MIT Researchers Develop Cryptocurrency That Is Up to 99% More Efficient Than Bitcoin

Published by
MIT Researchers Develop Cryptocurrency That Is Up to 99% More Efficient Than Bitcoin

Researchers at the Massachusett Institute of Technology (MIT) have come up with a cryptocurrency known as Vault that is set to revolutionize the cryptocurrency industry. First, the cryptocurrency network reduces the need for large data to join the network and verify transactions as well as reduces memory consumption.

Advertisement

No need to spend so much

The need to download the full blockchain for a cryptocurrency from inception in order to be fully involved in transaction verification and to maintain the network integrity is the case for decentralized cryptocurrency now. This is a major hindrance to scalability according to the researchers as not everyone can afford to pay for a large amount of data and powerful computers to download such blockchains.

Co-author of a paper that will soon be presented on the Vault cryptocurrency, Derek Leung, said:

“Currently there are a lot of cryptocurrencies, but they’re hitting bottlenecks related to joining the system as a new user and to storage. The broad goal here is to enable cryptocurrencies to scale well for more and more users.

To join the Vault network, users only need to download a small fraction of the blockchain data and they will still be able to participate fully. This cuts down data consumption by at least 90% and saves computer memory for other uses. Speaking of memory, the design also allows the network to remove any empty accounts that are taking up space to make room for credible transactions.

Advertisement

Proof-of-Stake instead of Proof-of-Work

A vault was built on a cryptocurrency network called Algorand which uses Proof-of-Stake as its means of verifying transactions. The name Vault refers to how the transactions are stacked. Leung explains it better.

“A vault is a place where you can store money, but the blockchain also lets you ‘vault’ over blocks when joining a network. When I’m bootstrapping, I only need a block from way in the past to verify a block way in the future. I can skip over all blocks in between, which saves us a lot of bandwidth.”

That means no need to verify transactions sequentially instead, new users can just match a transaction somewhere in the past, also known as “breadcrumb” and match it to another “breadcrumb” somewhere maybe thousands of transactions ahead to verify it and they are all set.

The paper on the cryptocurrency which is to be presented at the Network and Distributed System Security Symposium next month is titled “Spun”. More details on the cryptocurrency can be found here.

Advertisement
Share
Achal Arya

Achal Arya is a digital product designer and an entrepreneur. He did his masters degree in design from IIT Hyderabad and has a bachelors degree in Computer Science. He works in the Web3 domain and manages new developments at CoinGape. Follow him on X at @arya_achal or reach him at achal[at]coingape.com.

Published by
Why trust CoinGape: CoinGape has covered the cryptocurrency industry since 2017, aiming to provide informative insights to our readers. Our journalists and analysts bring years of experience in market analysis and blockchain technology to ensure factual accuracy and balanced reporting. By following our Editorial Policy, our writers verify every source, fact-check each story, rely on reputable sources, and attribute quotes and media correctly. We also follow a rigorous Review Methodology when evaluating exchanges and tools. From emerging blockchain projects and coin launches to industry events and technical developments, we cover all facets of the digital asset space with unwavering commitment to timely, relevant information.
Investment disclaimer: The content reflects the author’s personal views and current market conditions. Please conduct your own research before investing in cryptocurrencies, as neither the author nor the publication is responsible for any financial losses.
Ad Disclosure: This site may feature sponsored content and affiliate links. All advertisements are clearly labeled, and ad partners have no influence over our editorial content.

Recent Posts

  • News

Binance Responds to Charges of Supporting Trump-Family Crypto USD1 and WLFI Soon After CZ Pardon

US lawmakers have started accusing crypto exchange Binance of supporting Trump family projects like World…

October 30, 2025
  • Bitcoin News

SpaceX Makes Third Huge Bitcoin Transfer in 10 Days, Is Elon Musk Planning Something Big?

Elon Musk’s space exploration company, SpaceX, moved another 281 Bitcoin on Thursday, according to blockchain…

October 30, 2025
  • News

Crypto Market Tumbles as Jerome Powell Says December Rate Cut ‘Far From Certain’

The crypto market turned sharply lower on Tuesday after Federal Reserve Chair Jerome Powell said…

October 30, 2025
  • News

FOMC Meeting: Federal Reserve Lowers Interest Rates by 25 Bps in Second Cut of the Year

The U.S. Federal Reserve has announced it has lowered the interest rate by another 25…

October 29, 2025
  • News

WLF Token Jumps 7% as Former Robinhood Counsel Joins Trump-Backed World Liberty Financial

World Liberty Financial (WLFI) has appointed Mack McCain as its new General Counsel. This marks…

October 29, 2025
  • News

Changpeng Zhao “CZ” Warns Investors “Don’t Buy” Golden Statue Meme Coin After 27,000% Surge

Binance founder Changpeng Zhao (CZ) has publicly distanced himself from a newly launched token inspired…

October 29, 2025