Chapter 6Conclusion

The goal of this website has been to introduce the concepts behind Coordicide and its various modules. The following list summarizes the implications of these modules, explaining the properties a Coordinatorless network will bring to the table:

Complete decentralizationWithout the Coordinator, no entity will have a special role in the network. For absolute clarity: once the Coordinator is deprecated, it will not be possible for the IOTA Foundation to restart it.
Permissionless networkAnyone can join the network at any time. Where other DLTs have to limit their node numbers, or even introduce a permissioned approach for scalability, our approach embraces additional nodes. A greater number of honest nodes improves the security of the network by increasing the share of honest votes.
Finality within secondsThe voting process allows the network to make and finalize decisions on transactions very quickly, without having to wait for multiple additional approving transactions to increase certainty. In addition, the network can reach “true finality” (deterministic rather than probabilistic) in that an attacker with unlimited hashing power could not “reverse” the ledger state.
Reliable timestampingThe transaction’s issuer (node/user) sets a timestamp at the point of issuance. Reaching a consensus about the credibility of timestamps is important for smart contracts (see IOTA’s Future section).
Scalability in node numbers and transaction throughputThere are no protocol-related bottlenecks. Scalability is limited only by hardware and the laws of physics. The removal of the Coordinator as a single entity that processes and verifies all transactions lays the foundation for a dynamic sharding/slicing process, which enables ‘real’ unlimited scalability.
Adaptive rate control algorithmAn adaptive rate control algorithm that works on a per-node basis will make it impossible for attackers to overwhelm the network with unhealthy spam, while still allowing honest nodes to operate normally.
Increased reliability (a reduced need for reattachments and promotions)Determining the preferred part of the Tangle by voting enables the implementation of differing tip selection strategies through which most (if not all) honest transactions will be picked up. This reduces the need for reattachments and promotions.
SecurityThe novel sybil protection mechanism leads to extremely high amounts of mana, and, together with the additional security layers of the voting mechanism, secures the network even in the presence of a large number of adversaries.
Smart and robust autopeeringRemoving the need for manual peering reduces the maintenance burden for node operators and makes the network more robust.
Feeless transactionsThe absence of miners makes IOTA transactions completely feeless, enabling micropayments for both humans and the machine-to-machine economy.
Quantum robustnessThe Winternitz one-time signature scheme makes IOTA robust against quantum computers when they become widely available.
Data transactionsData transactions enable use cases of the technology that go beyond finance.
Local SnapshotsLocal snapshots allow nodes to keep only a subset of the ledger’s history, allowing nodes with limited hardware resources to take part in the network.
FairnessAll transactions are treated equally. There is no way to pay a premium (e.g. through increased fees) to get increased priority when being processed by the network.
LightweightLow-power devices are able to issue transactions and take part in the consensus.
ModularityA modular design makes it possible for the protocol’s constituent parts to be developed independently. The layered approach allows for base protocol extension in a similar way to the internet protocol itself.
Reliable governanceThe non-profit organization behind IOTA streamlines the network’s adoption and future development. The absence of miners allows new features to be implemented without a collusion of interests.
Open SourceThe technology is free, open source, and anyone can build solutions on top of it.
PromotionAttaching empty transactions that reference both the original transaction and newer parts of the Tangle in an attempt to get “picked up” by random walks.
ReattachmentResending a transaction by redoing tip selection and referencing newer tips by redoing PoW.