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Tangle: A Cryptocurrency for the Internet of Things
Tangle, a cryptocurrency developed for the Internet of Things, will allow companies
to explore business-
The Tangle ledger can settle transactions with no fees, allowing devices to trade
exact amounts of resources on-
Existing Systems’ Drawbacks
The Tangle project began in mid-
One drawback of existing cryptocurrencies is the impossibility of making micro-
Existing cryptocurrencies are also heterogeneous systems with a clear separation of roles (transaction issuers, transaction approvers). Such systems create unavoidable discrimination of some elements which in turn creates conflicts and spends resources on conflict resolution.
The Tangle Ledger: How It Works
Instead of using a sequential chain and separating the network into users and validators, IOTA (as the protocol is known) uses a directed acyclic graph (Tangle) architecture which makes users and validators one and the same.
To issue a transaction on the Tangle, users must approve other transactions, thereby
contributing to the network’s security. As a transaction receives more approvals,
it becomes more accepted by the system. It becomes more difficult (or practically
impossible) to make the system accept a double-
The project is largely at the cusp of its debut. “In fact, we have withheld exchange
listing still in order to ensure this new technology works as promised,” David Sonstebo,
one of its founders, told CCN. “Currently, a lot of different developers, start-
The core founding team of IOTA includes Sonstebo, Sergey Ivancheglo, Serguei Popov and Dominik Schiener. The team has grown to include developers, cryptographers, activists and general community members.
IOTA Use Examples
IOTA use examples include:
1) Sensors selling data in real time to computational stations.
2) Sensors buying analytical capabilities of computational stations.
3) Consumers buying electricity from any kind of electricity generating prosumer.
4) Devices buying storage space.
5) Devices buying bandwidth on demand, with no need for subscriptions.
6) Ensuring data integrity for IoT devices.
7) Ensuring tamper-
A fog computational station, for instance, can sell its analytical capabilities to sensors and then use the sensors’ payments to buy electricity from a smart grid.
“I don’t see IoT really working on a large scale without IOTA or equivalent due to
the security requirements and absolute necessity of interoperability,” Sonstebo said.
“However, IOTA is an agnostic protocol, so even though we made it specifically to
act as the ledger-
“Similarly due to IOTA’s unique ability to act as a medium for data transfer that
ensures data integrity for free, we see it being explored heavily in areas where
this is important, such as e-
“The other large thing IOTA got rid of is the bottleneck, which in blockchain is the blocks themselves,” Sonstebo said. “There is no ‘block size’ in IOTA, in fact, there are no blocks at all. This means that there is no hard limit on how much the network can scale as transactions can be added into the Tangle at any point, and the more the network grows, the more efficient it becomes, unlike blockchain, which becomes congested and unusable if too many try to use it at once.”
“Finally IOTA is partition tolerant in a manner that allows it to easily ‘branch off’ parts of the Tangle ledger to disconnected clusters so they can continue to ensure data integrity and do transactions among each other via some local protocol like Bluetooth,” he said.
“The Tangle is inherently immutable through the fact that you can’t even fork it even if you wanted to, so there is no risk for anyone in that regard,” he said. “However, in the coming months, kinks are still being worked out and the protocol optimized, so there is no way to technologically guarantee that nothing can go wrong, as we have seen with Ethereum; even years on, things still go wrong.”
The Tangle network is said to be quantum-
“But overall, once the network is fully operational and self-
Promotion To Begin
“In IOTA the focus has always been on 1) the protocol working as intended and 2)
“Ever since the project began back in 2015 we have been working a lot with different