Hey ninjas, how’s the trading going? On the day, the top 20 cryptocurrencies are reporting daily losses. The largest cryptocurrency Bitcoin (BTC) is down 1.66% in the last 24 hours and is trading at $9.284 at press time.
According to an announcement made on the 30th of January, the researchers at the Massachusetts Institute of Technology have created a new routing scheme to shorten the time it takes to complete blockchain transactions.
The institute claimed that the new routing scheme called payment channel networks (PCN) will not only reduce the amount of time it takes to complete a blockchain transaction, it will also increase profit.
MIT explained that blockchain will only be used to establish and close account to speed up the process, the process involves the use of blockchain escrow accounts with a dedicated amount of money to form a large network of interconnected joint accounts. Users will route the payment through these accounts and a tiny fee will be collected by the accounts when transactions are routed through them.
The announcement further explains that the payment can only be routed through channels with sufficient funds for the transaction, unlike traditional methods that use the shortest path and do not consider the user’s balance. The researchers at MIT also introduced a technique known as “spider” that splits full transactions into smaller packets.