Tangle: An alternative to Block chain for future of crypto currency
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The document discusses 'Tangle,' an alternative to blockchain for cryptocurrency, highlighting its structure, transaction validation process, and its advantages in scalability and decentralization. Unlike traditional blockchains, Tangle allows nodes to approve transactions without needing a centralized authority, using a unique consensus algorithm. The document also contrasts Tangle with existing cryptocurrencies like IOTA and Byteball, noting its potential to address issues faced by traditional blockchains such as bandwidth, storage costs, and centralization.
Tangle: An alternative to Block chain for future of crypto currency
- 1. Tangle: An Alternative to Block Chain For Future of Crypto Currency Presented by Kishor Datta Gupta Center for Information Assurance (CfIA)
- 2. Some Conceptual issue Center for Information Assurance (CfIA) • Block is not equal Bitcoin or any CryptoCoin. • Header of every block contains a hash of header of the previous block. • Mining is NOT about creating new coins. • Block is not limited to a definite number like Bitcoin/Cryptocoin. • Linked List outside between blocks & Merkle tree inside between transections. • Merkle roots do not verify transactions, they verify a set of transactions. • Merkle root will change if data tempered.
- 3. Simplified Bitcoin Block Chain Center for Information Assurance (CfIA)
- 4. Mining Logic Center for Information Assurance (CfIA) Joe's reward = Reward for mining block + transactions fees
- 5. Block Chain Issue Center for Information Assurance (CfIA) As a Block chain grows over time, nodes will need more and more storage capacity and a higher bandwidth (volume increases) to keep up-to-date with the transactions added to the ledger. Network Size Memory Storage Bandwidth Centralization
- 6. 8 Pool Contain 75% mining Center for Information Assurance (CfIA)
- 7. Some can have 51% Center for Information Assurance (CfIA)
- 8. LinkList vs DAG Center for Information Assurance (CfIA) LinkList Direct Acyclic Graph
- 9. Tangle Center for Information Assurance (CfIA) Same as block chain , tangle is also a distributed ledger, in which a network of independent accounts perform transactions among themselves, reaching consensus about who owns what without depending on a centralized authority. http://tangle.glumb.de
- 10. Tangle: Issue a transaction Center for Information Assurance (CfIA) • It chooses two other transactions to approve (in general, these two transactions may coincide), according to some algorithm. • It checks if the two transactions are not conflicting and do not approve conflicting transactions. • For the transaction to be valid, the node must solve a cryptographic puzzle
- 11. Tangle: Nodes Center for Information Assurance (CfIA) Full Node: store all transactions since the last snapshot. It is required to be online (= available to its neighbors) 24/7 Permanodes: is a Full Node that doesn't do snapshots and stores all transactions since the genesis transaction. Light Client: does not store any transactions. To make transactions, it has to has access to a Full Node. It asks the full node to publish its transactions. It does not have to be online 24/7. Swarm Clients: Full Nodes that run distributed on more than one device.
- 12. Tangle: Nodes Weight Center for Information Assurance (CfIA)
- 13. Tangle: Consensus Center for Information Assurance (CfIA) A node runs the tip selection algorithm many times, and see which transaction of the two is more likely to be (indirectly) approved by the selected tip. For example, if, after 100 runs of the tip selection algorithm, a transaction was selected 97 times, we say that it is confirmed with 97% confidence.
- 14. Consensus: tip selection algorithm Center for Information Assurance (CfIA) Instead of just randomly selecting two tips (or always using the newest two tips), there is a tip selection algorithm that is run and which will select the tips, to make sure that tips are chosen in a way to make the tangle converge (have all transactions approved) quickly. IOTA Use Random Walk Markov Chain Monte Carlo algorithm
- 15. Consensus: Orphaned Center for Information Assurance (CfIA) if a node issues a new transaction that approves conflicting transactions, then it risks that other nodes will not approve its new transaction, which will fall into oblivion." In order to find transactions to approve that are unlikely to lead its own transaction to be orphaned, a node runs a "tip selection algorithm."
- 16. Incentive: For Node to Run Center for Information Assurance (CfIA) Every node calculates some statistics, one of which is how many new transactions are received from a neighbor. If one particular node is “too lazy", it will be dropped by its neighbors. So, even if a node does not issue transactions (and hence has no direct incentive to share new transactions that approve its own one), it still has incentive to work hard.
- 17. Incentive: For Full Node to Run Center for Information Assurance (CfIA) • Hope that people are generally good • Almost all server run 24*7
- 18. Possible attack scenarios :Double Spending Center for Information Assurance (CfIA)
- 19. Possible attack scenarios :Parasite Chain Center for Information Assurance (CfIA)
- 20. Tangle Applications: IOTA Center for Information Assurance (CfIA) • Uses a coordinator to issue all node a certificate. • Not distributed yet per definition, but decentralized. • Uses Quantum Resistance cryptography • No mining so No transection fees • Partition intolerance IOTA is a Crypto Currency designed for the Internet of Things.
- 21. Tangle Applications: Byteball Center for Information Assurance (CfIA) • Has Transection Fees • Use a MC(main chain) algorithm to define transaction order • Need time to verify transection • Can remove orphan nodes Byteball is a Crypto Currency similar to IOTA with additional features
- 22. Tangle Applications: Git Center for Information Assurance (CfIA) Git actually use tangle type consensus to commit its code In simplified form, git object storage is "just" a DAG of objects, with a handful of different types of objects. They are all stored compressed and identified by an SHA-1 hash (that, incidentally, isn't the SHA-1 of the contents of the file they represent, but of their representation in git).
- 23. Tangle Advantages over block chain: Scalability Center for Information Assurance (CfIA)
- 24. Conclusions Center for Information Assurance (CfIA) A Tangle can solve many problems blockchains are facing right now • Bandwidth • Storage cost • Centralization • Scalability • Micropayments