and a
maximum TPS of 50,000, it is extremely slow
• Even Lightning network aims for just 1,000 TPS, far
below existing industry standards
Poor Security
• Blockchains such as Ethereum have experienced security
breaches
• Community splits can lead to multiple hard forks,
leading to an increasingly splintered blockchain network
• There is still no real solution to a 51% network attack,
where a majority of mining resources are turned against
the network
High
Transaction
Fees
• Congestion in blockchain networks, especially during
high-load times and major events, leads to higher fees
• Block size can also lead to network latency and excessive
confirmation times, resulting in more expensive
transactions
Difficulty in
Developing
DAPPs
• Due to the above problems, developers have issues
creating optimized DAPPs for existing blockchain Network

Hoolichain Protocol Components

We begin our description of the Hooli network by defin-
ing the following terms:
• Server: A server is any entity running the Hooli
Server software (as opposed to the Hooli Client
software which only lets a user send and receive
funds), which participates in the consensus pro-
cess.
• Ledger: The ledger is a record of the amount
of currency in each user’s account and represents
the “ground truth” of the network. The ledger is
repeatedly updated with transactions that success-
fully pass through the consensus process.
• Last-Closed Ledger: The last-closed ledger is
the most recent ledger that has been ratified by the
consensus process and thus represents the current
state of the network.
• Open Ledger: The open ledger is the current
operating status of a node (each node maintains
its own open ledger). Transactions initiated by
end users of a given server are applied to the open
ledger of that server, but transactions are not con-
sidered final until they have passed through the
consensus process, at which point the open ledger
becomes the last-closed ledger.
• Unique Node List (UNL): Each server, s, main-
tains a unique node list, which is a set of other
servers that s queries when determining consen-
sus. Only the votes of the other members of the
UNL of s are considered when determining con-
sensus (as opposed to every node on the network).
Thus the UNL represents a subset of the network
which when taken collectively, is “trusted” by s
to not collude in an attempt to defraud the net-
work. Note that this definition of “trust” does not
require that each individual member of the UNL
be trusted .
• Proposer: Any server can broadcast transactions
to be included in the consensus process, and every
server attempts to include every valid transaction
when a new consensus round starts. During the
consensus process, however, only proposals from
servers on the UNL of a server s are considered
by s.

Formalization

We use the term nonfaulty to refer to nodes in the net-
work that behave honestly and without error. Conversely,
a faulty node is one which experiences errors which may
be honest (due to data corruption, implementation er-
rors, etc.), or malicious (Byzantine errors). We reduce
the notion of validating a transaction to a simple binary
decision problem: each node must decide from the in-
formation it has been given on the value 0 or 1.
As in Attiya, Dolev, and Gill, 1984 [3], we define
consensus according to the following three axioms:
1. (C1): Every nonfaulty node makes a decision in
finite time
2. (C2): All nonfaulty nodes reach the same deci-
sion value
3. (C3): 0 and 1 are both possible values for all non-
faulty nodes. (This removes the trivial solution
in which all nodes decide 0 or 1 regardless of the
information they have been presented).

Summary & Outlook

Throughout the Hoolichain design process, we thank not only the work of the Hoolichain team, but
also the contributions and funding of partners, developer communities, and industry
organizations. We are very honored to receive the recognition and support of partners.
At present, various industrial companies have shown active cooperative intentions in
anti-counterfeit traceability, smart big data, and gaming industries.
We would like to express gratitude towards future participants in the development of the
Hoolichain architecture, the technology community, business partners and blockchain industry
experts. We also sincerely invite technical and business partners to take part in the
common cause of development of an open source.