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- IOTA 2.0 is designed to enable digital autonomy, underpinned by key principles such as accessibility, parallelism, and sustainable tokenomics.
- Billy Sanders, Director of Research at the IOTA Foundation discussed the protocol’s snapshot files and commitments, its unique approach to block creation, the introduction of a validator system.
IOTA developers and research scientists have been working hard for the release of IOTA 2.0 which would bring more decentralization into the platform. IOTA research scientist Andrea Villa recently shared details about the progress made and how IOTA 2.0 stands out in the DLT landscape.
The IOTA research scientist explained that IOTA 2.0 distinguishes itself in the DLT landscape through its unique data structure, where the Mempool is seamlessly integrated into the data structure, unlike traditional blockchains. This integration enables continuous and parallel transaction voting across the network, fostering a more dynamic and flexible consensus mechanism compared to conventional blockchains that rely on block-by-block approaches.
Great summary on the features and benefits of #IOTA 2.0 It will be a beauty! 🥳 pic.twitter.com/co59HW68gF
— bennnni.web3 (@bennnni_web3) November 6, 2023
He further stated that the inherent inclusion of the Mempool within the Tangle simplifies conflict resolution, eliminating the need to wait for the next block to address conflicts. Instead, conflict resolution happens in real-time, resulting in a more responsive and agile system.
Looking ahead to the future and the introduction of extended Layer 1 programmability, IOTA 2.0 is well-positioned to address critical issues like Miner Extractable Value (MEV). Unlike traditional blockchains susceptible to MEV due to miners manipulating transaction order within a block, IOTA’s architecture naturally avoids these pitfalls by not relying on block or miner-based transaction ordering.
This approach contributes to a more stable and fair network environment. In summary, the separation between block proposers and builders is an inherent feature of the data structure itself, rather than an add-on to an existing mechanism.
Understanding the Working on IOTA 2.0
In a recent video address, Billy Sanders, the Director of Research at the IOTA Foundation, delved into the workings of IOTA 2.0. The video aimed to provide clarity and insights into the core principles and functioning of this transformative protocol.
Sanders outlined the primary goal of IOTA 2.0, which is to empower individuals with digital autonomy. To achieve this, he emphasized the importance of adhering to specific design principles, including accessibility, parallelism, volume, velocity, social integration, and sustainable tokenomics.
One key aspect of IOTA 2.0 involves the use of snapshot files, which contain critical data about the ledger state. To ensure the accuracy of these snapshots, the protocol compresses them into commitments.
Sanders compared traditional blockchains to IOTA 2.0, highlighting a key difference. In traditional blockchains, block producers control the selection and inclusion of transactions in blocks. In contrast, IOTA 2.0 allows users to create their own blocks, thereby bypassing the need for a central authority to decide the processing of transactions.
To prevent spam and ensure efficient network operation, IOTA 2.0 introduces congestion control. Users need to burn Access Credits, known as “Mana,” to create blocks. There is a dynamic adjustment of the burn rate based on network conditions, making spamming economically unviable.
Also, the generation of Mana happens by locking IOTA tokens to user accounts. This system regulates the rate at which users can create blocks. To deter double spending, users must make a deposit, which can be “overburned” if they attempt to spam the network.
IOTA 2.0 Validator And Rewards System
IOTA 2.0 introduces a validator system, where users can either stake tokens to their accounts or delegate their stake to others. Accounts with the most stake become validators, enhancing network security. The gossip protocol helps to propagate blocks across the network. Sanders explained that IOTA 2.0 organizes blocks into a directed acyclic graph (DAG), promoting parallel processing of transactions.
Unlike many blockchains where validators receive token rewards, IOTA 2.0 rewards users with Mana. Later, users can use the same Manafor network access. This incentivizes long-term investment in the protocol and ensures sustainable tokenomics.
Sanders encouraged users to engage in an upcoming Ask-Me-Anything (AMA) session to address any questions or concerns related to IOTA 2.0. The IOTA 2.0 protocol, with its unique approach to decentralization and network security, also seeks to redefine the future of digital autonomy.
