The idea behind blockchain technology is decentralization, a phenomenon that entails the absence of central control in a ledger system. While IOTA has been a blockchain project for some time now, it lacked this single quality, one of three that make any system a true blockchain set up with security, scalability and decentralization.
IOTA has written its name in gold by becoming the first project to have all three characteristics through the launch of Coordicide, “the coordinator killer”. The major reason IOTA wasn’t considered to be decentralized was the presence of a coordinator, a centralized protocol that exists primarily to protect the Tangle from attacks but also controls the transactions of IOTA.
Mati Greenspan, the senior market analyst at the investment and social trading platform, eToro is very bullish on IOTA, tweeting that:
“(I) have shifted some funds towards IOTA. The Jaguar thing is cool + they’re about to implement decentralization.”
His optimism is solid and based on conviction. The platform is making a move towards the establishment of decentralization in its distributed ledger technology.
IOTA has unveiled its blueprint for the removal of Coordinator, with an upgrade known as Coordicide. Secondly, they have also launched the Coordicide website that outline’s the protocol upgrade in detail. IOTA’s Coordinator was designed by the platform’s developers to help secure funds in the network’s infancy. The feature, in particular, halts the occurrence of double spends and ensures that transactions flow through the platform smoothly.
The Coordicide Solution to IOTA’s Decentralization Efforts
Coordicide is a new protocol that is designed to eliminate the centralized Coordinator in order to make the network truly decentralized as “the first permissionless and scalable distributed ledger technology”, the IOTA Foundation said during the launch of the Coordicide Blueprint.
There are nodes in the network that validates Coordinator activity, ensuring that transactions are irreversible and that funds stay secured. The removal of the Coordinator feature has been gathering momentum from the platform’s very outset, and there have been constant updates from the platform’s developers on the same.
Speaking on the development David Sønstebø, the IOTA Foundation co-founder said:
“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.”
The platform is one of the most hyped platforms in crypto world because it has integrated crypto inspired technology to its use case. It, for instance, inherently unites with IoT using its Tangle mechanism.
Besides, it has done away with miners, which means that its transactions are feeless. Through such innovation, IOTA has managed to eliminate most pain points of blockchain technology, including scaling, high costs of transactions, and extensive use of energy.
A member of the public IOTA project, Markus Gebhardt confirmed that Coordicide will officially make IOTA the first blockchain project to have scalability, security and decentralization as it already has scalability and security but decentralization has been a problem with Coordinator. He added that the introduction of Coordicide will attract institutional investors as the project will become a true Distributed Ledger Technology.
A Redditor explains the process of the transition from a centralized platform to a distributed ledger:
“Coordicide is the transitional process of removing the coordinator. It starts with giving people the software to run their own coordinator, then the coordinators are a decentralized authority. Once the network is properly strong […] then you can have the option to ignore the coordinators in all’; then we might be reaching a true distributed network.”
IOTA Support from Large Firms
The platform has consequently amassed massive support from forward-thinking agencies and firms like Volkswagen, Jaguar Land Rover, and the City of Taipei in Taiwan. With the Jaguar Land Rover partnership, for instance, the vehicles will have an inbuilt ‘smart Wallet” that will support data sharing through IOTA’s Tangle. The Range Rover Velar and F-PACE models already have the technology in them, and their owners can now earn and pay for some services through them. Through the platform’s IoT data sharing capabilities, gadgets connected to the internet will be able to communicate and share data and reap the rewards for it.
IOTA has been the subject of much criticism in crypto world, with questions raised about security vulnerabilities in its build. With the Coordinator in place, also the platform has been unable to claim full decentralization.
Sønstebø has said in the past that a fully decentralized network cannot possibly be built overnight. True to his word, his platform’s long-awaited decentralization goal is finally attainable. The IOTA Research Council has helped design a viable alternative security measure to the Coordinator. The prowess of the platform in real time applications and especially data streaming will now be enhanced for broader use cases something other DLTs have not touched yet.
Ethereum’s Vitalik Buterin Responds to Update
Commenting on the introduction of Coodicide, Ethereum creator Vitalik Buterin said the protocol looks the a clone of Avalanche, a consensus protocol that provides a distributed consensus by using Proof-of-Work or Proof-of-Stake algorithm around a blockchain or cryptocurrency system. This means Coordicide will bring the same level of a distributed system to IOTA as Avalanche would have.
IOTA Market Overview
IOTA is currently the 15th largest cryptocurrency according to Coin Market Cap. With the launch of Coordicide, the potential interest of institutional investors may become a significant generator of adoption that could push the asset up the ladder. Coordicide is launching in the coming months and we can see what happens then.
All of Today’s IOTA Price Analysis, Chart Forecasts and Industry News
Author: Dalmas N