One common line used by Fudsters against IOTA (MIOTA) is that it is not decentralized. This comes from the fact that IOTA uses a central coordinator in protecting the network. The good news is that this could soon be a thing of the past. That’s because the IOTA team is currently researching on different models that can be used in removing the COO. Here is part of a blog series from the IOTA foundation about the removal of the COO.
We are excited to open up the discussion about the next steps for IOTA, and in particular how the Coordinator can safely be removed. We have nicknamed this step “Coordicide”. We would like to start the series by revisiting the early days of the network. This context is helpful for understanding the overall network design, and why we believe the path to Coordicide is the natural next step in the evolution of IOTA.
Going by some of the theories they have presented such as node accountability and the star concept, it is clear that they will find a breakthrough soon. For instance, the node accountability proposal looks quite practical, though it is just one possible option among many. As per the IOTA blog, node accountability entails transaction classification as explained below.
The basic principle of node accountability is to classify transactions as good or bad (typical examples of bad behaviour include double-spending attempts or a very large number of re-attachments). The idea is to create a reputation system, similar to object reputation systems used for peer-to-peer file-sharing. The reputation system would be conceptually similar to page-ranking algorithms, but much simpler and adapted to the needs of the IOTA ecosystem.
Given the recent moves by the IOTA foundation to beef up the team with scientists, mathematicians, and other talents, there is a very high chance that this move by the IOTA (MIOTA) team will bear fruit in the near future.
The implications on the value of IOTA (MIOTA) will be quite huge. First, it will eliminate a major source of FUD against IOTA (MIOTA) and drive up retail FOMO around this crypto. There are lots of investors who hold up from investing in IOTA (MIOTA) out of the fear that it is not decentralized. Once this hurdle is overcome, such investors will troop into IOTA (MIOTA) because its use case is clear. It’s adoption levels speak for it, as a high-value crypto outside of the decentralization issue. Large corporations in the automobile industry would not be partnering with a worthless crypto project, and with technical clarity, investors would have a reason to FOMO in. The same goes for institutional investors, many who have held back from IOTA (MIOTA) for fears revolving around decentralization.
The best part is that this announcement has come at a time when IOTA (MIOTA) is trading on a year-long support level. This could be the catalyst that gives it the impetus to shoot up in value, as investors take up long-term positions. The moment there is a breakthrough, its value will skyrocket, possibly to double digits.