Tangle
Tangle Key Points
- Tangle is a technology that underpins the IOTA cryptocurrency platform.
- Unlike blockchain, Tangle does not require miners or blocks to validate transactions.
- It is a type of Directed Acyclic Graph (DAG) that supports the fast completion of transactions and increases the scalability of the platform.
- Tangle’s unique structure allows for free and unlimited scalability.
- Each transaction on Tangle confirms two previous transactions, making the system self-validating.
Tangle Definition
Tangle is a distributed ledger technology, essentially an alternative to blockchain, designed to solve the scalability and transaction speed issues of cryptocurrencies. It forms the backbone of the IOTA platform and does not involve miners or blocks to validate transactions. Instead, each transaction verifies two previous ones, leading to a self-validating system.
What is Tangle?
Tangle is a distributed ledger technology used by IOTA. Unlike blockchain, Tangle does not use blocks or miners to validate transactions.
In Tangle, each new transaction must approve two previous transactions. This is achieved by performing a small amount of computational work that verifies the transactions.
This unique structure allows the system to be self-validating and leads to fast transaction completion times.
Who Uses Tangle?
The primary user of Tangle is the IOTA platform, a cryptocurrency designed for the Internet of Things (IoT).
IOTA uses Tangle to enable secure, feeless, and fast transactions between machines on the IoT.
Because of its scalability and speed, Tangle is also being explored by other industries for various applications.
When Was Tangle Created?
Tangle was created in 2015 as the underlying technology for the IOTA platform. It was developed by the IOTA Foundation, a German non-profit organization dedicated to developing next-generation protocols for the connected world.
Where is Tangle Used?
Tangle is used wherever the IOTA cryptocurrency is in play. Its primary use case is for financial transactions within the Internet of Things (IoT).
However, due to its scalability and speed, Tangle is also being eyed by other industries, such as supply chain management, voting systems, and secure messaging, to name a few.
Why is Tangle Important?
Tangle is important because it offers a solution to the scalability and transaction speed issues faced by the blockchain.
Without the need for mining and blocks, Tangle can process transactions more quickly and efficiently, which is particularly beneficial for systems like the IoT, where large numbers of transactions are expected.
How Does Tangle Work?
In Tangle, each transaction is represented as a vertex in a directed acyclic graph (DAG).
When a new transaction is made, it must approve two previous transactions. These approvals are represented as edges in the graph.
To approve a transaction, a node must solve a cryptographic puzzle, similar to mining in a blockchain. However, in Tangle, every participant making transactions performs this validation, making the system more democratic and scalable.