Hierarchical Structure

Detailed specification of Qai Network’s hierarchical structure.

The Scaling Challenge

Traditional blockchains face an impossible choice: stay small and secure, or grow large and vulnerable. Qai’s hierarchical structure breaks this limitation.The Innovation: Imagine a tree where every branch processes transactions independently, but the trunk ensures all branches stay secure. That’s Qai’s hierarchical structure - multiple blockchain “branches” working in parallel while sharing the security of the entire “tree.”

How It Works

Three Levels of Organization:

  1. Prime Chain (The Trunk): Coordinates the entire network

  2. Region Chains (Main Branches): Organize geographical areas

  3. Zone Chains (Leaves): Process your actual transactions

The Key Breakthrough:

  • Traditional sharding: Splits security (dangerous)

  • Qai’s approach: Splits only workload (safe)

Each zone processes transactions independently while maintaining the full security of the entire network through merged mining.

Why This Matters

For Users:

  • 50,000+ TPS: Process more transactions than Visa

  • Sub-penny fees: Sustainable even at massive scale

  • 5-second blocks: Near-instant transaction confirmation

  • Global scale: Ready for billions of users

For the Network:

  • Unlimited growth: Add new zones as demand increases

  • Maintained security: Every zone has full network protection

  • Optimized performance: Miners self-organize for best efficiency

The Security Innovation

Traditional Sharding Problem: When blockchains split into shards, each shard typically gets only a fraction of the security. A network with 10 shards might give each shard only 10% of total security - making them vulnerable to attacks.Qai’s Solution: Through merged mining, every transaction in every zone receives 100% of the network’s security. This maintains the full hash-based security guarantees while allowing unlimited parallel processing.

Self-Optimizing Performance

The Latency Problem: Network latency - the time it takes for data to travel between nodes - is the primary bottleneck in blockchain performance.Qai’s Unique Solution: Miners naturally organize themselves for optimal performance because:

  1. Higher latency = Lower profits (more uncle blocks)

  2. Miners choose their zone based on best connection

  3. Result: Geographic self-organization without central planning

The Math Behind the Improvement:This relationship is described by t = pnlog_m(n) where:

  • t = time to propagation

  • p = ping time between nodes

  • n = number of nodes in the network

  • m = average number of connected peers

Real-World Example:

  • Bitcoin: 8 hops × 100ms ping = 800ms total propagation time

  • Qai zones: 3 hops × 10ms ping = 30ms total propagation time

  • Improvement: 25x faster data propagation

This self-organizing system creates naturally optimized regional networks without any central coordination.

Parallel Processing Power

Think of Qai as a multi-core processor for blockchains. Each zone chain operates like an independent CPU core, processing transactions in parallel while staying perfectly synchronized.How Chains Work Together:

  • Independent operation: Each zone produces blocks on its own schedule

  • Perfect coordination: Hash linked references keep all chains in sync

  • Atomic operations: Cross-chain transactions either complete fully or not at all

The Three-Tier Architecture:

Chain Type
Level in Hierarchy
% of Network Hashrate
Block Time†

Prime

1 (top)

100%

~20s

Region

2 (middle)

~33%

~10s

Zone

3 (bottom)

~11%

~5s

Block production in Qai Network is a stochastic process, meaning that real-world block times will have minor variance. These times are calculated for a 2×2 network configuration (2 regions, 2 zones per region, 4 total zones).

Starting Simple: Single Shard Launch

Why Start with One? Qai Network launches with a single zone chain because adding unnecessary shards would:

  • Reduce aggregate security: Splitting hashrate when not needed

  • Increase settlement times: More complexity without benefit

  • Waste resources: Running infrastructure for unused capacity

Automatic Expansion Trigger: When sustained demand causes the uncle rate to exceed 20% for an extended period, the network automatically expands by adding new shards. This ensures optimal security and performance at every stage of growth.

Prime Chain: The Global Coordinator

Purpose: Acts as the network’s backbone, ensuring all regions stay synchronized (when multiple exist)

  • Security: Mined by 100% of network hashrate for maximum security

  • Function: Pure coordination - no transactions or accounts

  • Role: Becomes active when network expands beyond single shard

Region Chains: Geographic Organization

Purpose: Organize zones within geographical areas for optimal performance (activated during expansion)

  • Security: Each region gets ~1/N of total hashrate (where N = number of regions)

  • Function: Coordinate zone chains within their region

  • Activation: Created when network demand triggers expansion

Zone Chains: Where Transactions Happen

Purpose: The actual workhorses - processing all user transactions

  • Speed: 5-second average block times for near-instant confirmations

  • Function: The only chains that store accounts and process transactions

  • Initial state: Network launches with one zone chain

  • Expansion: Additional zones added based on demand

Each zone operates as an independent execution thread. As the network grows, this creates a truly multithreaded blockchain environment.

Cross-Chain Communication

The Innovation: Through coincident blocks, Quai creates natural bridges between all chains in the network. These hash linked references enable trustless cross-chain transactions without any additional infrastructure.How It Works:

  • Automatic creation: Merged mining naturally produces these connections

  • Zero overhead: No extra work required from miners

  • Trustless transfers: Move assets between chains without intermediaries

  • Atomic operations: Cross-chain transactions complete fully or not at all

This represents the first truly decentralized bridge between hash-based blockchains, enabling seamless interoperability across the entire network.

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