IOTA vs Blockchain

There is something I don’t understand. Here in the US, every time I listen to a crypto influencer talking about IOTA, I hear mainly negative things. Like most of us, I am hooked on the crypto industry, and in 2016, I started looking into IOTA. I learned that IOTA has a different architecture from the traditional blockchain architecture, and I learned that if you come from the blockchain world, the tangle is not easy to understand. You need to learn that there are no miners, that proof of work is used differently, why transactions are free, why it is scalable, why it is not sequential, etc.

Transaction volume, storage space, and decentralization

For any platform-type of business, the lifeblood is transaction volume.

Miners, fees, and decentralization

With Bitcoin, you have blocks of a finite size, and you can put a certain number of transactions in them. These blocks are linked together sequentially like a pearl necklace, creating a bottleneck, as the network can only validate one block at a time, and you can only fit a certain number of transactions in a block. Also, the miners who validate the blocks are incentivized to pick the blocks with the highest fees, so with an increase in transactions, the fees go up. IOTA got rid of the blocks, removed the sequential architecture, and instead implemented a solution where every new transaction validates two previous transactions, similar to a mesh. Validating two previous transactions has become an intrinsic value of utilizing the tangle, and therefore, there are no fees or miners.

Development

If you want to start using a blockchain, you need to hire a blockchain expert. Developing and maintaining current blockchain-based programs is highly complex and requires specialist knowledge. Even simple programs require a good knowledge of that blockchain. With IOTA, it is different. It is simple to use the libraries and tools available. For example, within a few hours on a Raspberry Pi, I was able to create a simple program (less than 50 LOC) that uses an RFID reader and records data on the tangle. On the other hand, just try to create a token on the Ethereum blockchain and include some smart contract capabilities. It is not possible if you have not been trained.

So what am I missing?

From a purely logical point of view, the features of IOTA win most comparisons hands down, including the most important ones: true decentralization and scalability.