3 June 2019 | AtoZ Markets - IOTA - a non-profit organization which is focused on distributed ledger technology (DLT) and open-source ecosystem development. The company has announced that it has made a revolutionary step towards becoming the world’s first scalable and fully-decentralized distributed ledger technology.
The planned protocol upgrade is known as Coordicide. It will provide a new, decentralized mechanism for securing the IOTA network. This version of IOTA upgrade will be the first DLT to solve three fundamental problems with blockchain technology which is high fees, scaling and centralization.
Since last few days, IOTA coin surged higher in terms of price and total market cap. The main reason behind the IOTA’ price hike was Tangle announcement - the next evolution for the project.
IOTA coin has not been above 50-dollar cents since early November last year. Like many altcoins, it has been slow to recover while Bitcoin price has skyrocketed above $9000 mark. The last time IOTA coin rallied by as much was in April following the Jaguar Land Rover partnership announcement. But now, things started to bubble up for IOTA following this announcement a few hours ago.
Read more: How to Buy IOTA? Step-by-step Guide
IOTA to finally become fully decentralized
This has been a much-awaited protocol upgrade by IOTA team, and it’s dubbed Coordicide. The aim of the team is to make IOTA fully decentralized. The team has been finding a way in which to kill the Coordinator has been one of IOTA’s major struggles.
A few days back, IOTA co-founder Dr. Serguei Popov has revealed that they were able to advance a lot and finally created Coordicide. It has been clear from his statement that the upgrade was already in the works for a while.
David Sonstebo, Co-founder of IOTA Foundation said that: “We have been working towards the removal of the Coordinator since IOTA’s inception. Now with the maturity and growth of the protocol, and the quality of our research team, we are bringing that promise to fruition. IOTA was designed to address the limitations of Blockchain with a feeless and scalable solution. That is now becoming a reality. With this major milestone, we are poised to accelerate into our next phase of growth and enterprise adoption in the real world.”
What is the coordinator?
IOTA is based on a tangle structure. Each new transaction must confirm two old ones to be able to be self-confirmed. The coordinator is a central unit that secures the Tangle with a kind of safeguards, which is called as milestones. It is necessary because at present too few transactions are carried out to secure the completely decentralized network. The whole transaction chain that was confirmed by a milestone cannot be changed anymore.
Every minute the Coordinator executes a typical transaction with its sign on it, these are known as Milestones. Every transaction and milestones establish two other transactions. When users need to understand if a transaction is established, they discover the latest Milestone and notice if it obliquely confirms other transaction.
Thus, by eliminating the Coordinator from the IOTA network will achieve a large strived after the purpose in the field of DLT - scalability without centralization. The revelation itself is genetically modular, suggesting that users will have the final autonomy to tailor the system as per their personal requirements. This implementation will be a significant breakthrough for the IOTA Foundation’s intention of building an absolute enterprise.
The Future of the Tangle
The Coordicide solution is a modular structure that adds flexibility across all aspects of the IOTA. This brings benefits of increased scalability, faster transaction, and easier node maintenance. Also, data streaming services and other real-time applications become a real possibility with IOTA like use cases that are simply not feasible in other DLTs.
The Coordicide solution realizes IOTA’s promise as a lightweight and zero-fee ledger, overcoming the problem of scalability, security, and decentralization that continues to limit other DLTs and blockchains.
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