Did you know that IOTA is the only DLT in the whole crypto space that is not based on establishing a total order of events?

It is using a completely new form of ledger state that uses similar principles as what @stephen_wolfram postulates to be the underlying laws of physics ...
... that govern the universe - a multiway evolution graph that tracks all possible versions of the ledger state at the same time.

One of the biggest innovations of Satoshi Nakamoto was the "tripple entry accounting system". IOTA extends this "tripple entry accounting system" ...
... by another dimension which maps the outputs to a DAG of conflicting branches (a hypergraph) that allow us to efficiently identify spends of conflicting and therefore causally invalid versions of the ledger state.

This allows us to get rid of the total order requirement ...
... of DLT's and reduce the block size to 1 and once you go from small blocks to blocks of the size of 1, something magical happens.

It's like going from newtonian physics to quantum physics.

A global perception of time disappears, the problem that you can not send ...
... confirmations as fast as possible disappears (the whole block size debate), miner extractable value (MEV) disappears and the need for an absolute consensus on the weight of the gosipped messages disappears.

The last point is most probably the most important one because ...
... it will be this fact that will allows us to integrate things like "real world trust" directly into the base layer.

In fact, the whole DLT revolution started with going from "We need absolute consensus on the identities of the validators." to "We need absolute consensus ...
on the weight of the gossiped messages (blocks)."

IOTA now increases this level of freedom another time to "We need apprixomate consensus on the weight of the gossipped messages."

It is a really small change but it has huge implications.

I believe that there is just a ...
... single sweet spot in the whole crypto space that allows this additional level of freedom and I believe that there will ultimately not be a single design decision in the whole IOTA protocol that will in any way be questionable.

The goal of IOTA is to create the digital ...
... trust layer for generations to come and while I know that this is a big goal, I am very confident that we are very very close to reach that goal of creating the best DLT humans could possibly ever build.

I am so fucking excited for the next weeks and months as we are ...
... finally going to be able to discuss possible optimizations and put all of the pieces together!

Btw.: We should strive to establish standardized test for different protocols that test different scenarios and how the different DLT's perform (message overhead, time to ...
... finality, robustness against DDOS attacks an so on ...)

Humanity should be able to make an informed decision when deciding for the base layer technology that is supposed to power its decentralized future.

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More from @hus_qy

16 May
Since we discussed the potential of using L1 for defi - here is a fun fact:

To fully support L1 DeFi you need atomic composability. To achieve atomic composability you need "blocks" of transactions where either all succeed or all fail.

So instead of sending just a single ...
... transaction in every message we have to allow blocks of them to be sent.

The larger these blocks get, the more likely it is that they contain conflicting information and the more "chainy" the tangle would become.

If you would set the block size to be really large and ...
... let the blocks be filled by i.e. miners then you would have a consensus mechanism that is equivalent to ETH's GHOST consensus.

IOTA's datastructure therefore represents a complete generalization of Nakamoto Consensus and you can go from a Tangle to a BlockDAG to a ...
Read 4 tweets
15 May
@lightdefi @c4chaos IOTA's unique ledger state is extremely powerful and you can indeed build smart contracts on L1 that are completely immune to MEV and also feeless.

To not jeopardize the performance of the base layer, we are currently not planning to support "scriptable" smart contracts on L1.
@lightdefi @c4chaos Scriptable smart contracts live on L2 as the execution of these smart contracts is usually not in the "common interest" of every network participant.

DeFi however can be considered to be in the "common interest" of everybody and these smart contracts are also usually very cheap.
@lightdefi @c4chaos So it is very likely that we will see feeless non-MEV'able DeFi on L1 at some point.

I have implemented an AMM style liquidity pool already as an experiment but I think it might make sense to wait a little bit to see what kind of Liquidity Pools are superior before you add ...
Read 4 tweets
20 Apr
@JorgeStolfi @iotafi @pobserver2 @WealthSeeker28 @Mat_Yarger IOTA is not your typical crypto project where you take some well established principles (i.e. blockchain), extend them with a unique selling point and then do an ICO collecting hundreds of millions of dollars that you use to deliver your ideas which by that point are ...
@JorgeStolfi @iotafi @pobserver2 @WealthSeeker28 @Mat_Yarger ... essentially "complete" already.

IOTA started as a research project that tried to go a completely different route than everybody else trying to fix the only remaining issues of Nakamoto Consensus. When it did its ICO it collected 500k USD which were used to pay for the ...
@JorgeStolfi @iotafi @pobserver2 @WealthSeeker28 @Mat_Yarger ... development of the first version.

There was no premine for the founders or the project. The community decided to donate 5% of all the tokens that they bought (25k USD), to establish the IOTA Foundation to further advance and research the technology. Completely ...
Read 10 tweets
19 Apr
@JorgeStolfi @pobserver2 @WealthSeeker28 @Mat_Yarger You can criticize the early IOTA for:

- assuming that resource constrained IoT devices would provide enough PoW security (hash power)
- using a slow and gameable random walk to "find" the heaviest branch
- using ternary logic and alot of other things

but I strongly disagree ...
@JorgeStolfi @pobserver2 @WealthSeeker28 @Mat_Yarger ... with the statement that it started with a totally broken idea. The idea to translate the longest chain wins consensus of Nakamoto into a heaviest branch wins consensus in a DAG is absolutely brilliant - and imho even necessary if you want to deliver on the original vision ...
@JorgeStolfi @pobserver2 @WealthSeeker28 @Mat_Yarger ... of Satoshi to create a completely decentralized network that can be used as a medium of exchange (a real currency).

Nakamoto consensus is the most secure and robust consensus mechanism that we know and it would in theory work well with millions of nodes and millions of ...
Read 11 tweets
28 Mar
@lKuzon It is true that IOTA nodes can be configured to prune old data that is no longer needed but this doesn't make the system less secure.

In fact Bitcoin has exactly the same option which is called "pruning mode" and which was introduced as part of Bitcoin Core 0.11 in 2014.
@lKuzon The reason why Bitcoin, Ethereum, IOTA and pretty much any major cryptocurrency that exists has such a feature in their node software, is due to the fact that it does not impact the security and nodes do not even access this old data anymore as part of their consensus mechanism.
@lKuzon It is true that IOTA will produce more data than a Bitcoin node so there will most probably be more people having this pruning mode enabled and less people that will maintain a full history of everything that ever happened.

Roman argues that this will make it harder to find ...
Read 7 tweets
26 Mar
@ThroneOfCrypto @__Javs_ @TheADAApe That's totally fine. I think Cardano serves its purpose very well but it wouldn't perform very well in the scenario I just described.

The BFT-style aspect of Ouroboros would already prevent a lot the required properties to hold (i.e. dynamic availability).
@ThroneOfCrypto @__Javs_ @TheADAApe After re-reading your comment, I think I misunderstood you.

You didn't mean to simply remove fees from the game all together but to allow merchants to i.e. cover the cost for their clients.

Of course this can be done with delegated fees and it is a powerful concept to lower ...
@ThroneOfCrypto @__Javs_ @TheADAApe ... the entry barrier for new users and boost adoption (especially if your gains have enough margin to cover these costs).

Well ... In that case just read my comment as a nice summary of IOTAs vision 😅
Read 4 tweets

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