According to Tadge Dryja, a crypto research scientist at MIT Digital Currency Initiative, regarding the concept behind the utreexo Bitcoin scaling solution. utreexo is based on a long-pursued idea by developers for years and seeks to streamline one aspect of the Bitcoin code which leads to high storage requirements as time passes.
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This scaling solution addresses the UTXO set. Currently, every Bitcoin node must store the entire information.
utreexo isn’t Necessarily a New Idea
With the utreexo scaling solution, instead of having to store the entirety of the Bitcoin state, holders could verify if it is correct using a cryptographic proof. This approach could help to cut down storage requirements to that it may be possible to operate Bitcoin (BTC) on a mobile phone.
Also called an accumulator, the technology underpinning utreexo is not necessarily a new idea, but it was previously met with numerous hurdles for implementation.
It is now swiftly becoming a reality. Dryja has plans to implement a functioning PoS code.
The crypto scientist isn’t alone. He is joined by a number of cryptography heavyweights including Dan Boneh, Ben Fisch, and Benedikt Bünz who have put pen to paper detailing a new alternate accumulator technique.
The main goal is to basically allow your phone to run a full node. This is a dream, that Bünz calls a scaling technology that allows Monero to reduce transaction fees by 96%.
The paper has also been picked by Ethereum (ETH) researchers, who are now investigating how the tech might run a layer two scaling solution known as Plasma.
utreexo Removes the Possibility of a Hard Fork
A part of this list of activity comes as a result of the fact that the nature of the tech, means it doesn’t necessarily require hard forks (a software upgrade that requires unanimous participation and support) to safely activate. Accumulators would instead be deployed to the wallet level, which reduces the path way to implementation significantly.
Expanding and Growing Bigger
Moving back on step, accumulators have since been talked about as early as 2010. However, they were met with insurmountable bottlenecks at the time known as the bridge node.
The reason for this is because to function; accumulators need other people on the network to provide support for the software. While this was previously a highly resource-intensive option, Dryja has created a bridge node that does not necessarily come with extra trade-offs. Hence, accumulators are feasible for the very first time since they began talking about them.
According to Dryja, it is notable because utreexo has the potential to address long-term pressure points for Bitcoin (BTC) which is the networks increasing UTXO set.
While this is known to fluctuate (the UTXO count of the scaling solution actually decreased last year), while the dataset typically increases alongside more usage of Bitcoin (BTC). This means, if left unchecked, it may keep growing, necessitating the implementation of an ever-increasing number of storage requirements.
With accumulators, full nodes will no longer have to be stored all at once to reach a consensus about where tokens are on the network. They can provide proof that the data is accurate.