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| Future of Currency may not Involve BLOCKCHAINS..... |
ALTHOUGH it may be hard to imagine Cryptocurrencies are far older than Block-chain technology. Most of us look at Bitcoin as the future cryptocurrency, although it is only the first Blockchain based currency.
Cryptocurrencies like
B-Money and BtdGold existed prior to Bitcoin, however,these didn't really go far, especially when judged against Bitcoin.
The problem with Cryptocurrencies conceived before Bitcoin was their centralised structure. Without Blockchain technology,there was no
Decentralised, immutable, transparent ledger in which transactions could be recorded, leading to centralisation.
Yes it looks like BLOCKCHAIN may not be the be-all, end-all of digital currency technologies.
Recently, a new form of crypto has emerged that leverages the
DIRECT ACYCLIC GRAPH {DAG} organizational model for the structure of its decentralised ledger, allowing old problems to be solved and new features to be added.
In a 2013 paper dubbed Accelerating
Bitcoin's Transaction Processing. Fast Money Grows on Trees, not Chains.
The authors
Yonatan Sompolinsky and Aviv Zohar introduce the
GHOST protocol which proposes a change to Bitcoin's structure from a Blockchain into a tree, reducing conformation times and improving security. Although this change has not been implemented in Bitcoin, other Cryptocurrencies are using the DAG- based system successfully.
Here are the Cryptocurrencies which using DAG:
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| BYTEBALL The DAG |
Byteball is a DAG- based Cryptocurrency. The first of its kind, Byteball is distributed through an airdrop process in which GBYTE, the native currency in the network, is distributed according to the users Bitcoin holdings. Recently GBYTE distribution has also begun to take place through cashback partnerships with participating merchants.
In Byteball,there are no Blocks, instead, transactions are linked directly to each other and each transaction contains one or more hashes of previous transactions. The set of links between the transactions form what is known as the DAG, as opposed to be the
Blockchain system used in Bitcoin and other Cryptocurrencies.
When compared with Ethereum, Byteball samrt contracts are not as powerful and not turning complete but they are simple, allowing them to be displayed in user-rradable form. This means that regular users can see what is actually going to happen to their money for themselves. Prediction markets are already working based on these contracts, and a recently introduced manual oracle feature allows anyone without technical knowledge to run a prediction market.
Lastly,legal compliance is addressed by Byteball through its asset issuing system.
Users can issue new assets and define rules that govern their transferability. The rules can include spending restrictions such as requirement for each transfer to be cosigned by the issuer of the asset, which is one way for financial institutions to comply with existing regulations.
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| IOTA the TANGLE |
IOTA is a unique Cryptocurrency. Although it also uses Directed Acyclic Graph {DAG} organizational model under the name TANGLE it's implementation and applications differ widely from Byteball. Designed specifically for the ioT { Internet of Things} industry, IOTA held a successful ICO in 2015, gathering 1,337 BTC and launched in BITFINEX earlier this year.
Apart from its distribution method, IOTA has several differences when compared to Byteball. For example, in IOTA, all transactions created must validate a minimum of two previous transactions. In order to do so, users must solve a cryptographic puzzle similar to those found in Proof of Work Cryptocurrencies.
The lack of fees solves two crital problems in the eyes of the IOTA developers.
The impact of micro-payments will increase in the rapidly developing IoT induaind, and paying a fee that is larger than the amount of value being transferred is not logical. Furthermore,it is not easy to get rid of fees in the Blockchain infrastructure since they serve as an invenince for the creator's of blocks.tgis leads to another issue with existing Cryptocurrency technology, namely the heterogeneous nature of the system. There are two distinct types of participants in the system,those who issue transactions and those who approve transactions. The design of this system creates unavoidable discrimination of some participants, which in turn creates conflicts that make all elements spend resources on conflict resolution. The aforementioned issues justify a search for solutions essentially different from Blockchain technology, the basis for Bitcoin and many other Cryptocurrencies....
IOTA's Goal is to allow value and date to be exchanged and transferred freely between these elements, allowing any IoT-enabled device, appliance, or vehicle to be used or rented in an efficient and trustless way. The data provided by devices can also be bought and sold through the IOTA network.
This concept allows the distributed economy movement to evolve in such a way that anyone will be able to make the most out of their belonglbel. In short, IOTA acts as a backbone for the exchange of value on the IoT paradigm in which devices produce value for their owner and not the other way around.
CONCLUSION:
Will DAG-Based Cryptocurrencies replace Blockchain? It's hard to tell. While there are evident advantages when it comes to these DAG systems,these are still far from being a popular alternative, and very few projects are working on it. Nevertheless,the projects that do seem to have earned their place in the Cryptosphere, especially IOTA, a Top-notch 15 Cryptocurrency by Market Capitalization.......
Thanks regards,
Vinay Kumar.
