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.
|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”.
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