CME Plans To Develop New System To More Easily Modify Blockchain Protocols

patent for a system that would allow for modifications of a Blockchain protocol without a consensus from all participants of the network, originally filed by the CME Group in December 2017, has been published by the US Patent and Trademark Office (USPTO) last Thursday, Feb. 8.

In most Blockchain-based networks, such as Bitcoin’s, modifying the protocol currently requires a network consensus that can be hard to achieve, making the system more resilient, but also harder to upgrade when needed.

The Segregated Witness (SegWit) upgrade, originally designed to add transaction malleability but now focused on Bitcoin scalability, required a 95 percent consensus in order to be activated, which took several months to form.

CME uses the example of an airline frequent flyer program to demonstrate the potential problems with using a Blockchain that cannot be easily modified.

If an airline needs to increase transactions fees for transferring airline miles or add a KYC/AML identity program, it would need every node and miner on the network to approve the change by updating their software…

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