BitMex awards its last developer grant to a Bitcoin scalability solution from MIT

One can find a variety of cryptocurrencies in different countries. To monitor the same is much needed now, and that is why there are experts who come forward to offer various solutions for its scalability. One more such expert has been rewarded for his effort and perfect solution. The BitMex’s 100x Group has been awarded to Calvin Kim for the Boitcoin development with scalability solution. He gets $40000 as rewards for his solution Utreexo. This protocol is unique when it comes to handling security concerns of transactions. It checks that the sender has enough coins before processing the request. If the user has any unspent BTC, it will be saved as UTXO. This will be beneficial when the user has to send any data about the availability of funds in the account.

The entire Bitcoin blockchain is around 300GB, and the UTXO is around 4GB. Researchers from MIT are of the opinion that as the network grows in the future, this may present a bottleneck situation.

How does it work?

In this case, the sender maintains the data of UTXO with himself, and this is proof that there are enough funds in the account for a particular transaction. If any evidence is required to show the balance in the account, the validity can be presented in the form of a hash, which takes up less space when compared to the complete data. In this way, better security can be achieved, and it can be scaled to any level in the long run.

What are experts saying?

However, experts believe that any sort of scalable solutions that work by replacing full nodes with hashes can lead to problems in the long run. They fear that it may cause instability due to some reasons, and they feel it is better to avoid such concepts. The general belief is that all data should be sent during the transaction so that they can be validated from any end in the future if it is required.

As the Blockchain technology itself is still new, such options to speed up the process may not be accepted in the initial stages itself. However, considering the benefits it can offer to improve transaction speed in the long run, it may be useful in the future. It would be interesting to see how other market players react to such innovative concepts in the blockchain domain.