- A study by two leading Turkish universities has concluded that Tangle is superior to other types of DLT, including traditional blockchains, for the Internet of Things (IoT).
- Tangle’s touchless transactions, low power demand, and better scaling make it best suited for industries like IoT, which require massive amounts of low-cost transactions.
Tangle, a type of distributed ledger technology (DLT) on which networks such as IOTA are based, is much more suitable for sectors such as the Internet of Things (IoT), according to a new study by two leading universities in Turkey.
The study has been carried out by Bahçeşehir University and Siirt University and published in the Turkish Academic Research Review magazine.
1/8. A study by Bahçeşehir University and Siirt University, published in the Turkish Academic Research Review, compares #Blockchain and #Tangle technologies within the #IoT context. The verdict? Tangle comes out on top. Here’s why. 👇
— Salima (@Salimasbegum) October 14, 2024
Tangle is based on a directed acyclic graph (DAG), a data structure in which nodes are connected by directed edges that have a direction. DAGs are cycle-free, ensuring a clear order of transactions. In traditional blockchains, transactions are arranged into blocks and then added to the chain in a linear sequence. With DAGs, transactions are confirmed individually without the need for a block.
According to the study, one of the areas where Tangle outperforms traditional blockchains is in microtransactions, as it allows for sentimentless transactions. For a transaction to be approved, a participant needs to approve a previous transaction. This also eliminates the need for mining, making the process much cheaper. This is crucial for IoT, as individual devices send thousands of transactions each day between them, containing crucial data. A network like Ethereum, where fees are high for each transaction, would be unsuitable for IoT.
Currently, there are almost 20 billion interconnected IoT devices, a figure that experts wait to double by the end of the decade. Paying fees for each transaction from those devices would be unsustainable, even for networks with lower fees.
IOTA Tangle Beats Blockchain
Speed is also crucial for IoT. Imagine a world where traffic lights are automated through IoT: if there is a delay in the transmission of information between IoT devices, it could lead to fatal accidents, resulting in loss of life and millions of dollars in damage.
Therefore, any network that supports IoT must have high performance and no delay. This is another area where IOTA’s Tangle outperforms traditional blockchains. With Tangle, as the number of transactions increases, efficiency increases, it is not hindered as each new transaction confirms the previous ones.
Tangle is also energy efficient, unlike traditional blockchains. Each new transaction is used to confirm previous ones, so mining is not necessary. Mining is an extremely energy-intensive process; Experts estimate that BTC alone consumes more than 120 terawatt-hours (TWh) of electricity annually, exceeding the annual consumption of Argentina, the world’s 22nd largest economy with more than 45 million citizens.
With Tangle, IOTA is the undisputed leader in the sector. This has established IOTA as a leader in IoT, which was the industry it was originally designed for. However, as its founder Dominik Schiener told CNF in an exclusive interview this year, it has since expanded into other sectors, including the tokenization of real-world assets.
IOTA is trading at $0.1293, gaining marginally over the past day to take its weekly rise to 6.3%.
