A couple of days ago, I wrote an article discussing how IOTA is implementing a new consensus mechanism called Coordicide.
If IOTA is able to deliver as promised and successfully remove its coordinator while at the same time achieving a higher degree of decentralisation and maintaining security, there is absolutely no reason that this DAG-based protocol will not be adopted by the majority of IoT-developers, producers, and supporters.
To better understand this, let’s take a look at some of the advantages of Coordicide.Coordicide features Reliable timestamps
Instead of directly voting on the fate of transactions, users can instead vote on the credibility of timestamps. Here, ‘credible’ means that the difference between the issuing timestamp of a transaction and its arrival time to the nodes is not above a certain threshold. This has multiple benefits, such as:Devices that do not have full knowledge about the ledger state can take part in the voting process, which is extremely beneficial for IoT environments. Since the network can reach consensus on which transactions carry credible timestamps, there will be a timestamp order to transactions.
Let’s not forget that not having timestamps has been one of the major drawbacks for IOTA and other DAG-based cryptocurrencies, so the hope is that this implementation will appease some dissenters.Multiple Tangles
Without the coordinator, it is possible to have multiple Tangles coexisting as separate domains. Each domain can implement a different logic for the transactions it processes and associate a different meaning to the tokens it contains. Even though these domains do not necessarily share the same rules, it is still possible that transactions from one domain refer to data from another domain.
This will enable IOTA to model extremely complex use cases with very simple building blocks.
In addition to adding a lot of flexibility to IOTA, the modular appro...