Transactions on IOTA Blockchain
Transactions on the IOTA Tangle, which is the distributed ledger technology used by IOTA, work differently than transactions on traditional blockchain networks. Here is an overview of how transactions work on the IOTA Tangle:
- Creating a transaction: To create a transaction on the IOTA Tangle, a user must generate a new transaction bundle containing information about the transaction, such as the sender’s address, the recipient’s address, and the amount of IOTA being sent.
- Confirming transactions: Before a new transaction can be confirmed on the IOTA Tangle, it must confirm two previous transactions. This confirmation process adds to the security and scalability of the network, as more users participate and confirm transactions.
- No fees: One of the unique features of the IOTA Tangle is that there are no fees associated with sending transactions. This makes it well-suited for microtransactions in IoT applications, where small amounts of data or value are exchanged between devices.
- Consensus mechanism: To prevent double-spending attacks, the IOTA Tangle uses a consensus mechanism called the Markov Chain Monte Carlo (MCMC) algorithm. This algorithm ensures that each transaction is validated by the network before it can be confirmed.
- Transaction history: Because the IOTA Tangle operates as a distributed ledger, each transaction is recorded on the network and forms a part of the transaction history. This history can be audited and verified by any user on the network, adding to the transparency and immutability of the system.
What is IOTA (Internet of Things Application) Blockchain?
IOTA is an open-source, decentralized blockchain technology that was designed to enable secure and efficient data transfer and management for the Internet of Things (IoT) ecosystem. Unlike traditional blockchain technologies, which use a linear chain of blocks to record transactions, IOTA uses a directed acyclic graph (DAG) called the Tangle to record and verify transactions.