On which platforms can IOTA be purchased?
Blockchain technology has changed the way we look at currencies. But is it already perfect? Can it still be improved? Many people have tried to find ways to advance blockchain technology and overcome its shortcomings. One of the inventions they developed is IOTA, which is the cryptocurrency for the Internet-of-Things (IoT) industry. IOTA uses a different technology called Tangle, which is based on Directed Acyclic Graph (DAG), instead of blockchains. Unlike traditional blockchains where users perform transactions and minors check transactions, at IOTA users are the verifiers. To issue a transaction, each node must check two other transactions. As the number of nodes in the network increases, the reliability of each transaction increases (as each transaction is verified by more and more nodes). The main advantage of IOTA is that there are no transaction costs. This makes it an ideal cryptocurrency for small volume transactions. Traditional crypto-currencies have a small fixed transaction fee, so making small-sum transactions is not very convenient. This cannot be eliminated because transaction fees are used as a fee for minors who verify transactions. But since IOTA does not differentiate between approvers and issuers, the need for transaction fees is eliminated
How it works: for what purposes can IOTA be purchased?
On a large scale, IOTA promises impressive features: fast transaction verification, zero fees, increased security, etc. But the network is not yet operating on a large scale. In order to maintain a certain balance in its development, IOTA relies on what is called a coordinator. The coordinator is intended to protect the network at a time when the volume of transactions is low. The plan is to disable this system when the network reaches a sufficiently high volume of transactions to be self-sufficient, leading to one of Iota’s main criticisms. It has been argued that, because Iota transactions are submitted to this Coordinator, and specific details on the functionality of the Coordinator are not public, Iota in its current state is effectively “centralized”. We can’t access the coordinator’s source code, so we can’t be completely sure what he’s doing. However, without this, it would appear that the network is exposed to certain vulnerabilities. This suggests that the coordinator retains some influence on the factors related to these vulnerabilities. According to Sergey Ivancheglo, a co-founder of Iota, the coordinator is currently being used to protect against a 34% attack. The 34% attack refers to a scenario in which an attacker can contribute more than one third of the total processing power of the network, allowing him to produce conflicting transactions
Any Iota user can independently operate a complete node. By doing so, you contribute to the processing power to maintain the validity of the blockchain. Now, without a mining reward, there is no economic incentive to operate one of these nodes. But a node can benefit a user if it already handles a large number of transactions, if it operates an application or system that benefits from a reliable connection to the tangle or reduction of transaction times, or if it simply wants to support the IOTA community. 34% referenced here does not refer to a simple 34% of the network. Devices linked to Tangle d’Iota are only exposed to a subset of the complete network. So, even if you were able to generate enough processing power to take control of 34% of the network very quickly, you should also find the entire network. Iota’s original proof of work algorithm is called Curl. Curl uses ternary logic, which means that the information is stored in three states, unlike the two traditional states of binary logic. Ternary logic is a characteristic of ancient Russian computer science. It can provide some types of performance advantages over traditional logic, but is not very practical to find or manufacture processors that take advantage of this logic at the moment. That’s where JINN comes in. JINN Labs is still in “stealth mode”, but they seem to be working on a ternary asynchronous processor for use in IoT applications. Several key members of Iota’s team seem to have been involved in its development. The hypothesis is that the JINN processor will be able to “chop” Iota’s ternary algorithm more efficiently than traditional processors. The goal is that JINN’s ternary processor will one day be integrated into the majority of IoT devices, offering these devices the ability to exchange value, and to secure Iota as a means of doing so.But the use of the Curl algorithm and ternary logic are at the basis of another criticism of the Iota platform. This algorithm was developed by members of the Iota team. Since cryptographic algorithms are loaded with sensitive information, they generally undergo a thorough evaluation before being used in real applications. Neha Narula and her team at MIT argue that Iota’s cryptography has not been properly verified. Narula says her team was able to generate a collision in Iota’s hash algorithm. In other words, with almost available computing power, they were able to identify 2 keys with the same value. This could provide attackers with the opportunity to generate conflicting transactions. In Ivancheglo’s response to Narula’s report, he argues that vulnerabilities were intentionally added to the code as a form of copy protection (which has raised other concerns) and that the coordinator makes it impossible to exploit these vulnerabilities. He also argues that the uniqueness of the system justifies the risk of developing specialized cryptography. The team has apparently published some adjustments to the cryptography used for certain tasks that cancel any security problems that may have existed.
Our review: should we buy IOTA?
The Iota project is very exciting. If the team is able to deliver even part of what they promised, the effects could be incredible. But it’s still too early to shoot shots at the comet. Therefore, it is recommended that you be patient and rigorously follow the developments of the team in charge of the IOTA project