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New Cryptocurrency Developed by MIT Researchers is Way More Faster, Efficient

The researchers built their system on top of a new cryptocurrency network called Algorand, which is secure, decentralised, and more scalable than other cryptocurrencies

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Avoid making decisions based on emotions and find reliable sources for information as it will become a trader’s best asset.
Avoid making decisions based on emotions and find reliable sources for information as it will become a trader’s best asset.

MIT researchers have developed a new cryptocurrency that drastically reduces the data users need to join the network and verify transactions by up to 99 per cent compared to the current popular cryptocurrencies.

Cryptocurrencies, such as the popular Bitcoin, are networks built on the blockchain, a financial ledger formatted in a sequence of individual blocks, each containing transaction data.

To join a cryptocurrency, new users must download and store all transaction data from hundreds of thousands of individual blocks. They must also store these data to use the service and help verify transactions. This makes the process slow or computationally impractical for some.

In a paper to be presented at the forthcoming Network and Distributed System Security Symposium, the researchers introduced Vault — a cryptocurrency that lets users join the network by downloading only a fraction of the total transaction data.

It also incorporates techniques that delete empty accounts that take up space, and enables verifications using only the most recent transaction data that are divided and shared across the network, minimising an individual user’s data storage and processing requirements.

“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,” said Derek Leung, a graduate student in the Computer Science and Artificial Intelligence Laboratory (CSAIL) at the MIT.

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Transactions in cryptocurrencies occur the same way that you make transactions using any other fiat currency. pixabay

“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.”

In experiments, Vault reduced the bandwidth for joining its network by 99 per cent when compared to Bitcoin and 90 per cent when compared to Ethereum, which is considered one of today’s most efficient cryptocurrencies.

Also Read- Researchers Feels Cyber Attacks Are Outpacing Physical Terror Attacks

Importantly, Vault still ensures that all nodes validate all transactions, providing tight security equal to its existing counterparts.

The researchers built their system on top of a new cryptocurrency network called Algorand, which is secure, decentralised, and more scalable than other cryptocurrencies. (IANS)

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Facebook to Come Up with Global Cryptocurrency “Libra” in 2020, Powered by Blockchain Technology

The new digital wallet for Libra will be available in Facebook Messenger, WhatsApp and as a standalone app in 2020, the company said in a statement

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Facebook said it is still early in the process of developing Calibra and would consult experts to make the product safe and private. Pixabay

Amid intense calls to break it down as the company has grown too big, Facebook on Tuesday announced its own digital wallet subsidiary called “Calibra” for its global cryptocurrency “Libra” which would be powered by Blockchain technology.

The new digital wallet for Libra will be available in Facebook Messenger, WhatsApp and as a standalone app in 2020, the company said in a statement. Facebook currently generates 99 per cent of its revenue from advertisements and its own digital currency would help it reach billions of its users across products, creating another stable revenue stream.

“Today we’re sharing plans for Calibra, a newly-formed Facebook subsidiary whose goal is to provide financial services that will let people access and participate in the Libra network,” said Facebook. From the beginning, Calibra will let users send Libra to almost anyone with a smartphone, as easily and instantly as they send a text message and at low to no cost.

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Bitcoin Cryptocurrency. Pixabay

“In time, we hope to offer additional services for people and businesses, like paying bills with the push of a button, buying a cup of coffee with the scan of a code or riding your local public transit without needing to carry cash or a metro pass,” said the social media giant which is facing intense scrutiny over users’ privacy violations.

Facebook said Calibra will have strong protections in place to keep your money and your information safe. “We’ll be using all the same verification and anti-fraud processes that banks and credit cards use, and we’ll have automated systems that will proactively monitor activity to detect and prevent fraudulent behaviourm” explained the company.

It said it would also offer dedicated live support to help if a user loses the phone or password — and if someone fraudulently gains access to the account and the user loses some Libra as a result, Facebook would offer a “refund”.

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Facebook said Calibra will have strong protections in place to keep your money and your information safe. Pixabay

Aside from limited cases, Calibra will not share account information or financial data with Facebook or any third party without customer consent, claimed the company. “This means Calibra customers’ account information and financial data will not be used to improve ad targeting on the Facebook family of products.

ALSO READ: Facebook Rolls Out an Update to Rank Comments on Public Posts to Make Conversations Meaningful

“The limited cases where this data may be shared reflect our need to keep people safe, comply with the law and provide basic functionality to the people who use Calibra. Calibra will use Facebook data to comply with the law, secure customers’ accounts, mitigate risk and prevent criminal activity,” the company explained.

Facebook said it is still early in the process of developing Calibra and would consult experts to make the product safe and private. (IANS)