What is tangle?
Tangle is the transaction processing and storage mechanism of IOTA, a cryptocurrency network developed to enable free microtransactions for the growing ecosystem of Internet of Things (IoT) devices.
How does Tangle work?
One notable drawback of blockchain-based cryptocurrencies like bitcoin is the concept of transaction fees that are applied to all transactions that occur on the network regardless of the transaction value. Unfortunately, the working mechanism of blockchain-based cryptocurrencies inherently requires payment of transaction fees, as that is the driving force for block creators (miners) and those who confirm and approve transactions. different. This group of participants is necessary to keep the blockchain alive, nimble, and functional.
The successor of Blockchain
Since the number of micropayments of small size, like those involved in small amounts, is expected to increase significantly in the near future, these transaction costs will make the use of blockchain-based cryptocurrencies become impractical for such small payments. High transaction costs have led to Bitcoin Dust problems, where sharded bitcoins do not work because they cannot be transacted due to high cryptocurrency mining fees.
Enter IOTA, a distributed public ledger that uses a specific data structure called Tangle, a directed acyclic graph (DAG) structure, to store transactions that occur on the public ledger. It does not incorporate blockchain technology, thus trying to solve the problem of transaction costs by using the Tangle storage system.
Tangle’s mechanism of action requires a new transaction to approve two previous transactions. Essentially, Tangle forces a participant to issue a transaction, or node, that contributes to the agility and security of the network by getting him/her to approve two previously pending transactions. The nodes also ensure that there are no duplicate transactions resulting in double spends and that there are no conflicts between different transactions according to the Tangle transaction history.
In the event of a collision, the nodes are expected to reject an ideal transaction. Nodes are free to approve all types of transactions and can also approve failed transactions. In case a new transaction is issued by a node that approves a erroneous transaction, it will not be approved by other nodes, thus maintaining the integrity of the network. Due to this additional approval mechanism, genuine transactions are approved by the system with a higher degree of confidence.
Technically, the following workflow happens on the Tangle. To issue a transaction, a node selects two other transactions to approve based on a predefined algorithm. In case of two conflicting transactions, they are rejected by the node. In case the two transactions do not conflict, they are approved by the node. In order for a node to issue a legitimate transaction, it is necessary to solve a cryptographic puzzle similar to the implementation of the Bitcoin blockchain. It does so by finding a nonce whose hash is concatenated with data from approved transactions in a particular form. It differs from the Bitcoin protocol, where the hash is required to have at least one zero specified.
This workflow ensures that energy and resource-intensive mining fees are removed from the transaction. It turns IOTA into a free system suitable for micropayments, including automatic payments between trusted parties – like paying a parking fee a small amount by the driver to the parking operator. car.
In the whitepaper, Tangle is described as the successor of blockchain – succeeding blockchain is its next evolutionary step and provides the features needed to establish a machine-to-machine micropayment system.
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According to Tapchibitcoin.vn
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