IOTA, a distributed ledger and open source cryptocurrency, currently has major updates. The first update talks about the incorporation of multi-asset multiverse while the latter is about IOTA 2.0 DevNet.
Multi-active multiverse
IOTA has developed a whole new ‘leaderless consensus’, based on ledger statements based on parallel reality and tangle voting (aka ‘multiverse consensus’). It allows every node to have its own opinion about the order of transactions on the network.
At any given moment, there are many versions of the IOTA ledger. One “reality” for every node. These realities can conflict with each other.
IOTA chief executive Linus Naumaan pointed out the same in a blog post. As mentioned above in the tweet, the IOTA Foundation plans two distinct updates:
The tokenIThe station framework will introduce a host of new features. These new functionalities include SimpleOutputs, ExtendedOutputs, Token foundaries, Aliases, and NFT Outputs. More details about individual aspects were mentioned in the said report.
The tokenization update also comes with a second update called “Dust Protection”. It will combine almost every use of the IOTA network to the IOTA token — while remaining feeless.
However, this “no-cost” approach leads to a unique problem. Especially when someone uses IOTA’s feeless protocol to simply take 1 MIOTA (1 million IOTAs, currently worth around $1.30) and send each IOTA to 1 million individual UTXOs on the Tangle.’
“The result would be an explosive database that the nodes would be unable to manage. Moreover, this damage would be permanent, since nobody could ever retrieve all these micro-amounts (called “dust”) from these UTXOs,” the blog stated.
Here is a solution, to link the use of the database to the ownership of IOTA tokens. Consider this, all unspent transaction output (UTXO) inhibits a certain data size.
“Exits will only be allowed to exist in the Tangle if they are backed up by an IOTA token repository that is on the same UTXO. The size of the deposit will be proportional to the space they take up in the shared database.”
Meanwhile, these two updates will also increase the demand for IOTA tokens. Well, here’s how. Tokenization update will vastly increase possible use-cases whereas “dust protection” update will join EVERY use-case to IOTA token demand.
Asked about the timing of the execution, Nauman wrote:
“Both the tokenization and dust protection updates are currently well advanced RFCs (request for comment documents). They will need further consideration before being implemented on the IOTA Chrysalis test network for intense and in-depth testing. “
IOTA 2.0 DevNet
This step is probably the most important milestone for the project since its inception. The IOTA team tweeted about the successful upgrade from IOTA 2.0 DevNet.
Hans Moog, one of the senior technical IOTA executives reiterated the same excitement concerning this important step. Now, regardless of the aforementioned information, its native token didn’t quite render the same uptrend. At press time, it was trading at the $1.31 mark, but has seen a 4% decline in the past 24 hours.
Overall, it will be interesting to keep an eye on this emerging ecosystem and the price trajectory of its native token in the coming days.
Nevertheless, the European Commission selected the token last month to feature in its blockchain infrastructure project despite its low position. This selection is presented as a possible action that could pave the way for the future growth of MIOTA.
