• The founders of IOTA , Dominik Schiener and David Sønstebø, describe that the blockchain cannot solve all the problems of the future, so the IOTA Tangle has been developed.
• Bitcoin and Ethereum are not decentralized despite blockchain technology, because miners have great power in the network.

In a new interview with the Coinmarketcap data analysis platform, Dominik Schiener and David Sønstebø spoke about past mistakes and the lessons they have learned from past developments and experiences for IOTA.

Blockchain is still a prototype with teething problems

IOTA was founded to solve the big problems of blockchain technology. The Bitcoin blockchain can process almost 7 transactions per second and transaction costs are always high, especially in times of high demand. According to Sønstebø, these facts alone indicate that the technology is in its infancy. Scaling solutions are under development, but they are still not ready to use or work without error (freely translated):

But the blockchain itself was what I would call a prototype. This is what you are building a minimum viable product for. It works. It proves the different concepts, but it doesn't really work when you want to scale it.

The technical architecture of the IOTA is carried out using a directed acyclic graph (DAG). IOTA has no scalability limits and there are no transaction fees, which, according to the founder of IOTA , is one of the main reasons why IOTA has been developed in the last 5 years:

This is what IOTA was created to solve. This is why we have gone through this journey in the past five years to develop an entirely new architecture that removes costs, removes scalability, bottlenecks and also improves decentralization.

Schiener also agrees with Sønstebø that the grand vision of highly scalable blockchain technology becoming the new standard in public administration, cities, energy management and many industries is far away. Currently, the possibilities, potentials and limitations of distributed ledger technology are still being explored and the first results are being collected. It remains to be seen whether the blockchain will really establish itself in the world.

Bitcoin and Ethereum are centralized

The Bitcoin and Ethereum networks are both powered by mining, just at that time, the transactions are confirmed and settled. This crucial difference with the entanglement of IOTA leads to a centralization of the two networks. Sønstebø describes that you only have a say in the network if you can provide material resources strong enough to participate in mining:

It is not decentralization. It is a pseudo-quasi-decentralization. In reality, only five or ten large operators control the entire network. It's Bitcoin . It's Ethereum . This is how they work, and they will always work that way. It is the only way they can work.

The IOTA , on the other hand, can easily solve the problem of centralization of mining by the confirmation of transactions a natural process in the tangle, completely free:

You can have scaling, or you can have decentralization, or you can have low cost. And in IOTA , we are able to solve all three. And it's a huge, huge and daring promise.