The MIT test provides a rare glimpse of how bitcoin might actually work on a large scale.
Revealed to CoinDesk last week, the prestigious US university has been quietly demonstrating an experimental use case for the bitcoin lightning network, which shows how it can be combined with smart contracts to not only handle millions of transactions, but do it to a greater extent. complexity.
Modeled in the school’s Digital Currency Initiative, beginning in 2015 as a way to further R & D on cryptocurrency, the tests envisage a system in which transactions will take place automatically in case of set external events, based on say today’s weather or current prices US dollars.
This is possible because of MIT’s creative use of so-called “oracles,” a trusted entity intended to broadcast data to smart contracts. For this demonstration, researchers Tadge Dryja and Alin S. Dragos created a test oracle to broadcast the recent US dollar price at satoshi, the smallest bitcoin unit, which anyone can take and contract for their smart contracts.
This is an important step forward for the idea, first proposed by Dryja lightning inventor last summer. However, this is the first time this is implemented as a prototype with work code.