Cryptocurrency purists are of the opinion that the lack of speed in transaction processes is Bitcoin’s biggest drawback. But the fun part of this strong criticism is that they believe they could just have the solution for it: Unit-e cryptocurrency! Their ambitious plan is to program this decentralized ledger technology asset to process 10,000 transactions per second or greater.
Critics of the current liability of Bitcoin are technical experts from some of the best academic institutions. That they are coming together to build a cryptocurrency is something remarkable since it was unthinkable even a few years ago considering the lack of trust in such digitized virtual currencies!
The venture will be executed by a non-profit group, with financial backing from Pantera Capital, a hedge fund company. The participating colleges include reputed universities such as Stanford University, Berkeley as well as the University of California.
The non-profit, named Distributed Technology Research (DTR) was formed to build decentralized technology products. The first product to be developed by this august body is the earlier named cryptocurrency Unit-e.
DTR has scheduled the release of its debutante asset for the second-half of 2019.
The novelty in the case of Unit-e is its likely transaction power of 10,000 per second, as against 3.3 to 7 transactions per second for Bitcoin. The only other cryptocurrency which has higher speeds is Ethereum which has the processing power of 10 and 30 transactions in a second.
In other comparisons, VISA the payment card for fiat-currency and hence is a centralized network caps 1, 7000 transactions every second.
However, the issue with Bitcoin’s speed is the design rationale. The frequency of formation of a new block, maximum size is all capped at the pre-programming stage thus not allowing the whole process to gather speed or momentum even when scaling to the abnormal number of new blocks.
DTR hopes to circumvent the issues of scalability as well as speed as experienced by the Bitcoin blockchain network. A design technique which DTR is likely to explore is – sharding- or the process where the node will contain just immediate part of the blockchain and the entire network as is part of the current network practices. Such a method will increase the speed and create new payment channel networks which will achieve target speed.
Other organizations exploring the same issues of scalability and speed are the Lightning Network, Segwit.
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