Massachusetts Institute of Technology (MIT) Digital Currency Initiative (DCI) has unveiled the pilot parallelized architecture for scalably executing smart contracts (PArSEC) project. The project has been inspired from central bank digital currency (CBDC), as stated by Cointelegraph.
According to Cointelegraph, the platform was executing 118,000 ERC-20 transactions every second using 128 hosts. From what it’s understood, the platform can drive cross-border contracting, along with utilisation for supply chains and compliance checks. Reportedly, PArSEC has potential to back ERC-20 tokens, which can enable an in-house automated market maker to conduct transactions using bonds, tokenized securities, repurchase agreements, and CBDCs.
Based on Cointelegraph’s data, PArSEC can develop communication between central and commercial banks. Developers suggest that the platform needs “significant” amounts of ongoing research, with emphasis on sections such as security, key management and data migration. “We focused on smart contracts because they provide the highest degree of expressivity and functionality to users,” PArSEC summary mentioned. Many belonging to crypto community have seemingly disapproved of the functionality part.
Moreover, Cointelegraph noted that PArSEC happened because of a 2022 research project. Sources suggest that it’s a part of Project Hamilton, a collaboration between DCI and Federal Reserve Bank of Boston.
(With insights from Cointelegraph)