As the crypto market’s current bull run gain more upward momentum, the IOTA Foundation has posted a video which has propelled the price per MIOTA above $0.40. In the space of ten hours, MIOTA moved from a low below $0.38 to a high above $0.44. Currently trading at just above $0.43, MIOTA’s 14.84% surge was prompted by a video suggesting IOTA is moving close to eliminating its centralized Coordinator.
The video features IOTA co-founder Seguei Popov at IOTA’s ReSum research summit in Barcelona, where Popov has overseen a team of IOTA researchers exchanging ideas on how to kill IOTA’s Coordinator:
“The exact goal of this event was to figure out how to kill this Coordinator. We call it Coordicide for some reason. And I think we did it. Of course, there is a lot of work to do, but… we did it.”
The ‘holy trinity’ of many blockchain projects is achieving a perfectly-balanced implementation of decentralization, scalability, and performance. The directed acyclic graph (DAG) “Tangle” on which IOTA is based offers a near-perfect solution to this problem by allowing transactions to be verified by other adjacent transactions on the network, instead of being verified by miners (as in the case of Proof of Work networks, e.g. Bitcoin) or block producers (as in the case of EOS’s Delegated Proof of Stake mechanism). In theory, this means that DAG-based tokens like IOTA are infinitely scalable, with performance improving as more transactions occur across the Tangle. And by eliminating the need for miners or block producers to verify transactions, there is no need to give out rewards for performing this service, making feeless transactions possible.
However, DAG ledgers like IOTA require a critical mass of transactions to be reached before new transactions can easily find other new transactions to be verified by. This has meant that IOTA has until now relied on a centralized Coordinator, through which all transactions are verified. The existence of this centralized Coordinator has frequently been used against IOTA by its critics, who claim that IOTA is a centralized protocol because of it.
When Coordicide comes, it should fulfil the promise of creating a truly decentralized, feeless, and near-instant distributed digital ledger. IOTA has been linked with many possible implementations of this technology for next-generation Internet of Things (IoT) devices. These possible implementations include teaming up with major car manufacturers such as Volkswagen (VW) and Jaguar Land Rover to allow car owners to automatically earn and spend cryptocurrency with their vehicles. In the future, this could make it possible for car owners to offer automatic short-term leases of driverless vehicles which would be capable of paying for refuelling without human intervention.
But while eliminating the Coordinator has always been a long-term goal for IOTA and those working on the protocol, the new video suggests a solution is in sight. So when can we expect to see the Coordinator’s long-awaited death?
As well as sending the price of MIOTA surging, the new IOTA Foundation video has prompted a lot of discussion over when Popov’s words when will be translated into concrete results. Many supporters have been sharing screenshots of discussions from IOTA’s Discord and other sources that should help add clarity about when to expect further information.
IOTA Foundation software engineer Hans Moog has apparently noted that the video with Popov was recorded in February. Moog ends this comment with the teaser: “…so when he says there’s a lot of work to be done…” And a recap of the IOTA Resum summit posted to Medium shows that the Barcelona event at which Popov was speaking in the video did indeed take place back in February. Many are speculating that the IOTA Foundation wouldn’t have waited until now to release the video unless it was expected to be followed with further details on the past few month’s progress.
— Bigfrog (@Bigfrog333) May 27, 2019
IOTA co-founder David Sønstebø says that: “All info will be available shortly,” adding “I rarely use the word shortly.”
— IOTA News (@iotatokennews) May 27, 2019
Others heavily involved in IOTA have made comments that could dampen expectations, with a quote attributed to IOTA co-founder Navin Ramachandran on the /r/IOTA subreddit stating that: “The coordinator will still be here in 3-6 months.”
The sum of all this seems to be that the Coordinator’s death isn’t imminent, but a detailed plan for Coordicide will be coming soon. The video has pushed MIOTA to its highest price since November 2018. IOTA supporters will be hoping this is just the beginning of a bullish new period for a project which saw some of the most explosive price movement of the last major crypto bull run, rocketing from $0.37 to its all-time high of $5.23 in less than 50 days back in 2017. While such insane price movement is unlikely to be repeated, the jump in price of the past 24 hours show there is still a lot of excitement for IOTA’s potentially game-changing DAG-based Tangle.
Update: On Tuesday, May 28, IOTA has confirmed, that, indeed, it has found the solution to Coordicide.
“Removing the Coordinator from the IOTA network will realize a long sought after goal in the field of DLT: scalability without centralization. The solution itself is inherently modular, meaning that users will have ultimate freedom to tailor the system to their individual needs. Its implementation will be a major milestone in the IOTA Foundation’s goal of creating a truly enterprise-ready DLT,” the IOTA foundation said in a statement.
IOTA has also unveiled a new Coordicide website saying, “with the launch of the Coordicide website we are proud to unveil our blueprint for the Coordinator’s removal — a momentous step towards realizing IOTA’s promise as the first decentralized and scalable DLT.”