MIT researchers have claimed to develop a new cryptocurrency that requires an astounding 99% less space than Bitcoin to store data. The cryptocurrency, dubbed Vault, is based on Proof of Stake, a concept that is resource efficient and requires little energy to process.
According to the MIT developers, Vault will be deployed within this year. Ethereum’s current estimate to shift from PoW to PoS is roughly between 2019 and 2021. For some, the race to become the first cryptocurrency that purely uses a highly-efficient PoS algorithm is on.
Vault takes advantage of being built with PoS in mind, with a team that is from the finest technical institution in the world. Ethereum, frequently battling with Ripple (XRP) for the position of the second largest cryptocurrency, has long planned of shifting to PoS, but till now has not been able to do so, citing upgrade issues.
The issue faced by Ethereum is called the Trilemma, a concept proposed by its founder, Vitalik Buterin. The three-pronged dilemma says that only two of three characters can be achieved by any cryptocurrency: security, scalability and decentralization. Indeed, no cryptocurrency has ever been able to achieve all three. Even Ethereum has plans involving several steps to solve this issue. This includes the transition to PoS and development of layer 1 and layer 2 Ethereum.
Silvio Micali, a professor at MIT, claims to have found the solution. Using a fragmented Merkle Tree, it will allow nodes to store only data from the fragmented line. This would allow completing of transactions without downloading the complete data history of the blockchain. For situations where the transaction is from one fragment of the Merkle Tree to another, a special method will be used to search for nodes that intersect both the fragments.
Vault’s technology and method are seemingly sound, but it still has to prove it. Ethereum, on the other hand, still has to complete the migration process.
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