This solution paper is a sequel to my earlier post on reddit Bitcoin-SV: are terabyte blocks feasible?, I recommend reading that article first as it deals with requirements scoping & feasibility before continuing this paper.
- A node, alongside its mempool, now maintains a 'stateful' index of unconfirmed transactions exchanged with each of its peers. So each node maintains a map of seqNo<->transactionIDs for every active peer connection.
- Currently when a miner succeeds in the mining attempt, i.e. the nonce that produces the hash less than the network difficulty it transmits the entire contents of the block (legacy or Compact blocks BIP-152) to its peers.
- In this proposal the miner can efficiently (in space & time) transmit a packed block containing the sequence of indices to its peer.
- The peer unpacks the block, effectively reconstructing