Tangle Definition
Tangle is a type of distributed ledger technology (DLT) that is used as the foundation for certain types of cryptocurrencies, most notably IOTA. Unlike traditional blockchain, Tangle does not use blocks or mining. Instead, it uses a directed acyclic graph (DAG) for storing transactions. This design allows for free transactions and high scalability, making it suitable for microtransactions and Internet of Things (IoT) applications.
Tangle Key Points
- Tangle is a distributed ledger technology that uses a directed acyclic graph (DAG) instead of a blockchain.
- It is used as the underlying technology for the IOTA cryptocurrency.
- Tangle allows for free transactions and high scalability, making it ideal for microtransactions and IoT applications.
- Unlike blockchain, Tangle does not require miners to validate transactions.
What is Tangle?
Tangle is a type of distributed ledger technology that is different from the traditional blockchain. It is used in the IOTA cryptocurrency and is designed to overcome the limitations of blockchain technology, such as scalability issues and transaction fees. Tangle uses a directed acyclic graph (DAG) for storing transactions, where each transaction is linked to two previous transactions. This design allows for transactions to be processed in parallel, resulting in high scalability and zero transaction fees.
Why is Tangle important?
Tangle is important because it offers a solution to some of the major issues faced by blockchain technology. It allows for high scalability, which is crucial for the growing demand for microtransactions and IoT applications. It also enables free transactions, making it more economical for users. Moreover, since Tangle does not require miners to validate transactions, it avoids the energy-intensive mining process associated with many blockchain-based cryptocurrencies.
Who uses Tangle?
Tangle is primarily used by the IOTA cryptocurrency. However, its potential applications extend beyond cryptocurrencies. Any industry or application that requires high scalability and free transactions can benefit from Tangle. This includes IoT applications, microtransactions, data integrity verification, and more.
When was Tangle created?
Tangle was created by the IOTA Foundation, a non-profit organization based in Germany. The IOTA cryptocurrency, which uses Tangle, was launched in 2015.
How does Tangle work?
In Tangle, each transaction is linked to two previous transactions. This forms a directed acyclic graph (DAG) of transactions. When a new transaction is made, it must approve two previous transactions. This is done by performing a small amount of computational work that verifies the transactions. This process of validation is what makes Tangle secure. Since each transaction validates two previous transactions, the network becomes faster and more secure as more transactions are made. This is in contrast to blockchain, where the network can become slower as more blocks are added.
