By
Steve Muchoki
April 4th, 2024
The team of the researchers at the University of Sydney believe the new Blockchain system has a potential for revolutionizing the global economy.
Researchers at University of Sydney (USYD) in Australia are currently developing a new model of blockchain which will be able to process more that 400,000 transactions per second. The project team believes the new system has a potential for revolutionizing the global economy.
The system, named as Red Belly Blockchain, is now being developed and researched by the university’s School of Information Technologies. According to the researchers, the new technology would allow an almost instantaneous procession of cryptocurrency transactions in addition to being secure.
“The Red Belly Blockchain offers unprecedented throughput of more than 400 thousands transactions per second on 100 machines. Its safety aspect is of invaluable importance for critical industries, like banking, and offer performance that scales horizontally,” as is written by the researchers on the project’s site.
For the sake of comparison, a theoretical maximum speed for Bitcoin, current leader of the cryptocurrency market, circulated online is 7 transactions per second. However, in reality the Bitcoin network is achieving maximums of 3 to 4 transactions per second, according to Mybroadband.
Another major system Ethereum, towards the end of 2016, had an estimated speed limit of around 20 transactions per second, ETHNews reported.
Such well-kmown and wildly used payment systems as PayPal and Visa have 193 and 1,667 transactions per second on average correspondingly. In this case, however, comparisons of transaction speeds are tricky, as there are significant differences between cryptocurrencies and credit card payments. More precisely, these are different methods of payment and system architectures, reports Mybroadband.
Another advantage of the Red Belly Blockchain is that it is the first blockchain network, which is built in both public and private contexts. This would allow the peer-to-peer exchange of data but will also have a feature for the industrial environment allowing connection to certain users.
What is more the Red Belly Blockchain can avoid common problems connected with other blockchain techs work, such as forking – a process when the blockchain starts to diverge into two or more potential paths forward: “As opposed to mainstream public blockchains, ours is not subject to double spending — when an individual successfully spends their money more than once — because its chain of blocks never forks,” said USYD academic Dr. Vincent Gramoli, head of the research at the Concurrent Systems Research Group – the team developing the Red Belly Blockchain.
The next step for the Red Belly Blockchain would be to develop a recommendation system, which would automate the selection of participants of a consensus instance, which the university believes will ensure the security of their blockchain technology, claim developing team.
The Future of the Cryptocurrencies
Michael Novogratz, a $3.2 bln investor and former manager of the multi-billion dollar investment firm Fortress, predicts that the cryptocurrency market can reach $5 trillion by 2022. “The Nasdaq got to $5.4 trillion in 1999, why couldn’t it be as big? There’s so much human capital and real money being poured into the space and we’re at the takeoff point,” said Novogratz.
He also underlines that it is necessary to develop a strict regulatory base within the global cryptocurrency exchange market that could really turn it into a major financial market. As for now, many markets including Japan, China, South Korea, Australia, the Philippines, Singapore and Hong Kong have introduced necessary regulation to encourage people use digital currencies.
China, on top of that, is now planning to develop reasonable regulation for smaller markets such as the initial coin offering (ICO) market that has gained increasing interest from investors since the beginning of 2017.
At the same time Ari Paul, portfolio manager for the University of Chicago’s $7.5 bln endowment, supposes that only major currencies such as Bitcoin, Ethereum, Litecoin and Ethereum Classic are likely to survive in today’s high-compatitive market.
“Most cryptos, like most companies, will eventually be worth zero. This is the nature of competition. Buy and hold is a strategy, not safety,” he said.