IOTA: Does the tangle works?
IOTA, the coin developed to make fee-less microtransactions for the Internet of Things (IoT). Searching a little in BitcoinTalk, we can find a post that explains the purpose of IOTA more clearly. In the post, it states that:
“The number of connected devices that will permeate our modern landscape in the coming decade is estimated to be 50 billion(!) Each of these is designed to make the world a better and more seamless place for us. Tied to this fantastic promise is, of course, a ton of obstacles to be overcome, of which one major one is micro-transactions. These connected IoT devices must be able to automatically pay minuscule amounts to one another in a frictionless manner without having to compromise on product design by introducing additional hardware. This is why IOTA was conceived.”
To further understand IOTA we must know what is trying to combat. For the most part, Bitcoin represents most of the things that IOTA’s blockchain, the tangle, is trying to improve. Let’s start with centralisation and control.
Centralisation and Control
The history of Bitcoin is the story of a decentralised cryptocurrency becoming centralised. The reason behind this movement is the creation of mining pools and mining farms. These operators started to hold more computation and political power as Bitcoin mining became less rewarding due to the arms race created by the rising Bitcoin price. According to UK Cryptocurrency, the eight largest Bitcoin mining pools account for 75% of the Bitcoins mined on a daily basis. The top miners are:
- AntPool (16.6%)
- BTC.top (13.1%)
- Bixin (9.3%)
- BTC.com (8.9%)
- F2Pool (8.5%)
- BitFury (7.4%)
- BTCC (6.2%)
- Slush Pool (5.6%)
- Total: 75.6%
IOTA does not have a “separated mining.” That means that anyone who makes a transaction on IOTA validates two transactions at the same time. Ergo, users take part of the network as they use it. That means the system far more efficient and faster while keeping things genuinely decentralised and democratic.
Beyond IOTA ability to “mine” while making transactions, the tangle was also designed with the future in mind. Bitcoin and most other altcoins were intended with current cryptographic algorithms in mind. However, the tangle decreases any damage quantum consensus can create by a factor of a million. That may sound like a made-up number. But in their whitepaper, the company explains how their blockchain is suited for the arrival of quantum computing and quantum cryptography.
These two points, while simple, allow for IOTA to make transactions with zero fees. The frictionless nature of their blockchain, equipped with the ability to enable their users to also participate in the blockchain is one step ahead of the competition. Additionally, the extra security it provides showcases how critical protection is for IOTA.
Regarding the future, it is hard to tell where this idea might end up. As of this writing, Bitcoin is the leading coin in the world. However, with an ever-changing technological world, it would only be a matter of time before IOTA showcases why the future belongs to everyone.