The researchers at the Massachusetts Institute of Technology (MIT) have developed a new kind of cryptocurrency that considerably reduces the need of the users to join a network, besides verifying the transactions up to 99% compared to the other currently popular cryptocurrencies. Just so you know, cryptocurrencies work on the network mechanism built around blockchain technology which, in turn, is a list of blocks containing the information of transactional data. Currently, a new user has to download and must store all the information related to transaction data of other users to join a cryptocurrency. This is mandated for the use of the service and also to verify the other transactions in the network. No doubt, these requirements make the transactions safe and secure; however, the large amount of data make the process slower and even impractical for many of the users.
To get around the problem of large data and slow processing, MIT researchers will be presenting a paper at the upcoming symposium on Network and Distributed System Security and introducing the new cryptocurrency called Vault. Vault is unique in the sense that it allows the user to join the network without the need of downloading the entire transactional data. A user can become part of the Vault by downloading just a fraction of the data which will reduce the data processing load; thereby making the process faster and convenient. Besides, the cryptocurrency also has a technique for deleting the empty accounts which usually eat up a lot of space. Vault allows the process of transaction data verification with the most recent transactions which help to reduce the data requirement and processing time.
When compared to the popular cryptocurrencies, Vault has shown a significant reduction in the bandwidth required for joining the network. Against Bitcoin, Vault reduces bandwidth requirement for network joining by 99%, and against the Ethereum, the reduction in bandwidth is up to the tune of 90%. This reduction hasn’t come at the cost of security with Vault ensuring that the transactions get validated by all the nodes. The cryptocurrency network behind the Vault has been christened “Algorand” and according to the researchers, it is decentralized, secure, and more importantly, scalable than the networks of other digital currencies.