Bitcoin Could Soon Lose its High-Efficiency Status
January 28, 2019 2:05 pm
Researchers at Massachusetts Institute of Technology (MIT) have created a new cryptocurrency that reduces the data users require to join the network and carry out the transaction by almost 99 percent compared to the existing famous cryptocurrencies.
As many of us are aware, cryptocurrencies are networks built on the blockchain, a financial ledger based on a sequence of individual blocks, each of such blocks holds transaction data.
New Users need to download and store all the transaction data from thousands of individual blocks, to join a cryptocurrency. Furthermore, they must store such data for using the service and verifying transactions. Such a transaction process is tedious and slow.
The MIT researchers have introduced Vault, a cryptocurrency that allows users to join the network by downloading only a small part of the total transaction data. It is equipped with techniques which eliminate empty accounts that encroach space. The verification can take place only by using the most recent transaction data that are divided and shared across the network. Such features minimize a user’s data storage and processing requirements.
Derek Leung, who is an MIT graduate student in the Computer Science and Artificial intelligence Laboratory (CSAIL), said,
“The paper title is a pun. A vault is a place where you can store money, but the blockchain also lets you ‘vault’ over blocks when joining a network. When I’m bootstrapping, I only need a block from way in the past to verify a block way in the future. I can skip over all blocks in between, which saves us a lot of bandwidth.”
The experiments indicated that Vault decreased the bandwidth requirement for joining its network by 99 percent as compared to Bitcoin, and 90 compared to Ethereum, which is considered one of the most efficient cryptocurrency. The important fact is that Vault ensures node validated transactions.
The researchers developed Vault on a new crypto network called Algorand, which is secure, decentralized and more scalable compared to other cryptocurrencies.