MIT Reveals its New Cryptocurrency, Claims to Reduce Data Needs by 99%
A new cryptocurrency was recently unveiled by Massachusetts Institute of Technology (MIT) researches which claims to reduce the data needed to join the network and verify transactions by up to 99% compared to other popular cryptos.
The new cryptocurrency named Vault is designed to be faster and more scalable.
The Scalability Problems of Decentralization
One common problem that decentralized currencies have faced is scalability, as to join a cryptocurrency, a user must download and store all transaction data from thousands of individual blocks.
Users must also store the data to use the services and help with verification of transactions. MIT states that the process, therefore, is slow and impractical for some people.
Vault, the new cryptocurrency by MIT claims to solve these problems by allowing users to download only a fraction of the total transaction data.
It will be introduced formally to the world at the Network and Distributed System Security Symposium next month.
Vault will come with a technique to delete empty accounts which take up space and allows verification with only the most recent transaction data, therefore, minimizing the processing and data storage requirements of a user.
The MIT News Office reports:
“In experiments, Vault reduced the bandwidth for joining its network by 99 percent compared to Bitcoin and 90 percent compared to Ethereum, which is considered one of today’s most efficient cryptocurrencies. Importantly, Vault still ensures that all nodes validate all transactions, providing tight security equal to its existing counterparts.”
What Else Does Vault Offer?
According to Derek Leun, co-author and graduate student of the Computer Science and Artificial Intelligence Laboratory (CSAIL), cryptocurrencies are approaching bottlenecks because of storage issues.
He says the goal of Vault is to create a cryptocurrency that can scale well for more users.
CSAIL researcher Yossi Gilad and Nickolai Zeldovich, a professor in the Department of Electrical Engineering and Computer Science (EECS) have also worked on the project.
With Vault, a block contains up to 10 MB of data or 10,000 transactions.
It is built on top of a newer, more secure and more scalable crypto network called Algorand invented by Silvio Micali, the Ford Professor of Engineering at MIT.
Algorand uses a Proof of Stake (PoS) consensus algorithm.
Vault also comes with a new sharding scheme allowing individual users to store and process small bits of data when verifying transactions.
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