IOTA Price Climbs 12.5%; Hard-Forking Beats and Killing Coordinators
The internet-of-things focused cryptocurrency, IOTA (MIOTA), gained 12.5% during Tuesday’s resurgent market spike. With Bitcoin now flirting with $9,000 for the first time in over a year, its rising tide has helped lift IOTA to its highest valuation since November 2018.
But there’s still some fruitful development occurring over at IOTA which may also have added to its positive performance on the day. The team have been engaged in efforts to increase decentralization on IOTA’s Tangle – a ‘modified’ version of the blockchain. This included plans to commit ‘coordicide’; or remove the Tangle’s network coordinator- a trusted authority figure who oversees the network, but also a central point of failure.
In the past 24 hours, IOTA was confirmed for storage on the Ledger Nano X, added to the Trinity crypto wallet, and became host to music stored on its blockchain. More below.
IOTA Price Awakes From Slumber – MIOTA/USD
From Monday night’s low of $0.409141, the value of one MIOTA coin jumped 12.5%, to a new six-month high of $0.460405.
IOTA’s recovery had been slow in coming – since the December low it has now gained 120%, while Ethereum (240%), Litecoin (400%) and Bitcoin Cash (500%) have already soared well past those numbers.
CoinMarketCap reported $55 million worth of trades, with more than 50% of that sum coming from Binance and Bitfinex alone. OpenMarketCap reports a $33 million turnover from the same two exchanges.
Push Towards Decentralization
IOTA had been making noises about removing its network coordinator for some time. The graphic below, courtesy of the IOTA blog, shows the precarious nature of blockchain security, scalability and decentralization – known as the ‘scalability trilemma’.
Picking any two comes at the cost of another. Bitcoin is secure and decentralized, but try to scale its Proof-of-Work blockchain and you run into problems. The entire hardfork saga, and the very creation of Bitcoin Cash (and then Bitcoin SV) centered around this sole issue, such is its deemed importance.
At the opposite end of the scale we have something like the Visa/Mastercard network. It scores high on scalability and security, but is centralized on just a handful of servers worldwide. (This is why you should never trust ICOs promising ‘1 million tps’ – speed comes at a cost).
IOTA’s plans for cutting out is centralized coordinator were covered back in March. Read: IOTA’s Coordicide Leads to FC Barcelona While Internet-of-Things Gets Nitrous Boost.
Co-founder Serguei Popov addressed followers in a video posted by the IOTA blog on Tuesday. Speaking from Barcelona, he said the main aim of figuring out the removal of the coordinator had been achieved. But the battle isn’t over.
‘Blockchain Music’ – Hard-Forking Beats
One thing IOTA has to contend with is its non-blockchain architecture. IOTA’s Tangle uses a directed-acyclic-graph (DAG) structure, which doesn’t utilize traditional miners. Read more in this breakdown from the Fantom (FCT) blog – another ‘blockchain’ project which opted to use the DAG.
In other news, IOTA made it to two new crypto wallets on Tuesday – Trinity, and the Ledger Nano X. And in what might be a first, the ability to create music on the Tangle is now available on Celody.
In the words of IOTA News, which tweeted a link to the site on Monday, Celody is:
“An open source, generative music system that creates music streams with #IOTA. Streams are composed in real-time & can be forked, merged, modified & published. Every listen is a unique experience because streams are composed using pseudorandomness.”
Music tracks are uploaded to IOTA, where they can be played and modified – or forked, and then re-uploaded as a new track.
Disclaimer: The author owns Bitcoin, Ethereum and other cryptocurrencies. He holds investment positions in the coins, but does not engage in short-term or day-trading.
Featured image courtesy of Shutterstock. Chart via CoinMarketCap.