The IOTA Foundation released a new paper in which they unveiled a new algorithm that would help the network to improve its scalability and combat spam attacks. As per the announcement made by the IOTA FOundation, ti would also be possible to fight against congestion in the network.
IOTA Foundation Unveils New Algorithm
The paper released by IOTA has been co-authored by Dr. Luigi Vigneri, the senior research scientist at the IOTA Foundation, who is also a member of the Coordicide team. The proposed three main changes to the algorithm behind IOTA.
The first one is that each transaction requires a computer to expend resources on a proof-of-work puzzle. The second says that the difficulty of the puzzle increases with the number of transactions sent over a given time period. Finally, senders can stake IOTA as collateral to reduce the overall difficulty of the puzzles.
Moreover, this research was presented at the May IEEE International Conference on Blockchain and Cryptocurrency. As per the blog post released by IOTA, the IEEE ICBC is a premier forum for the latest research in the field of distributed ledger technology (DLT).
About it, the official blog post reads as follows:
“Having a paper accepted and presented at IEEE ICBC is no small feat, and served as a true testament to the growth and strength of our research team. We look forward to sharing more research through public research forums such as these in the future.”
With this new algorithm, senders that have limited hardware or low collateral would be able to send a limited number of transactions cheaply. Those users with faster and specialized hardware (ASICs) would not be able to spam the network.
That means that actors with a large of computing power would not be able to control the network because they would also require larger amounts of collateral. IOTA works with a network called directed acyclic graph (DAG) and that allows multiple chains of transactions to co-exist. This implementation of DAG is known as Tangle.
Although the network allows for high scalability, it presents some other challenges related t decentralization and asset management challenges.
As reported by CoinMarketCap, IOTA is being traded around $0.477 and it has a market capitalization of $1.33 billion. The digital currency is the 17th largest digital asset in the market and in the last 24 hours, the virtual currency surged 6.84 percent.
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