A blockchain researcher has been working on a scaling overhead for the unconsumed transaction output set of the Bitcoin protocol. According to Tadge Dryja’s recently published research description, the software engineer works on a dynamic accumulator called Utreexo. The project could theoretically allow network participants to check the status of the chain’s consensus rules with smaller cryptographic credentials.
Lightning Network Co-Creator designs a scaling solution called Utreexo, Tadge Dryja from MIT and the Digital Currency Initiative. A few years after the birth of Bitcoin, developers and network participants discovered the protocol needed to scale to enable transactions for a growing number of users. The software stores a record of all transactions and all newly minted coins in a distributed ledger. This makes maintenance of the entire nodes cumbersome over time, and one big reason for that is the collection of Unspent Transaction Outputs or UTXOs. To solve the scaling problem, Tadge Dryja from MIT wrote a description of the current research project called Utreexo that he was working on. The protocol is a hash-based dynamic accumulator that essentially reduces the millions of UTXOs recorded in the chain to less than one kilobyte. “There is no trustworthy facility or security loss. Instead, the burden of tracking funds is shifted to the owner of those funds, “explains Dryja.
“With Utreexo, however, Bitcoin owners can not store all bitcoin status, but can easily verify it with cryptographic proof,” says Dryja. “This approach could reduce storage requirements to the point that even Bitcoin might run on a mobile phone.”