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MIT, Stanford to build blockchain payments network to rival VisaNet

Wednesday 23 January 2019 10:42 CET | News

Seven major universities have joined forces to develop a digital currency network that aims to solve blockchain’s scalability and performance problems.

The Massachusetts Institute of Technology (MIT), Stanford University, Carnegie Mellon University and the University of California, Berkeley are among the institutions collaborating on the new payment network that will address performance, security and privacy of cross-border financial transactions.

The cryptocurrency application is called Unit-e and it was funded by the Distributed Technology Research Foundation (DTR) Foundation, a Swiss-based non-profit organization. Its blockchain-based payment system is expected to launch in the second half of 2019.

The new payment system aims to process 5,000 to 10,000 transactions per second. By comparison, Visas networks process about 1,700 transactions per second (TPS) on average, and more at peak load. When compared to blockchain-based networks, Bitcoins current average throughput is estimated between 3.3 and 7 TPS, and Ethereum reaches between 10 to 30 TPS, the researcher noted, therefore Unit-e has a strong case.

If successful, the new payment system would surpass even mainstream financial networks like Visas VisaNet in transactional capability, according to Computer World.


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Keywords: blockchain, payments , transaction speed, Unit e, MIT, Stanford, research
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