There is something new on the horizon for the Ethereum
blockchain network which might just resolve the issue of scaling for the second largest cryptocurrency in the world. The inspiration for the name of this new technology comes from Slavic mythos – namely Perun – the god of lightening.
The new tech which has been researched on by a group of researchers that are based in Warsaw, Poland takes its inspiration from the lightening network that Bitcoin is making use of. A new white paper has been released by the researchers based in Poland which has been given the title “Foundation of State Channel Networks”. This new white paper
proposes a new protocol which can possibly help the Ethereum blockchain network to improve on its scaling and become capable of facilitating smart contracts that are more sophisticated than they are right now.
Difference In Approach To Others
This is not to say that Perun is the only approach being taken to come to a resolution for the Ethereum blockchain network’s
scaling problem, it’s just that the manner in which Perun is approaching the problem is different. The focus that this new technology has is on the security aspect of the protocol.
Perun does work like the other methods which are aiming to move transactions of the main blockchain but the difference is that all those involved have the option of registering the current state of the smart contract at any time. This will allow for the smart contract to be reversed back to the channels to the point where the corresponding parties came to an agreement of terms. This is to say that if two parties send two states to the channel that are in conflict with each other then it will switch back to the state where they agreed on terms initially.
This proposal has received a lot of positive feedback from the community in general but most of all from Vitalik Buterin himself. He has gone on to actually applaud
this proposal saying that he agrees there is a need to introduce a kind of method to verify the properties within the layer-two systems which are being proposed to solve the scaling problem for the Ethereum blockchain network.
The Ground Reality As It Is Right Now
With all of this having been noted, the fact of the matter is that there is still a long way to go in order to make this come a reality. One of the co-authors of Perun, an associate professor at the University of Warsaq Stefan Dziembowski has said that the prototype which is being developed by the Perun team is not exactly ready yet to be tested live right now. Buterin
is also wary of the actual implementation of this proposal right now.
There is a significant risk there and everything needs to be sorted out before actually implementing the change being proposed by the Perun team’s white paper. The DAO is the perfect example which can be looked at to see how bad things can get. That being said, there is every bit of potential in the Perun protocol to succeed. It remains to be seen when it will be implemented on the Ethereum blockchain network.
is a Bitcoin pioneer, a social economist and digital currency trader. His work in this field is legendary. In 2011, at the dawn of the crypto era, he founded BitInstant, the first and largest Bitcoin company. In 2013, he founded the Bitcoin Foundation and serve as its vice chairman. Since then, Charlie has advised more than a dozen digital currency companies, launched and managed numerous partnerships between crypto and non-crypto companies, and is the go-to guy for some of the world’s wealthiest entrepreneurs. In short, he is the ultimate insider at the epicenter of the crypto universe.
is a premier advisory firm providing expert research, education and advice in the world of cryptoassets. The company is unique in that it combines the unparalleled expertise of crypto pioneer Charlie Shrem with the unparalleled market knowledge of three Wall Street experts with more than a century of combined financial industry experience. Together, they have managed and traded more than $1 billion in assets. In a world of "instant experts," who have little knowledge or trading experience, the Crypto.IQ team offers the proven depth, insight and knowledge to help their clients achieve success.
Raise your Crypto.IQ…and profit! Crypto.IQ gives you the insider knowledge you need to succeed as a cryptocurrency investor.
Get Started Now