IOTA (IOTA) Takes a Major Step Toward Decentralization with Coordicide Solution

“IOTA Announces Coordicide Solution; A Distributed Ledger Technology that Removes the Barriers of Blockchain for Real-World Adoption IOTA Realizes the Promise of Enterprise-Ready Decentralized and Scalable Distributed Ledger Technology IOTA Foundation, a non-profit foundation focused on distributed ledger technology (DLT) and open-source ecosystem development, today announced that it has made a breakthrough step towards becoming the world’s first scalable and fully-decentralized distributed ledger technology. The planned protocol upgrade, known as Coordicide, provides a new, decentralized mechanism for securing the IOTA network. With this upgrade IOTA will be the first DLT to solve three fundamental problems with blockchain technology: high fees, scaling and centralization.” Read More — Cara Harbor, Director of Communications

Summary

IOTA’s Coordicide solution removes the Coordinator from their Tangle, which is a momentous step towards realizing the promise as the first decentralized and scalable DLT.

The planned protocol upgrade provides a new, decentralized mechanism for securing the IOTA network. With this upgrade, IOTA will be the first DLT to solve three fundamental problems with blockchain technology: high fees, scaling, and centralization.

IOTA developed the Coordinator to protect user funds while the network was in its infancy. The Coordinator is a security mechanism that ensures transaction finality and prevents double-spends, but it was always viewed as a temporary solution by IOTA.

The IOTA Foundation has expanded its research team and founded the IOTA Research Council in November of 2018. These efforts have aided in the development of Coordicide.

Significance

The Coordicide solution brings IOTA closer to their promise as a lightweight and feeless ledger, overcoming the trilemma of scalability, security, and decentralization that continues to limit most other DLTs and blockchains. It is a modular system that adds flexibility across all aspects of the IOTA protocol.

This is significant as it is a technological milestone for the IOTA team. Instead of a centralized authority, this solution gives people the software to run their own coordinator, creating a decentralized authority. Eventually, there could exist the option to ignore the coordinators, further reaching toward a truly distributed network.

Vitalik Buterin noted that it appears similar to another consensus mechanism ‘Avalanche,’ which is based on a random sampling of the network and a metastable mechanism. Moving forward, investors and backers are eager to see IOTA demonstrate a viable product from one of its partnerships.

IOTA price at the time of Blockfolio Signal: $0.44. View IOTA on Blockfolio.