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Published on : Jul 03, 2017

In School of Information Technologies at the University of Sydney (USYD), an Australian public research university, researchers disclosed on July 3, 2017 that they are building a new and advanced blockchain technology. The researchers claimed it disrupt the global digital payment network. Named as Red Belly Blockchain, the new technology, believes the developers, has the potential to enable an almost instantaneous transfer of cryptocurrencies-more secure and faster than any public and consortium blockchains currently available.

The researchers at the USYD want to further improvise the security of the technology by developing a recommendation system that can automate the selection of the participants.

Breakthrough to Handle Potentially Large Number of Transactions

Vincent Gramoli, the head of the Concurrent Systems Research Group at the USYD, which is developing the distributed payment technology, stated that, in recent testing modules, number of transactions peaked to 440,000 per second on 100 machines. This is substantially better than Visa's blockchain network, which could only service around 56,000 transactions per second or the Bitcoin network, whose capacity is capped to just about seven transactions per second.  The breakthrough combines the potential of both public and private contexts.

Double-Spending Not A Concern Anymore

According to Gramoli, developing an advanced blockchain technology was mandated by the need to overcome the common shortcomings of traditional blockchains, such as forking, as well as the specific constraints of performance. For instance, due to forking, clients in mainstream public blockchains, may end up double-spending of digital currencies. But the new blockchain, claims researchers, will eliminate this risk. In addition, consortium blockchains cannot manage tens of thousands of digital transactions per second emanating from a significantly large number of clients. Red Belly Blockchain is likely to offer virtually unlimited horizontal scaling of performance.

In 2017– 18 Budget, the Australian government announced that it will be soon aligning the GST treatment of cryptocurrencies, including Bitcoin, with other regular currencies. With blockchain increasingly popular among industry players, this is anticipated to greatly benefit the nation’s financial technology industry.