MIT ‘Spider’ Routing Scheme Could Speed Up Cryptocurrency Transactions

Researchers at the Massachusetts Institute of Technology have created a new cryptocurrency-routing scheme to speed up blockchain-based transactions.

In an announcement  on Jan. 30, MIT claimed that the new solution called “payment channel networks” (PCN) is able to notably reduce blockchain-based transaction times and even boost profits. 

As explained, in PCN, transactions are performed with minimal involvement from the blockchain. “Pairs of PCN users form off-blockchain escrow accounts with a dedicated amount of money, forming a large, interconnected network of joint accounts. Users route payments through these  accounts, only pinging the blockchain to establish and close the accounts, which speeds things up dramatically. Accounts can also collect a tiny fee when transactions get routed through them,” the release further read.

While traditional schemes use the shortest path possible to complete a transaction and do not consider a user’s balance, PCNs rely on…