Alphabill is based on a theory of decomposition. There is no bottleneck in the network and computational resources can be added indefinitely—the system as a whole scales linearly (production and verification) without sacrificing security or performance.
To implement this design, Alphabill introduces four innovations:
New transaction unit: unspent transaction outputs (UTXOs) and accounts do not allow parallel decomposition. The Alphabill blockchain is based on bills (similar to physical cash bills). The state tree in Alphabill is implemented with new data structures that allow for assets to be updated and verified in parallel.
State tree recursion: the state tree is built recursively allowing for independently verifiable blockchains to be extracted for each individual token. This allows tokens minted on the blockchain to be verifiable and actionable off-chain in the real world.
New consensus model: Alphabill has a single consensus instance across the network such that deterministic finality is achieved across the network within one block.
New computational model: assets can be locked using predicates similar to Bitcoin locking scripts, and a certified messaging model is used to allow users to pass proofs across different parts of the network.