In the world of cryptocurrencies, the blockchain is generally the authority that decides neutrally whether a transaction is validly written. So far, IOTA has chosen a special route with its central coordinator. This has proven to be an emergency brake when a serious mistake in the official Trinity wallet from IOTA offered hackers an entry window in mid-February.
However, basically IOTA also wants to create trust through decentralization in the future and is therefore working on a decentralized IOTA 2.0 under the project name Coordicide. It was clear early on that the widespread Proof-of-Work (PoW) and Proof-of-Stake (PoS) protocols barely meet IOTA’s requirements. Now IOTA co-founder Serguei Popov and IOTA Research Councilor Dr. Bill Buchanan came up with a technological solution for Coordicide.
Find out more about IOTA 2.0 and read the latest finance news with the best online news aggregator, our companion app Born2Invest.
IOTA 2.0 could score with innovation in consensus building
Popov and Buchanan overwrote their thesis with the title “Fast Probabilistic Consensus within Byzantine Infrastructures.” Not only does that sound complicated, it is. To explain: under probabilistic science provides statements about probability, with Byzantine first democratic ideas and approaches to legal security from late antiquity are associated.
Popov and Buchanan want to prove that it makes sense to automatically give the participants of the IOTA network a level of credibility. This enables the network to reliably fend off hostile attacks by new participants and to quickly and securely establish consensus on transactions to be confirmed during normal operation.
At PoW, it’s crypto puzzles that must be solved before a transaction is approved. At PoS, it is randomly selected network participants who decide. The idea for Coordicide at IOTA is therefore following its own path and wants to prefer network participants for validation that have proven to be correct, in which no suspicious decisions occur. For IOTA, the question of building consensus is so central because the network in the Internet of Things (IoT) also wants to integrate less powerful end devices and has to strive for a high throughput rate. The decision as to which protocol IOTA 2.0 implements in the end is almost a philosophical discussion, as demonstrated by contributions by developer Hans Moog or IOTA co-founders David Sønstebø and Dominik Schiener.
The proposal by Popov and Buchanan now benefits from the fact that it has already been checked for plausibility by external experts and only then released for publication in the journal “Journal of Parallel and Distributed Computing”. On the other hand, the latest progress report on IOTA 2.0 named the consensus question for Coordicide as unsolved. There the developments could have overlapped in time.
Conclusion: IOTA 2.0 – technological breakthrough or experiment?
In order to understand the scientific evidence of Popov and Buchanan, considerable specialist knowledge is necessary. But it appears they have devised a workable model for the Coordicide protocol. It could already be implemented in the second planned test network for IOTA 2.0 called Nectar. Then results would also show whether the theory proves itself to be an innovation in everyday life. Because nobody at IOTA wants to dare to experiment if Coordicide is transferred to the mainnet at some point in 2021 according to the current schedule.
DISCLAIMER: This article was written by a third party contributor and does not reflect the opinion of Born2Invest, its management, staff or its associates. Please review our disclaimer for more information.
This article may include forward-looking statements. These forward-looking statements generally are identified by the words “believe,” “project,” “estimate,” “become,” “plan,” “will,” and similar expressions. These forward-looking statements involve known and unknown risks as well as uncertainties, including those discussed in the following cautionary statements and elsewhere in this article and on this site. Although the Company may believe that its expectations are based on reasonable assumptions, the actual results that the Company may achieve may differ materially from any forward-looking statements, which reflect the opinions of the management of the Company only as of the date hereof. Additionally, please make sure to read these important disclosures.
First published in BLOCK-BUILDERS.DE, a third-party contributor translated and adapted the article from the original. In case of discrepancy, the original will prevail.
Although we made reasonable efforts to provide accurate translations, some parts may be incorrect. Born2Invest assumes no responsibility for errors, omissions or ambiguities in the translations provided on this website. Any person or entity relying on translated content does so at their own risk. Born2Invest is not responsible for losses caused by such reliance on the accuracy or reliability of translated information. If you wish to report an error or inaccuracy in the translation, we encourage you to contact us.
Roche signs its new diabetes business manager in Spain to Isdin
The company Roche Diabetes Care Spain, part of the Swiss pharmaceutical group, has appointed Josep Maria Vallmajó to hold the...
Major reasons why your website might not be attracting customers
In 2016, the number of business websites had almost doubled from 900 million to nearly 1.7 billion. Whatever your marketing...
Savills IM refinances two Italian assets with one of the first green loans in Italy
One of the first green loans in Italy will refinance the retail park in Fidenza (Parma) and the U4 office...
4 tips to market your small business locally
Whether you’ve recently started a small business or have pivoted your sales tactics for your company because of COVID-19, you’re...
Bitcoin revolution by integration with PayPal
The integration of Bitcoin with PayPal is probably one of the most important news for the entire crypto industry in...
Africa5 days ago
Why countries in southern Africa could become leaders in the cannabis sector
Featured6 days ago
How the coronavirus pandemic impacted the German Fintech sector
Featured6 days ago
Why is the stock market up?
Featured6 days ago
What’s the problem with the Dow Jones? Maybe it’s overvalued