Input Output (IO) Research is tackling critical issues in DeFi and blockchain scalability. The team’s upcoming presentations at the Sixth International Conference on Advances in Financial Technologies (AFT) in Vienna showcase their work.
These contributions aim to boost the efficiency and scalability of decentralized systems, addressing critical technical problems that have long affected blockchain networks. By concentrating on both the theoretical and practical aspects of DeFi systems, IO is at the forefront of blockchain innovation.
‘Decentralization imposes major technical challenges to financial systems worldwide, and Input | Output Research is tackling every single one of them.’ – @IOHK_Charles
This month, at the Sixth International Conference on Advances in Financial Technologies (AFT) in Vienna, the… pic.twitter.com/asnK4u4upi
— Input Output (@InputOutputHK) September 23, 2024
Blockchain Space Tokenization: A Breakthrough in Blockchain Capacity Management
One of the major breakthroughs that IO Research is set to present involves tokenizing blockchain space, a concept that could revolutionize how blockchain networks manage capacity.
On Monday, September 23, Giorgos Panagiotakos, an IO research fellow, will present the concept of Blockchain Space Tokenization (BST). This project, co-authored with Elias Koutsoupias, Philip Lazos, and Solon Nikolaou, proposes a new method for optimizing blockchain scalability. It offers a way to tokenize blockchain capacity, leading to predictable fees and transaction delays.
🗓️On Monday, September 23, Giorgos Panagiotakos (IO research fellow) will present: ‘Blockchain Space Tokenization’
Co-authored with @sol3gga, Elias Koutsoupias, and Philip Lazos➡️ BST introduces a way to tokenize blockchain capacity, offering predictable fees and delays to… pic.twitter.com/NwSkd80Veu
— Input Output (@InputOutputHK) September 23, 2024
Therefore, BST is presented as a way to address one of the blockchain’s major bottlenecks: unpredictable delays and excessive fees caused by worst-case attacks. By creating a more predictable and stable system, BST enhances the overall reliability of decentralized financial platforms.
Improving Collateral Management in Layer 2 Protocols
In addition to tackling blockchain scalability, IO Research is also advancing the management of online collateral within decentralized protocols. On Tuesday, September 24, another paper, titled “Competitive Policies for Online Collateral Maintenance,” will be presented by Alexander Russell, Ghada Almashaqbeh, and Sixia Chen. This work explores strategies for handling collateral in Layer 2 protocols.
These systems offer a way to increase efficiency without compromising the decentralized nature of blockchain. Moreover, the research examines the balance between settled value and transaction fees, a crucial factor in decentralized finance. The strategies developed aim to achieve a consistent tradeoff between the two, providing a more efficient approach to collateral management.
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