Distributed ledger technology (DLT) has been around for more than a decade, with blockchain being the most well-known and widely used system. However, there are other innovative DLT systems that are designed to overcome the limitations of blockchain, one of which is Tangle.
Tangle is a distributed ledger technology that uses a directed acyclic graph (DAG) instead of blocks and chains to record transactions and secure the network. In this smartbook, we'll explore what Tangle is, how it works, and its potential use cases.
Tangle is a decentralized ledger technology that is designed to be an alternative to traditional blockchain-based systems. Instead of using blocks and chains, Tangle uses a DAG to record transactions and secure the network.
The DAG is a mathematical structure that consists of nodes and edges, where each node represents a transaction and each edge represents a confirmation of two previous transactions. This approach allows Tangle to process transactions in a highly scalable and efficient way, without requiring specialized hardware or large amounts of energy consumption like some other blockchain-based systems.
The Tangle network is built around nodes that perform two functions: issuing and confirming transactions. When a new transaction is issued, it selects two previous transactions to confirm, and the confirmation process continues recursively across the network. Once a transaction has been confirmed by multiple other transactions, it becomes part of the Tangle and is considered valid. The confirmation process is automated and does not require miners, as each new transaction added to the network also verifies two previous transactions. This approach allows Tangle to achieve higher throughput and faster confirmation times than traditional blockchains.
Internet of Things (IoT):
One of the primary use cases for Tangle is in the Internet of Things (IoT) industry. Tangle's ability to process transactions in a highly scalable and efficient way makes it an ideal solution for enabling secure and fee-less transactions for IoT devices. For example, a Tangle-based system could be used to facilitate micropayments between IoT devices, such as a smart thermostat and a smart meter.
Supply Chain Management:
Another potential use case for Tangle is in supply chain management. Tangle's ability to record transactions in a decentralized and transparent manner could be used to track the movement of goods and ensure their authenticity. For example, a Tangle-based system could be used to record the origin and movement of a product from the manufacturer to the consumer, with each transaction confirmed by multiple other transactions in the network.
Tangle's ability to process transactions in a highly secure and efficient way could also be used for digital identity verification. By using Tangle to record and verify personal identity data, individuals could have more control over their personal information and reduce the risk of identity theft.
The most well-known implementation of Tangle is in the IOTA cryptocurrency. IOTA aims to facilitate fee-less transactions for the Internet of Things (IoT) devices using Tangle's directed acyclic graph (DAG) structure
Tangle is an innovative distributed ledger technology that has the potential to revolutionize the way we think about decentralized systems. Its use of a directed acyclic graph to record transactions and secure the network allows for highly scalable and efficient processing of transactions. With potential use cases in the IoT, supply chain management, and digital identity verification industries, Tangle is definitely a technology to watch in the coming years.