MIT Spider and Off-Chain Payments

Say goodbye to crypto off-chain payment congestion as MIT unveils a new crypto routing system.

According to the MIT CSAIL report, the Spider solution will help solve the major issue of congestion caused by ineffective routing systems. Spider simply put, is a new cryptocurrency routing system. It’s designed by MIT researchers, including MIT graduate Vibhaalakshmi Sivaraman.

Effectively, Spider provides a more efficient payment route or Payment Channel Network (PCN). PCN transactions, unlike other crypto transactions, do not take place on the blockchain. These types of transactions are also called layer-two scaling solutions. They effectively evade blockchain and its shortcomings while still making use of its open-source, public ledger.

That said, only the opening and closing of the accounts end up on the chain. And PCNs are also considered as good accounts for remittances. Since the system only registers opening and closing records, remittance payments are faster in comparison with blockchain payments.

Confirmation of BTC payments, for example, takes about 11 minutes, whereas for Lightning it takes just a few seconds for confirmation to take place. Processing payment four times faster than any other method available today.

Thanks to MIT Spider, a major roadblock in the global adoption of cryptocurrency has finally been overcome.

How it works

According to the CSAIL report, Spider makes use of a dividing strategy. Simply put, it splits transactions into smaller batches across several channels. This method helps to reroute big payments, spreading it to a low funding level as well. This helps to evenly distribute transactions across both high funding levels and low funding levels.

Speaking on the scheme, Vibhaalakshmi pointed out that packet switching a major way to transfer data over the web was the driving force behind MIT Spider.

According to Computer World, MIT Spider uses fewer funds to complete a transaction. About 74% less than other conventional payment processors. Spider payment routes are also congestion-free. The network, instead of deleting transactions, queues them.

Facilitating cross-border payments is one of the main functions of cryptocurrency today. With the US – Mexico route one of the biggest in the world.

Previously Altcoin Buzz covered how Dash plans to improve crypto adoption in Latin America via crypto remittance.

(Excerpt) Read more Here | 2020-02-06 14:17:00
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