IOTA Foundation, a non-profit foundation focused on distributed ledger technology (DLT) and open-source ecosystem development has made a breakthrough step towards becoming the world’s first scalable and fully-decentralised 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.
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. All Coordinator activity is validated by the nodes in the network, such that funds cannot be lost nor transactions reversed. From the outset IOTA has been vocal about its plans to eventually remove the Coordinator, giving frequent updates on its progress.
“We have been working towards the removal of the Coordinator since IOTA’s inception. Now with the maturity and growth of the protocol, and the quality of our research team, we are bringing that promise to fruition,” said David Sønstebø, Co-founder of IOTA Foundation. “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.”
At the heart of the Coordicide solution is a modular system that adds flexibility across all aspects of the IOTA protocol. This brings benefits of increased scalability, faster transaction finality and easier node maintenance, as well as a variety of novel use cases. Data streaming services and other real-time applications become a real possibility with IOTA; use cases that are simply not feasible in other DLTs.
The Coordicide solution realizes IOTA’s promise as a lightweight and feeless ledger, overcoming the trilemma of scalability, security and decentralization that continues to limit other DLTs and blockchains.