Though IOTA and Blockchain are built on the same principle, they obey different architecture which makes them distinct. Let us have a look at some of the important differences of IOTA and Blockchain.
Feature | IOTA | Blockchain |
1. Data Structure |
IOTA, otherwise Tangle, is based on DAG (Directed Acyclic Graph). This enables transaction throughput without any fee involved. As more participants make transaction, the overall system becomes secure and fast. |
Blockchain data structure is an ordered, back-linked list of blocks. It is often visualized as a vertical stack, with one block layered on other. |
2. Consensus |
Every network making transaction can participate in consensus. Consensus is built-in part in IOTA and is intrinsic. |
It is achieved through a rigorous mechanism. It is usually decoupled from the transaction generation and is performed by a subset of the network that leads to centralization. |
3. Transaction |
Every transaction refers two past transactions and obeys the rules of Protocol. More transactions means more scalability. |
Often, smaller part, say, miners approve transactions. More transactions make scalability harder. |
4. Properties |
Tangle is a distributed ledger, which is scalable, light and transfers value without anything in return. It is a de-centralized peer-to-peer network. |
It is a P2P network, with no central party and executes probabilistic broadcast. |
5. Partition Intolerance |
Transactions are relayed by nodes and cannot occur without other layers of abstraction. |
Can happily operate without being connected to the main tangle. If they later wish to connect, they can easily do so. |
6. No Micropayments |
It has no transaction fee and can accept as small as 1 IOTA. |
In course of time, transaction fee has become impractical and crippingly became high. |
7. Obsolete Cryptography |
It uses ‘Quantum Resistant Cryptographic Algorithm’, which are immune to attacks. |
Bitcoin could be crippled by the sudden deployment of large-scale quantum computers. |
8. Centralization of Control | There is no separate mining in IOTA. Each viewer can be viewed as an independent miner. | Blockchain obeys centralized control. |
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