IOTA plans gradual abolition of coordinator

IOTA, the DLT platform with focus on the Internet of Things (IoT), wants to get rid of its centralistic legacy, the “coordinator”. For this purpose, the Berlin-based IOTA Foundation has assembled a special team to initiate steps for the “Coordicide”, the death of the coordinator. The organisation has now explained on its blog what these steps look like.

Bitcoin profit is certainly one of the buzz words of the (expiring) year

The decentralized, public and unchangeable Bitcoin profit transaction history was made prominent by the Bitcoin protocol. In addition to blockchain technology, there are numerous other ways of decentralized accounting which is not a scam according to onlinebetrug. The term Distributed Ledger Technology (DLT) thus encompasses much more than just the blockchain. One of the best known blockchain alternatives is IOTA’s “Tangle”.

Unlike the blockchain à la Bitcoin, the Tangle has no miners and therefore no transaction fees. If you want to carry out a transaction in the tangle, you must confirm at least two previous transactions before the transaction itself becomes part of the tangle. Unlike a blockchain, transactions are not grouped into blocks and chained together in a row. Instead, each transaction becomes part of a Directed Acyclic Graph (DAG) of the tangles. New, unconfirmed transactions become “tips” of this graph until they are confirmed by subsequent transactions. A nice visualization of this tangle can be found here, for example.

Overall, the consensus procedure for IOTA’s tangle is much slimmer and more scalable than for a blockchain. However, the system only works if the number of “honest” transactions is significantly higher than the number of transactions carried out by malicious actors. The more participants the network has, it is assumed, the greater the number of honest transactions. Conversely, this means that a young network with relatively few participants becomes more vulnerable to attacks.

The role of the “coordinator” in the Bitcoin profit

In order to protect the Tangle in its early attacks, IOTA uses the so-called “coordinator” (also called “Coo”) to check: https://www.forexaktuell.com/en/bitcoin-profit-scam/ The Coo is a special node operated by the IOTA Foundation. It publishes zero-value Bitcoin profit transactions at regular intervals that fulfill a checkpoint function for the tangle. These transactions, also called “milestones”, determine the direction in which the tangle is spun. A transaction is only valid if the coordinator confirms it directly or indirectly with a “milestone”.

In the crypto scene, the use of the coordinator often meets with criticism, as it basically gives the IOTA Foundation the last word on the status quo of the network. Although the Foundation cannot retroactively invalidate transactions, it could de facto freeze deposits from participants in the network where the coordinator does not take their transactions into account when publishing new milestones. In addition, an attack on the coordinator could paralyze the whole tangle. Last but not least, the use of the coordinator limits the scalability of IOTA, which is actually one of the protocol’s greatest strengths.

Blocknet prepares for the launch of the product Blockchain

As a significant step towards the launch of the decentralized exchange, Blocknet (blocknet.co) is ready to end its temporary wallet and launch the service that serves the intrinsic value of its tokens.

Since the ICO in October 2014, the temporary wallet has served to secure its own tokens until the launch of the first intermediate blockchain application. The main focus in the development was on the application as a decentralized exchange: the start of the final blockchain is now the next step towards the application as a decentralized exchange, which offers the user the same functions as a central exchange, but with full data protection, freedom and the security to keep control over one’s own values.

With the successful testing of more and more trades on the decentralized exchange – now already with Bitcoin, Litecoin, Dash, Syscoin, Digibyte, Vertcoin, Duality Solutions, Viacoin, and Bitbay – Blocknet is now ready to close the preliminary wallet and create the basis for the emerging token ecosystems, with the core services of the decentralized exchange, control of blockchains and data exchange between different independent blockchains.

What is the business model of a Bitcoin formula?

Every service between the Bitcoin formula requires an impeccable cryptoeconomic architecture to ensure security and to guarantee the maintenance of the value of its network; but to be decentralized it is necessary to create a system without acting as an intermediary. This becomes very clear in the case of the use of Bitcoin formula as a decentralized exchange, which explicitly aims to exclude intermediaries or traders from trading tokens. Blocknet’s solution not only aims at creating the value of the own protocol for tokens, but also at the representation and pairing of the orders, while the user manages all the time his coins/tokens on his own system on his own responsibility. The key to this is called service node (in the following technical term service node).

Start of the Bitcoin trader Service

Service nodes receive trading fees on the decentralized exchange without having any control over the Bitcoin trader coins and without mediating between buyer and seller. They ensure the quality of the application on the decentralized exchange (Quality of Service, QoS), mainly by preventing unwanted spam requests – the structure will be explained in more detail in the soon to be published White Paper. In return, service nodes receive trading fees in the form of Blocknet tokens, which also increases the intrinsic value of the Blocknet tokens, mainly because each Bitcoin trader on the exchange generates buying pressure on its own tokens through a continuous stream of micropayments. With the launch of the Blocknet product blockchain, the technology of the service nodes will also move from the test network to it, enabling for the first time those wishing to offer such a service node to earn balancing fees. The development of the service nodes is not finished with the start on the main blockchain. Your development will be further developed as with any good software.

Strategic Advantages
The start of the final blockchain offers several strategic advantages. First of all, it serves to switch the code base to one that is properly branched with the Bitcoin core, significantly simplifying the implementation of BIP´s (Bitcoin Improvement Suggestions), which leads to an improvement in development time.

Bitcoin news all-time high: Ether breaks 100 US Dollar mark

This week is also proving very successful for the second largest digital currency, ether. In the morning hours between 3 and 4 o’clock the ether even reached a value of 106 US dollars.

The Bitcoin news of digital currencies

Probably more people know Bitcoin news, but Ethereum should be familiar to most people by now. Ethereum’s token is called Ether, ETH for short. Ethereum is a decentralized blockchain on which smart contracts can be executed. These Smart Contracts are decentralized programs and cover everything we somehow associate with the future: decentralized autonomous organizations (DAO), decentralized management of entire cities, new coins (indeed, Ethereum is also the basis for creating new coins on them) and much more Bitcoin news … As we can see, 7 of the Top 10 CryptoAssets are on the Ethereum platform. Anyone can design their own digital currency, with Ethereum it will work like child’s play in the future.

Share price development
The price of ether fluctuated within the last year. After its launch, the price was below USD 1. After rising awareness, the price exploded in January and February 2016 and reached a value of 13 US dollars within this period.

In the summer of 2016, the DAO disaster occurred. A platform built on Ethereum, The DAO, contained bugs that allowed a hacker to extract funds from the DAO. The disaster led to the split of Ethereum ETH and Ethereum Classic ETC. After a long and quiet year, the Ether Prize hardly developed – until recently.

The increasing popularity through the series “Silicon Valley” and lectures at universities led to a renewed increase for the top 2 crypto currency.

Ether was traded on Polonix in the last 24 hours for 122 million US dollars. Prices of up to $106 are said to have been reached on Bithone and Coinone, which in turn had a trading volume of $65 million and $34 million respectively.

Bitcoin news Lecture in Toronto, Canada

In addition to the Bitcoin news, Ethereum now gets an Ethereum Domain System (ENS). We use Domain Name System without noticing it in everyday life. None of us enter Google’s IP address into the URL search bar, instead we write “www.google.de” – an enormous relief.

Exactly this relief is now introduced in Ethereum by the ENS. Complicated and long addresses can be abbreviated by short names like “alice.wallet.eth”.

BTC-ECHO also asked Ethereum developer Fabian Vogelsteller at CeBIT about the new Ethereum upgrade. Ethereum itself has drawn up a plan. This plan consists of its own phases, the first two of which have already been implemented (Frontier and Homestead). It is expected that the next step will not be too long in coming.

At editorial time, the Ether price is 99.89 US dollar/ether.