Comparison between IOTA vs Blockchain

Comparison between IOTA vs Blockchain

IOTA vs Blockchain

IOTA is a cryptocurrency designed for the Internet of Things. IOTA was designed to help machines communicate and settle transactions without fees. The blockchain is a simple yet ingenious way of passing information from A to B in a fully automated and safe manner. One party to a transaction initiates the process by creating a block. This block is verified by thousands, perhaps millions of computers distributed around the net. The verified block is added to a chain, which is stored across the net, creating not just a unique record, but a unique record with a unique history. Though IOTA and Blockchain are built on the same principle, they obey different architecture which makes them distinct. Let us have a look at some of the important differences of IOTA and Blockchain.

Feature IOTA Blockchain
Data Structure IOTA, otherwise Tangle, is based on DAG (Directed Acyclic Graph). This enables transaction throughput without any fee involved. As more participants make transaction, the overall system becomes secure and fast. Blockchain data structure is an ordered, back-linked list of blocks. It is often visualized as a vertical stack, with one block layered on other.
Consensus Every network making transaction can participate in consensus. Consensus is built-in part in IOTA and is intrinsic. It is achieved through a rigorous mechanism. It is usually decoupled from the transaction generation and is performed by a subset of the network that leads to centralization.
Transaction Every transaction refers two past transactions and obeys the rules of Protocol. More transactions means more scalability. Often, smaller part, say, miners approve transactions. More transactions make scalability harder.
Properties Tangle is a distributed ledger, which is scalable, light and transfers value without anything in return. It is a de-centralized peer-to-peer network. It is a P2P network, with no central party and executes probabilistic broadcast.
Partition Intolerance Transactions are relayed by nodes and cannot occur without other layers of abstraction. Can happily operate without being connected to the main tangle. If they later wish to connect, they can easily do so.
No Micropayments It has no transaction fee and can accept as small as 1 IOTA. In course of time, transaction fee has become impractical and crippingly became high.
Obsolete Cryptography It uses ‘Quantum Resistant Cryptographic Algorithm’, which are immune to attacks. Bitcoin could be crippled by the sudden deployment of large-scale quantum computers.
Centralization of Control There is no separate mining in IOTA. Each viewer can be viewed as an independent miner. Blockchain obeys centralized control.

I hope this post helps you to understand all the comparisons between “IOTA and Blockchain”.
Keep Learning 🙂

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