Hello all,
I did a review/synopsis of this article and was wondering if you guys could give any feedback.
IOTA v Rail Blocks: Analyzing Top PoS Competitors
The term “FFM” or “fast, feeless, minerless cryptocurrencies,” is used by Ryszkiewicz
to describe proof of stake (PoS) blockchain systems, more specifically the two most prominent companies in this field, IOTA and RaiBlocks.1 The author goes on to describe the inefficiencies associated with typical mining based proof of work (PoW) platforms, like bitcoin, etheruem, and the heated discussion around their potential switch to a PoS algorithm. He also talks about implementing other solutions within existing PoW systems such as Lightning Network, or Flash Channels innovations, which make mining easier/faster. Unfortunately these techniques require a large amount of server infrastructure to operate, which can induce more fees into transactions, which is what these solutions are trying to get around in the first place. After reading the authors analysis of the FFM PoS systems IOTA and Raiblocks these are my findings.
To maintain consensus within the system, IOTA requires initial PoW computation from the wallet holder when trying to transfer funds, the results are then packaged while they await confirmation from the rest of the network. While this entire process apparently only takes a few seconds, they have had problems with network congestion. Raiblocks technology on the other hand, is based solely on the individual nodes in the network confirming transactions, which can be signed/created at anytime. This results in an instant transfer of funds once the new transfer block is created. The system then relies on high value wallets or ‘representatives’ that confirm these transactions as legitimate and handle malicious network ‘spam’ attacks privately so that they don’t bog down the network.
Both IOTA and RaiBlocks networks requires the running of massive nodes to facilitate these instant transactions, which inherently makes the system more centralized, and creates sunk costs for those operating them, which may eventually result in fees if they are unable to recoup the costs of running these nodes. These costs are mainly recouped from the trading fees associated with exchange once you transfer your money in and start utilizing their services. IOTA is a bit more centralized though as Raiblocks is entirely peer to peer confirmed within the network, while IOTA still has central authorities with added permissions managing transactions on the network. There is still a lot more to be extrapolated from the underlying technology of both competing technologies, but these are some of the main differences between them.
Thanks for your time,
Ted
Read Initial Article Here: https://hackernoon.com/iota-vs-raiblocks-413679bb4c3e