The blockchain craze continues unabated as more companies create new applications faster than ever. The architecture made popular by Bitcoin and its contemporaries has proven to be a useful tool that offers better security and transparency, leading to its growing adoption in several industries thanks to its effective communications and public ledger.
Even so, blockchain’s meteoric rise has not been without speed bumps, and there have been instances where it has shown weaknesses that could prove to be major challenges down the road.
In an industry such as the Internet of Things (IoT), blockchain’s capabilities have proven to be a particularly strong fit. Interconnected devices require rapid and transparent verification of data, something blockchain’s ledger can handle exceptionally well. However, some have complained that blockchain’s somewhat rigid architecture makes it well-suited for robustly storing small amounts of data. This means it’s not truly scalable for things such as big data storage that has come to be synonymous with IoT.
This and other concerns led a team of developers to launch IOTA, a cryptocurrency platform designed for the demanding IoT ecosystem. With a twist on the traditional blockchain the company calls Tangle, IOTA claims to provide zero-fee transactions, as well as a unique verification process that resolves many of the scalability problems associated with Bitcoin.