- The IOTA Tangle aims to achieve a collaborative consensus validated by the “economic actors of the world”.
- According to Hans Moog, today’s DLTs have failed because they try to “build a system in a vacuum”.
IOTA developer Hans Moog has given an interesting insight into the workings and concept of the Tangle technology via Twitter. In a series of tweets published a few hours ago, Moog raised the question of whether a Distributed Ledger is more secure when it is jointly validated by the “economic actors of the world”, such as companies, corporations, foundations, states, people, among others, or by an “anonymous group of wealthy crypto holders”.
According to Moog, there are several good reasons why the first model, which is followed by the IOTA Tangle, is superior to the second model, which is followed by all other projects like Bitcoin, Ethereum or even Cardano. From a technical point of view, Moog explained that current Distributed Ledger Technologies (DLTs), both Proof of Work and Proof of Stake, are inherently difficult to fragment into shards:
The more shards you have, the more you have to distribute your hashing power and your stake and the less secure the system becomes.Real world identities (i.e. all the big economic actors) however could shard into as many shards as necessary without making the system less secure. Todays DLTs waste trust in the same way as PoW wastes energy.
Looking ahead, knowing that critics will counter the argument that the big economic players cannot be trusted nowadays, the developer of the IOTA Foundation explained:
Is a secure money worth anything if you can’t trust the economic actors that you would buy stuff from? If you buy a car from Volkswagen and they just beat you up and throw you out of the shop after you payed then a secure money won’t be useful either
In this sense, Moog stated that ultimately, things like trust in entities must be built into the technology for Distributed Ledger technology to work and succeed. According to Moog, the example of Wirecard shows that “ trusting a single company is problematic but trusting the economy as a whole should be at least as secure” as today’s DLTs. Once sharding is added, Moog added, it “will be orders of magnitude more secure.”
Ultimately, according to Moog, today’s DLTs have failed because they try to “build a system in a vacuum” and completely ignore the environment and things that already exist. Mat Yargar, Head of Mobility and Automotive at the IOTA Foundation, agreed with his colleague and explained:
I talk about this quite often and reference our consensus as a maximally distributed consensus model over a maximally distributed system design (IoT/Edge). And often refer to it as the pay if forward consensus model. I like the term “collaborative consensus” too though.
Moog added that a blockchain with equally weighted validators cannot work, which is why IOTA has chosen a “collaborative consensus”:
Blockchain does not work with too many equally weighted validators. If 400 validators produce a validating statement (block) at the same time then only one can survive as part of a longest chain. IOTA is all about collaborative validation.
Within the Twitter community, Moog’s statements received a lot of approval. But there were also critical voices. For example, Olaf van Wijk, a developer from the IOTA ecosystem, explained that many people have lost confidence in governments and businesses, which has led to cryptocurrencies as a counter-movement. In this sense van Wijk commented:
Fundamentally I agree with you, however I believe the ‘system’ is rotten to the core. All I hope is that one of the best tech to change it won’t fall victim to it. Or comes down crashing with it.