MIT researchers claim that they have developed a new cryptocurrency, which requires an amazing 99% less space than bitcoin to store data. The cryptocurrency, called Vault, is based on the concept of Proof of Stake, which is resource efficient and requires little energy for processing.
According to the MIT developers, the Vault will be deployed during this year. Ethereum's current estimate for transition from PoW to PoS is approximately between 2019 and 2021. For some, the race for the first cryptocurrency, which uses an extremely high-performance PoS algorithm, has begun.
Vault takes advantage of PoS with a team of the best technical institutions in the world. Ethereum, who often fought Ripple (XRP) for the position of the second largest cryptocurrency, had long planned to switch to PoS, but still could not do this, citing problems with the upgrade.
The problem that Ethereum faces is called Trilemma, a concept proposed by its founder Vitalik Buterin. The tripartite dilemma suggests that using any cryptocurrency you can only get two of the three symbols: security, scalability and decentralization. Indeed, no cryptocurrency could ever reach all three. Even Ethereum has plans with several steps to solve this problem. This includes the transition to PoS and the development of level 1 and level 2 of Ethereum.
Silvio Mikali, a MIT professor, claims to have found a solution. Using the Merkle fragmented tree will allow nodes to store only data from the fragmented string. This will allow completing transactions without loading the full data history of the blockchain. For situations where the transaction is carried out from one fragment of the Merkle tree to another, a special method will be used to search for nodes that cross both fragments.
The technology and method of Vault seem reasonable, but it still needs to be proved. Ethereum, on the other hand, still has to complete the migration process.