IOTA, the internet of things-based cryptocurrency has seen some very positive movements this week with IOTA investors no doubt feeling quite pleased with their investment choices. Of course, we can’t guarantee that these positive movements will continue, the nature of cryptocurrency is one that tends to be quite erratic, meaning that just as a crypto begins to climb, it can crash back down too. Why is this important? Well we want you to know that crypto is risky business, yes, invest in IOTA but only do so after you have done extensive research into the IOTA project. These weeks movements are one thing, but next weeks movements could see something totally different entirely.
So, what’s happened this week? The spike in the value of IOTA comes off the back of an announcement that suggests the IOTA ecosystem is about to see a huge upgrade, one that promises to address a number of concerns that investors and traders have had with the IOTA ecosystem. As we know, no blockchain project or cryptocurrency is truly decentralised just yet, though with this new update, IOTA is about to take one giant step closer to decentralisation.
Known as the Coordicide Solution, IOTA have announced an update that solves a big problem with the IOTA coordinator, a system that was designed to help keep the IOTA network (Tangle) secure. In order to understand Coordicide, we have to understand the coordinator. Here’s a little description of the IOTA coordinator that we have found within the main IOTA FAQ page:
“In IOTA because each transaction requires a tiny amount of Proof-of-Work and/or requires a tiny amount of bandwidth, the communitive throughput of transactions is what secures the network. The more transactions which occur, the more secure the network becomes.”
“Additional security measures, such as checkpoints, which are needed to secure the Tangle in its early days as referenced by the White Paper come in the form of 'milestone' transactions issued by The Coordinator, a special node which digitally signs transactions it issues in the Tangle, as well as their location. The Coordinator issues transactions by the same method as any other node, the only difference being that it also signs the location so that they cannot be subsequently reattached to a different location. It is recommended for other nodes to not consider a transaction confirmed until referenced directly or indirectly by the Coordinator's milestone transactions.”
As you can tell, it’s pretty complicated. In essence though, the coordinator had to expose transaction locations when the Tangle saw low transaction volumes in order to ensure the network remained secure. Coordicide finally removes the need for this. This is an update investors and blockchain fanatics have been waiting for, for a very long time as simply put, it makes IOTA and the Tangle a hell of a lot better.
This week, IOTA made their first official announcement about the roll out of Coordicide:
“We are proud to unveil our blueprint for the Coordinator’s removal — a momentous step towards realizing IOTA’s promise as the first decentralized and scalable DLT. Removing the Coordinator from the IOTA network will realize a long sought-after goal in the field of DLT: scalability without centralization. The solution itself is inherently modular, meaning that users will have ultimate freedom to tailor the system to their individual needs. Its implementation will be a major milestone in the IOTA Foundation’s goal of creating a truly enterprise-ready DLT.”
By being enterprise ready and by moving one step closer to true and total decentralisation, IOTA is preparing themselves for a huge wave of developer interest in the coming months. As we have mentioned, IOTA is an internet of things focused system. The internet of things or IOT refers to technologies that work together in real life, moving way past the current format of the internet which is heavily software and data driven. The internet of things includes smartphones, smart cars and anything else that could eventually be made smart, through interaction with artificial intelligence, the internet and in IOTA’s case, the blockchain.
Being enterprise ready means that large companies and businesses will be able to make the most of IOTAs technologies, this is huge for both IOTA and the rest of the blockchain company because it’s allowing this technology to be moulded and shaped for use at an industrial level. Because IOTA and the Tangle is so malleable, we don’t yet know what enterprise technologies Coordicide enables just yet, but truthfully it seems that the possibilities are endless with this one.
If you want to know more about Coordicide we have included a link to the Coordicide website in the video description below, please take a look through it and learn more about this exciting update and how it will go on to impact IOTA for years to come. If you’re not so technically minded then don’t worry, the website has been designed for all investors, no matter your skills or prior knowledge, it gives you a really good chance to make sense of this incredible technology. As the Coordicide website says:
“The IOTA Foundation is preparing to take its most important step to date in the maturity of the IOTA protocol — realizing the dream of a permissionless and scalable distributed ledger technology (DLT). We refer to this event as Coordicide: the death of the Coordinator.”
As we say bye to one fantastic piece of technology and welcome this new and frankly fascinating project, it really puts perspective on how much the blockchain industry has grown over the past few years. Developments are fast and upgrades are frequent, IOTA remains on top of this and promises to continue to grow for the long term too.