  Blockchains have shown great promise as peer-to-peer digital currency systems
over the past 10 years. However, with increased popularity, the demand for
processing transactions has also grown leading to increased costs, confirmation
times, and limited blockchain utility. There have been a number of proposals on
how to scale blockchains, such as Plasma, Polkadot, Elastico, RapidChain,
Bitcoin-NG, and OmniLedger. These solutions all propose the segmentation of
every function of a blockchain, namely consensus, permanent data storage,
transaction processing, and consistency, which significantly increases the
complexity and difficulty of implementation. BlockReduce is a new blockchain
structure which only segments consistency, allowing it to scale to handle tens
of thousands of transactions per second without impacting fault tolerance or
decentralization. Moreover, BlockReduce will significantly decrease node
bandwidth requirements and network latency through incentives while
simultaneously minimizing other resource demands in order to prevent
centralization of nodes.
