IOTA, a leading cryptocurrency known for its DAG (Directed Acyclic Graph) technology, is aiming to solve the common bottlenecks found in standard blockchain architectures. Its Tangle architecture facilitates the parallel processing of transactions, enhancing scalability and operational efficiency.
The Tangle’s unique capacity to support simultaneous additions of blocks, in contrast to the sequential approach of blockchain, enables continuous and parallel transaction processing. This optimization of computational resources is essential for handling high volumes of transactions.
Unlike cryptocurrencies that rely on tokens for transaction fees and external validators or miners, IOTA adopts a different strategy. It operates without the need for tokens to cover fees or validators, focusing instead on a triple-entry bookkeeping system and PoW (Proof-of-Work) to validate transactions.
This distinctive approach ensures that transactions on the IOTA platform are not only cost-effective but also safeguarded against possible manipulation, promoting smooth and secure transaction transfers.
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