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In this #Crypto video, I will explain #IOTA Cryptocurrency & the IOTA #Tangle #protocol. I will Simply Explain, what is a Directed Acyclic Graph (#DAG)?
The first thing you should know about IOTA is that it is different than other #Blockchain projects. And that is because it doesn’t use a Blockchain at all. Instead, IOTA implements the concept of a Directed Acyclic Graph or DAG. And, At an extremely high level, In the simplest of terms a DAG is a Graph that never ends.
If we break it down a little further, you have Directed, meaning that all links between 2 items always have a set and specified direction. And the 2nd part is Acyclic, meaning that it is impossible to create loops inside the structure.
Now, The platform behind IOTA is called Tangle, and you can think of this as the structure where all the data of each transactions is stored. When a new transaction joins the tangle, it chooses two of the previous unverified transactions to approve, and by doing this, two new “edges” are added to the graph. When transactions are confirmed they become what is known as an Edge. An unconfirmed transaction is called a Tip.
New Transactions attach to at least one of the tips of the Tangle, an algorithm selects 2 tips at random. There is a validation process that occurs to make sure that transactions being validated are not conflicting with previous transactions (this prevents the problem double-spending). If one of the selected tips is not a valid transaction it is ignored and discarded and a new tip is selected at random. If everything checks out how it should, the new transaction is attached to the 2 tips it validated. The newly added transaction becomes a new tip of Tangle waiting to be verified in the exact same manner.
Tangle uses something called the #Winternitz signature which is a #hash-based #cryptography to validate transactions. Most blockchain projects use something called elliptic curve cryptography or #ECC.
The benefit of hash-based signatures is that you get much faster processing times than the ECC signatures.
However, In 2017, a vulnerability was found within the IOTA hash function. It was discovered that signatures could be easily forged, but developers quickly replaced the hash function with an upgraded version of the Secure #Hashing #Algorithm.
Using the Tangle technique makes IOTA extremely scalable, and the system is actually designed in a way so that network speed increases as more people use it. And because there is no need for miners, there is also no Miners fees. This makes IOTA free to use, which is great for micro transactions or exchanging data freely across any connected device in a decentralized way.
This technology is different than what most people are used to with Blockchain, but I think we may come to find out that there are many flavors of decentralization in this eco system.
When you look at the IOTA token the naming convention is a little confusing. However, to keep it simple, The main unit of measure is MIOTA, and if you’re looking to buy or trade on an exchange MIOTA is what you’re looking for.
What Is IOTA Cryptocurrency, IOTA Cryptocurrency & IOTA Tangle Simply Explained (MIOTA).
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Still, the network offers a whole bunch of marketing tools. Rates of interest for the different currencies are set in this market. This elegant mobile phone features a sd card slot that enables you to broaden the internal memory.
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After you install the wallet, it will take as much as a day for the wallet to sync with the network. Just as there are advantages, there are also a couple of drawbacks when trading alternatives.
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