Yonatan Sompolinsky, Ethan Hileman and Yoad Lewenberg are working on a cryptocurrency project that is expected to be released in 2018. The three have a lot of experience in the field with both Yoad Lewenberg and Yonatan Sompolinsky being the co-authors of the SPECTRE protocol and Ethan Hileman having been involved in TumbleBit technology. The team also comprises of Guy Corem, former CEO of Spondoolies-Tech.
The founders believe that their new technology will be faster and efficient. They will also be the first to use the direct acyclic graph technology (DAG) for cryptocurrency.
Bitcoins’ capacity levels
Bitcoin, just like anything new, has received its fair share of critic along the way. One of the most important arguments behind the Bitcoin debate has always revolved around its capacity levels. Many experts have often tried to come up with solutions in a manner that did not change or update the first layer of the system. Sompolinsky however thought differently. His solution involved increasing the on-chain scalability of the currency.
His new innovation is set to test this line of thinking. The project’s use of DAG technology will make it among the few that have ever tried to scale up the first layer. He believes that his system will not only have fast confirmation but that it will also feature low fees.
How it works
Bitcoin utilizes the Blockchain technology in order for it to be transferred. Blockchain works by ordering transactions into blocks and then selecting one to add to the chain. However, unlike other technologies like ethereum which takes 12 seconds for the blocks to be formed, the SPECTRE protocol takes around 10 seconds for the blocks to be formed for each transaction.
The blocks are then referenced on the DAG before many interwoven blocks are formed. Miners are then used to “vote” for the most valid transaction which then leads to the selection of the most inter-referential block graph.
Since this system demands that a high number of transactions have to be done on the network, this means that the transaction history won’t be permanently stored. Once a transaction has been validated it will be deleted from the network.
While the proposed protocol does indeed sound as a better one, there are certain problems that will definitely occur. One of these problems includes the bandwidth restrictions and congestions. The team intends to fix this problem by borrowing from the ethereum system. They will incorporate an incentive or rewards system which encourages all agents to behave in the right manner.
The project is still under development and the final protocol is slated to be released in an upcoming paper known as SPECTRE2. The new cryptocurrency will be released by winter and ongoing updates on the system will take precedence afterwards.
Among the things that the founders want to incorporate into the final infrastructure of the cryptocurrency include its merge with MimbleWimble (a private cryptocurrency which has caused a lot of excitement in the cryptocurrency community) as well as merged mining. The latter is an ambitious project that will allow DAG infrastructure to facilitate mining of different cryptocurrencies simultaneously.
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