IOTA Founders Dominik Schiener and David Sonstebo, believe that the blockchain cannot solve all problems that will emerge in the future so that is why the IOTA Tangle was developed, as we are reading more in the IOTA news today.
Bitcoin and Ethereum are not decentralized despite their blockchain technology, because the miners have great power in the network. In a new interview, the IOTA Founders Dominik Schiener and David Sonstebo talked about the mistakes of the past and what they have learned from past developments and experiences. IOTA was founded to solve major problems of blockchain technology and the Bitcoin blockchain can process 7 transactions per second while the fees remain high.
According to Sonstebo, these facts indicate that the technology is first stages still while the Scaling solutions are being developed but they are still not ready for use or are running without errors:
“But blockchain itself was what I would call a prototype. It’s what you build a minimum viable product. It works. It proves the different concepts, but it doesn’t really work when you want to scale it.”
The technical architecture of IOTA is realized by using a Directed Acyclic Graph and it has no limits on scalability while there are no transaction fees. The founders say this is the main reason why IOTA was developed in the past 5 years:
“That is what IOTA was created to solve. That’s why we’ve been through this journey for the past five years to develop a completely new architecture that removes the fees, removes the scalability, bottlenecks and also improves the decentralization.”
Schiener agrees with Sonstebo that the great vision of highly scalable blockchain technology becoming the new standard in public administration, energy management, and many other industries in a long way off. The possibilities and limits of the distributed ledger technology are being researched and the first results are being collected. It will still be seen whether blockchain will become established across the world. Both Bitcoin and ethereum are driven by mining and the transactions can be confirmed and settled. The difference is that the IOTA tangle leads to more centralization of both networks. Sonstebo says that you can have a say in the network if you can provide strong hardware resources to participate in mining:
“That isn’t decentralization. That’s a pseudo-quasi-decentralization. In reality, it’s just five or ten big operators that control the whole network. That’s Bitcoin. That’s Ethereum. That’s how they operate, and they will always operate this way. It’s the only way that they can operate.”
DC Forecasts is a leader in many crypto news categories, striving for the highest journalistic standards and abiding by a strict set of editorial policies. If you are interested to offer your expertise or contribute to our news website, feel free to contact us at [email protected]