According to the latest report, a research paper has been recently published by the IOTA Foundation. The paper contains a new algorithm that takes fundamentals from the Proof-of-Stake and Proof-of-Work (PoW) algorithms for enhancing the ability of the network in order to fight against congestion and spam attacks.
The research paper titled, “Achieving Fairness in the Tangle through an Adaptive Rate Control Algorithm” is authored by Wolfgang Welz, Luigi Vigneri, Alon Gal and Vassil Dimitrov mainly proposed three changes to the algorithm of the network :
1. Every transaction will require a PC to be expending resources on the puzzle of (PoW).
2. The transactions that are sent over a specified time period; the difficulty level of the puzzle will increases.
3. In order to decrease the difficulty level of the puzzle, senders will be able to stake IOTA as collateral.
The critical challenge for IOTA is to build a system with resource-constrained IoT devices. While in (PoW) specialized hardware (ASICs) are developed specifically for mining of cryptocurrency. Such devices are numerous times efficient than the hardware of ordinary computers.
This algorithm offers significant advantages. It will ensure that even when somebody has unlimited computing power, they will not be able to overpower the network due to the imposed limitations by collateral. This will also encourage the users to have only one identity with more substantial collateral, rather than having several identities with a smaller amount of collateral, hence, mitigating the risks of attacks of spam. In addition, as IOTA is tied up as collateral for sending transactions, this will likely take the coins out of circulation, thereby, increasing its price.