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Review on IOTA by Annett Jager
IOTA is a quantum-resistant distributed ledger protocol launched in 2015…
IOTA is a quantum-resistant distributed ledger protocol launched in 2015, focused on being useful for the emerging m2m economy of Internet-of-Things (IoT), data integrity, micro-/nano- payments, and anywhere else a scalable decentralized system is warranted. IOTA uniquely offers zero fees, no scaling limitations, and decentralized consensus where users are also validators. The digital currency 'iota' has a fixed money supply with zero inflationary cost.
Pros
- Free Transactions From the perspective of a node, a transaction looks like the following: Node chooses 2 other transactions that it will verify (every node approves 2 transactions) The node verifies both transactions after demonstrating there are no conflicts Nodes have to solve a cryptographic problem, similar to BTC in order to verify transactions (Finding some nonce to get the right hash)
Cons
- First off, Iota cannot do generalized smart contracts to Ethereum. However, what it is a competitor to is State Channel networks like Lightning Network or Raiden. Both state channel networks and DAGs allow for great scalability and micro-transactions but are unable to do generalized smart contracts (as they don't have strongly ordered transactions). The real comparison to be made is not between blockchains and the Tangle, but between state channel networks and the tangle.
