Cryptocurrencies are blockchain application as we know which makes payment and exchange better and efficient. They known to be faster in processing time than bank transactions, they are decentralized, they are also more secured and can’t be influenced by a third party.
These are the features that made digital assets gain popularity and acceptance in recent years. Focusing on the first coin as it is called Bitcoin it was the first application of the blockchain and it turned out to be a success this gave path to the emergence of thousands of digital coins or cryptocurrencies and some promising coins displayed potential by trying to improve on the inabilities of Bitcoin which are majorly its processing speed and processing power as Bitcoin is relatively slow as compared to other potential coin and heavy in terms of the amount of processing power needed.
A cryptocurrency that has improved on Bitcoin is LITECOIN(LTC) this coin is very light in the sense that the processing power needed for it is very light whereby boosting its speed of processing time.
All these improvements didn’t affect Bitcoins popularity as it’s the cryptocurrency with the most adoption shooting its price of one BTC to around $9200 at the moment of writing this article, then its gave rise to thoughts on how to improve Bitcoin itself. Researchers with Massachusetts institute of technology (MIT) came out with a new development of a new routing scheme that can enhance the speed of Bitcoin by four times.
The routing solution packetizes transfers thereby increasing the throughput for Bitcoin where making a multi-path transport protocol in payment channel networks. Using ’packetization’, the routing spider scheme can complete large transfers on low-capacity payment channels.
Furthermore a claim was made that the multi-path congestion control protocol ensures balanced utilization of channels and fairness in the flows. This new technology looks like the packet switching techniques generally used for communications on the internet. Apparently the solution utilizes queue management to settle network congestion.
More rewarding is the fact that lesser funds are needed to establish the transfer and with the huge adoption of Bitcoin the challenge remains delivery of fast payments at scale looking at Bitcoins 4.6 transactions per second(TPS) as compared to Ethereum with 15 transactions per second.
This has prompted developers to work on navigating the issue of scalability by introducing layer two payment channel network.
These solutions increase the networks ability to process payments by settling transactions off-chain, it isn’t to say payment channel network include its challenges where it requires users to deposit funds in escrow accounts meanwhile in the current scheme the funds of some escrow accounts are exhausted quicker than others.
The spider routing scheme treats these issues by dividing the transaction into bite-size packets that are dispatched across multiple channels at several rates.