IOTA Foundation, a non-profit foundation that focuses on distributed ledger technology (DLT) and open-source ecosystem development specifically geared for Internet of Things (IoT), has finally made a significant breakthrough and is set to be the first blockless DLT to perfectly balance decentralization, security, and scalability with Coordicide.
According to reports, IOTA will soon launch a Coordicide Protocol upgrade on TestNet. Coordicide is a necessary upgrade that provides a decentralized mechanism for securing the IOTA network. IOTA made progress last month when their research team came up with the idea. According to IOTA’s official description, “the open source Coordinator, called Compass, was originally released a few months back.” Adding that, one of its “main functions was that it allowed anyone to set up a private network, run tests, or develop PoCS more easily than before.”
Removal of the Coordinator
Coordicide was created after people within and outside the IOTA community raised concerns about its network. One major critic was how everything in the IOTA system had been centralized. The reliance on a review so-called “Coordinator” (“Coo”) posed significant concerns to many who wanted a change in operations.
IOTA created the Coordinator to protect user funds during the initial stages of the network. IOTA uses Coordinator as a security mechanism that ensures transaction finality and prevents double-spends. The nodes in the network validate all Coordinator activity, preventing funds from being lost and reverse of transactions.
Following these concerns, IOTA began plans for the new upgrade last year in November. Everyone then began to wonder whether the foundation wanted to obliterate COO. In answering the question, IOTA stated on their website:
“The short answer is that the coordinator can and will be removed if our research team is convinced that we sufficiently understand the coordinator-free Tangle.”
While speaking on IOTA’s progress, said David Sønstebø, Co-founder of IOTA Foundation had this to say:
“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. 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.”
Notably, the expected upgrade will make IOTA the first DLT to solve three fundamental problems with blockchain technology: high fees, centralization, and scaling. Launching the coordicide on TestNet is expected to allow the testing of various theoretical approaches.
Benefits of Coordicide
In addition to making, the IOTA platform decentralized and permissionless, Coordicide will enable the platform to have transaction finality within seconds. Users will no longer have to wait to have their transactions confirmed by external entities. The IOTA community will also be able to flexibly use the network across all aspects of the IOA protocol.
Importantly, Coordicide will help with a module and future proof, much like the Internet of Protocol. This upgrade is also expected to enable feeless data transactions that could open new business models based on micropayments. Lastly, the update will enhance reliance governance and open source operations.
What does this mean for Investors?
Launching the Coordicide will be a game changer for the IOTA community. The tests done so far, show great promise for IOTA’s investors. With new products expected after the launch, investors have a lot coming their way.