- The development team believes Unit-e will overtake Bitcoin
- Performance and scalability have hindered Bitcoin’s growth and adoption
- The team has analyzed blockchain and improved on its “weaknesses”
Professors from seven US colleges trying to tackle the unresolved challenge of blockchain scalability have teamed up to create a digital currency they believe will achieve the high speeds Bitcoin users pray would happen. The academics have launched a worldwide scalable decentralized payments system.
Unit-e to Topple Bitcoin
According to a report in Bloomberg on January 17, 2019, the digital currency, dubbed Unit-e will become the first initiative of a non-profit foundation known as the Distributed Technology Research, which has been created by the academics backed by hedge fund Pantera Capital Management LP to spearhead decentralized technologies.
As per the Bloomberg report, the professors from universities including Stanford University, Massachusetts Institute of Technology (MIT) Stanford University and University of California, Berkeley aver that Bitcoin may not process thousands of transactions per second because its “performance and scalability are hindered by inbuilt restrictions. The group says the Unit-e, which will also cover smart contracts. A leading researcher Pramod Viswanath told Bloomberg:
“Bitcoin has shown us that distributed trust is possible, but it’s just not scaling at a dimension that could make it a truly global everyday money […] it was a breakthrough that has the capacity to change human lives but that won’t happen unless the technology can be scaled up.”
The Distributed Technology Research (DTR) has said it plans to do the official launch in Q3 or Q4 2019 and that the Unit-e will be able to process at least 10,000 transactions per second. If that turns out to be true, Bitcoin’s current average speed of 3.3 to 7 transactions per second or Ethereum’s 10 to 30 transactions per second will become a pale shadow of the “new reality” which will also unseat Visa, a centralized network that averages at least 1,700 transactions per second.
Pramond Viswanath, who is a professor of electrical and computer engineering at the University of Illinois Urbana-Champaign told Bloomberg the DTR team analyzed the blockchain technology and have attempted to improve its entire element in order to achieve high speed and scalability. In trying to understand blockchain’s performance, the team discovered that Bitcoin’s scalability is caused by its design especially in creating new blocks. Commenting on Bitcoin, Pantera Capital co-chief investment officer Joey Krug told Bloomberg:
“The mainstream public is aware that these networks don’t scale. We are on the cusp of something where if this doesn’t scale relatively soon, it may be relegated to ideas that were nice but didn’t work in practice: more like 3D printing than the internet.’’