IOTA’s DAG (Tangle) is Not a Blockchain

Posted Under: In-depth
4 years ago

Directed Acyclic Graph DAG (Tangle) is not Blockchain

compiled by Jabba-Q, “The Coins Prophet” The BIGGEST thing ever to hit the crypto space has not launched on the exchanges yet. “The IOTA team is very anti-hype, almost too much. Talk “exchanges” on their Slack and you might get banned. There are no guarantees in crypto, but Iota serves a specific purpose and is unique in every way, and has established some very key relationships to further adoption. The crypto trader market is second-tier priority for the Iota team you will find they are far more concerned with PoC projects and legitimate business partnerships. Compared to so many other projects that are publicly traded, Iota is actually working and ready for mainstream.” (quote source)
People have not started to grasp and appreciate the fact that IOTA has got rid of miners. In IOTA, the transaction issuers are also transaction approvers and these two parties are no longer decoupled as in Bitcoin and Ethereum which use miners as the transactions approvers. This will bring a huge advantage for IOTA. We all know how many frictions the miners have brought into the Bitcoin system. The third parties (such as miners in PoW, stakers in PoS, witnesses and delegates in other systems) naturally makes the system more complicated (in other words, more vulnerable) because they could have different interests than the issuers(users). When those platforms become big enough like today’s Bitcoins, the conflicts between issuers and approvers will become notable. This kind vulnerability could make those systems virtually not fit for commercial use and applications when the conflicts become big. (quote source) DAG (Tangle) is superior to any current consensus in almost every way. The fact that is solves scalability and fees is a huge step forward. Ethereum still hasn’t even figured out how to implement POS (not sure if there is a safe way) and the clock is ticking, frankly I wouldn’t be surprised if it looks into DAG as an alternative. (quote source) Also, “the IOTA project is designed to create a secure and decentralized financial ecosystem for the Internet of Things. As more and more devices will be able to communicate with each other, payments will start playing a role at some point. A decentralized cryptocurrency seems to fit the bill nicely when it comes to making micropayments. However, IOTA is quite different from Bitcoin and Ethereum, as it uses no blockchain. Instead, it uses “Tangle“, a Directed Acyclic Graph shaping up a tangle. Once an IOTA transaction is broadcasted to the network, two previous transactions must be approved, and network nodes will need to make sure approved transactions are not conflicting. This is a different way tot tackle the threat of double-spends with virtual currencies. Additionally, blockchains are not suited to make micro-payments. Tangle will allow IOTA to be efficient, scalable, and lightweight. However, IOTA can communicate to blockchains, which allows for future collaboration between the Internet of Things and established digital currencies. In fact, the IOTA project could even be used as an oracle to complete smart contracts.” (source)
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  • Avatar Blawks
    Trying to fully understand the tangle of IOTA took me a little bit of time, this article at the IOTA blog helped clarify some things, if you haven’t seen it yet,
  • Avatar galyna
    There is no doubt that IOTA is highly ambitious projects that hold vast promise and might become strong alternative for the Blockchain. But with all its benefits, it has a disadvantages (dag vs blockchain): IOTA has a central point of failure. It doesn’t take a lot of resources to cover a 34% attack on IOTA (same as %51 attack on Bitcoin), the network has a temporary centralized element – “Coo”. Every transaction goes through Coo in order to be validated, that’s why centralized entity is directing the path of the IOTA’s DAG tree. IOTA is using own cryptographic algorithm that haven’t been subjected to thorough scrutiny.
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