IOTA to spend $5 million on introducing Coordicide

IOTA, a permissionless distributed ledger, is going to spend more than five million dollars (USD 5 million) to research and develop Coordicide, a plan to remove the centralized node, which is currently the cornerstone of the whole network.

The main goal of the project is to offer users a transfer network without any fees. However, the way the network is currently structured allows the IOTA Foundation to prioritize transactions to be processed subjectively.

With the introduction of a Coordicide network, the Foundation would not have such authority over transaction processing anymore. While most significant cryptocurrencies use blockchain technology, this network employs a different type of distributed ledger. By using a directed acyclic graph (DAG) ledger, the network allows numerous transactions to exist simultaneously and tangle with each other.

IOTA invests in research

Innovation and research in the field of blockchain technology are becoming more popular. Higher education institutions all over the world have started offering blockchain-focused courses, as this technology enters numerous sectors of business. 

IOTA’s goal to further develop and decentralize the network is proof that there is more to be expected from blockchain ledgers. A Coordicide system is a next step in the improvement plan for the IOTA Foundation. 

Unlike other projects in the field, the system does not rely on third party mining to authenticate transactions, but rather on other users of the network. With the introduction of Coordicide, the project will become more self-sustainable, if enough users are performing transactions. 

The five million dollars investment will employ the scientific expertise of many decentralized ledger specialists and will lay the foundation for further development in the field of DAGs.