Cryptocurrency is a digital type of money that transfers and verifies funds using encryption. Bitcoin is the most widely used cryptocurrency for which Blockchain technology was created. Despite the fact that Blockchain has been the standard cryptocurrency technology for the past few years, problems such as speed and scalability have led to the creation of alternative technologies.
Tangle is a relative newcomer in the cryptocurrency world. In this post, we will discuss the recent debate between Tangle and Blockchain and decide which is superior.
What is Blockchain, and how does it work?
Blockchain is a cryptographically encrypted ledger of transactions. It embraces Bitcoin, Litecoin, and Ethereum as well as other cryptocurrencies. The ledger is made up of transaction blocks, each of which is cryptographically connected to the next. Each block is linked to the one before it, allowing the ledger’s entire history to be preserved.
Nodes refer to all of the machines involved in these transactions. A transaction must be authenticated by each node independently. This means that a transaction will take place after both nodes have confirmed it. This is what gives Blockchain its high level of security.
Miners are some of these nodes who are rewarded for checking transactions and maintaining network integrity. For more block incentives, miners expend a lot of money on application-specific integrated circuits (ASICs). This bonus is measured as a percentage of the transaction fees.
In addition, Blockchain facilitates the advancement of decentralized applications. No one has authority over these applications, and you have full control over your data.
Advantages of Blockchain
There is no single point of failure since blockchain data is spread through many systems on a network. This ensures that data can still be accessed from another node on the network if one fails or shuts down. Additionally, blockchain is immune to malicious attacks and technological failures, enhancing the storage’s strength.
Blockchain is a highly encrypted system in which data can’t be changed or tampered with unless the parties that formed the transaction block agree. Furthermore, each node that joins the blockchain is given a unique ID that is associated with the account. This means that the transactions are being carried out by the account owner.
Modifications made by parties can be easily traced back using this ID.
Blockchain, unlike conventional financial systems, processes data very quickly.
Disadvantages of Blockchain
The nature of the blockchain, as well as the fact that each node is expected to hold an updated version of the ledger at times, makes scalability a major concern. The network becomes more constrained as the number of transactions grows.
Modification of data
In a blockchain, data alteration is extremely difficult because once written, it cannot be undone. As a result, if anyone wants to erase any signs of a transaction from the blockchain, he would have a difficult time doing so.
Protection is paramount.
The 51 percent attack can compromise blockchain, despite its high security. In this data cyber-attack, the hacker can gain control of the entire network if he or she can control 51 percent or more of the nodes.
What is the concept of the tangle?
Tangle is a cryptocurrency exchange technology similar to Blockchain. A guided acyclic graph (DAG), which resembles a distributed ledger, is used here. DAG is not regulated by any outside authority, such as a bank or financial institution.
The best part is that Tangle is IoT-friendly (Internet of Things). The Internet of Things (IoT) is a network of interconnected devices that can communicate and exchange data. This means Tangle will be able to handle large-scale transactions between various connected devices in a fast and seamless manner.
There are no miners.
Since there are no miners on Tangle, no payments or prizes must be charged to them. Miners often have a tendency to block such transactions, which is not likely in this case.
Tangle has higher scalability and flexibility than Blockchain. Tangle’s scalable data units allow it to migrate training bits of data and process micro-transactions. In this technology, transactions are processed very quickly.
Disadvantages of Tangle
- It is less accurate since the technology is still being developed and tested.
- Less safe – The technology is susceptible to hacking.
- Decentralized applications are not funded.
Tangle vs Blockchain: The Final verdict
To address the discussed question, “Tangle vs Blockchain – which is better?” we first need to understand the fundamentals of both cryptocurrency technologies. If you are new to cryptocurrencies, Blockchain is the best solution since it has been extensively checked. It is much more stable than Tangle and allows for decentralized applications. For cryptocurrency transactions, more businesses and consumers are turning to Blockchain.
Tangle is only in the early stages of production and has some flaws. Since it uses a central coordinator node, the technology cannot be considered fully decentralized. This node verifies valid transactions, but Tangle data is not fully self-contained in this regard. The node addition protocol is also less comprehensive than Blockchain, making it less stable.
I hope you find this knowledge useful.
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