Experts have been working on a cryptocurrency for some time, which, they say, could take the place of Bitcoin. It is expected to be released during the second half of this year under the name of Unit-e. Its creators say that the cryptocurrency will be able to maintain the decentralization offered by Bitcoin, but, at the same time, operations can be carried out at a higher speed. The new digital currency created in the United States will be able to process up to 10,000 transactions per second, surpassing the Bitcoin network and other cryptocurrencies with a very marked difference.
What is Unit-e?
Researchers and professors from the Massachusetts Institute of Technology (MIT), Stanford University and Berkeley University, Carnegie Mellon University, the University of Southern California and the University of Washington, are working on a new cryptocurrency that promises improved features on Bitcoin transaction processing and cryptocurrencies with better performance in this regard.
The researchers are working together under the funding of Distributed Technology Research (DTR), a nonprofit foundation made up of academics and backed by Pantera Capital, and their intention is to launch this new cryptocurrency in the second half of 2019.
Currently, the Bitcoin network can process from 3.3 to 7 transactions per second, and Ethereum from 10 to 30. That is, in terms of speed, current cryptocurrencies are far behind traditional payment systems.
As we mentioned before, DTR reports that its cryptocurrency will be able to perform 10,000 transactions per second, which multiplies 5 times at 2,000 transactions per second on average offered by VISA.
The main problem of Bitcoin and one of the biggest causes for which adoption has not been achieved is scalability. It is directly associated with its technological characteristics, the frequency with which new blocks can be created and their maximum size limitations.
Is it possible to improve scalability as proposed by Unit-e?
There are several initiatives underway to increase the speed of transactions. One of these solutions is the Lightning Network, which effectively acts as a second layer by creating channels between nodes, eliminating the need for each transaction to register in the blockchain.
Last December, Bitcoin’s Lightning Network capacity exceeded USD 2 million in transactions, with Lightning Network compatible node channels capable of facilitating 496.8 BTC. With that, the number of channels connecting the nodes has also increased significantly.
The post-trading financial services firm Depository Trust & Clearing Corporation published a study that found that blockchain technology is scalable enough to support the daily volumes of stock markets such as the United States.
The creators have years of experience in the field of Blockchain development, varied backgrounds in cryptography and systems engineering, where some of them have already published research in this regard.
The DTR team analyzed the performance limits of the blockchain to design technologies that work as close as possible to these limits, redesigning the Blockchain technology that supports most cryptocurrencies and seeking to make improvements in different elements, said Pramod Viswanath, Project researcher and professor of electrical and computer engineering at the University of Illinois at Urbana-Champaign.
To achieve greater speed and scalability, they developed a ‘fragmentation’ method that allows each node to maintain only a part of the Blockchain. His idea is based on incorporating networks of separate and fragmented payment channels to help the speed of transactions. In this way the team expects Unit-e to fulfill its promise to substantially exceed any other payment network.
In their publication ‘Decentralized Payment Systems: Principles and Design’, they describe in detail what this new cryptocurrency consists of.
Direct impact on the market.
Once the scalability proposed by the project was achieved, it would have a great impact not only on the crypto market but also on international trade, consolidating itself as the fastest payment processor in the world and that could be the beginning of the long-awaited adoption.
Unit-e is also designed to incorporate smart contracts, making it a direct competitor of Ethereum in addition to Bitcoin and XRP.
There are high expectations on the part of investors towards a project that seeks to overcome a challenge as large as the scalability of cryptocurrencies to expand its use, which can lead to a significant price increase at the beginning, and that it will surely be able to maintain over time.