IOTA Shared Node

Cryptocurrency IOTA was founded in 2015, and the main objective of this cryptocurrency is to become a payment system inside IoT (Internet of things). No complicated blockchain technology is required to transfer data between two light crypto nodes. Therefore a structure called Tangle is used, which connects public crypto nodes to a decentralized peer-to-peer network. The architecture of the network is designed in such a way that the more public nodes exist, the more reliable the system becomes, and the transactions are faster. Each IOTA node constantly exchanges information with neighboring public nodes, reads and writes to Tangle, and has a static IP address. If the IP address of a public node changes, the neighboring free IOTA nodes must update their IP addresses as well.

Cryptocurrency IOTA does not require any mining, and the Tangle algorithm for public node communication has nothing to do with Proof of Work or Proof of Stake. IOTA nodes are linked together in a structure called a directed acyclic graph. No commission is paid for a transaction between IOTA nodes. Instead of paying commission, the nodes IOTA user confirms two other transactions and calculates the signature using the cryptographic algorithm SHA-3. The algorithm chooses which two transactions will be confirmed by the public node. Each time a new public node is chosen randomly. Since the commission for transfers is not paid, IOTA is perfectly suitable for micropayments.

Unlike many other cryptocurrencies, IOTA is not divided into smaller parts. All IOTA units in the amount of 2.8 billion were created simultaneously when creating the network. Tangle algorithm takes into account only those IOTA nodes, where the balance of IOTA wallets is above zero. The transaction speed between IOTA nodes is three minutes on average. It is not bad at all if you take into account that there is no transfer fee in the system.

Unlike many other cryptocurrencies, free IOTA nodes can return any payment. Due to this feature, there is no need to buy new IOTA coins to circulate between a limited number of public nodes. The technical requirements to run IOTA public nodes are minimal, and the public crypto nodes can become a mini computer Raspberry Pi. Any device in the network becomes a free node that only transmits transactions. A transaction spreads through the network between light nodes until the transaction reaches the full public crypto nodes of IOTA. Such a free node checks the transaction, and if it meets all the requirements, writes it to the distributed registry Tangle, which here replaces the blockchain. It is possible to access the public crypto nodes of IOTA through the API, which makes it easier for software developers.

The update of Hornet has increased the number of processed transactions per second by more than 20 times. Thanks to IOTA, new economic models of equipment rental and maintenance have appeared - for example, an electric car can pay for energy automatically by transferring from its wallet to the wallet for refueling. Tangle algorithm will process not only financial information. Every IOTA-compatible device connected to the Internet will become a public crypto node that has its own purse for calculations. Microtransactions will be widely distributed on the Internet and will find applications for tips, payments to members of affiliate programs. Developers are going to implement Flash Channels technology, through which transactions between blockchain nodes provider IOTA will occur instantly.