IOTA Foundation Fixes Mainnet Issue But Puts A Question Mark On Its Decentralization
- Those running the IRI node need to update to version 1.8.3
- The incident puts the network’s decentralization in question
- IOTA tanks 55% in 2019, everyone is returning to Bitcoin
IOTA Foundation has fixed an issue related to its mainnet, announced the non-profit behind the IOTA network on Dec. 30. The Foundation has asked those running an IRI node to update to version 1.8.3, available on GitHub.
The issue here was that IRI didn’t account for a transaction that was shared between two distinct bundles. What led to a corrupt ledger state was that once the transaction was marked as “counted” on one bundle, it was ignored for the next bundle.
The decentralized ledger for zero-cost transactions for the Internet of Things was reportedly unable to process transactions for about 21 hours due to the issue.
Now that the issue is resolved, transactions on the network are back to processing.
Yesterday, cryptocurrency exchange Huobi that “temporarily suspended” deposit and withdrawals of IOTA due to mainnet upgrade has now resumed its services for the cryptocurrency.
IOTA’s Decentralization or the lack of it in Question
This incident however, has the community questioning the decentralized nature of the IOTA network. Jake Chervinksy, General Counsel at Compound Finance said,
“Is it fair to say IOTAholders are relying solely on the efforts of the IOTA Foundation to fix mainnet? Just wondering if that's Howey can look at this situation.”
— Dan Hedl (@danheld) December 29, 2019
Back in 2017, Nick Johnson, a developer at the Ethereum Foundation said he finds IOTA “deeply alarming.”
— Tuur Demeester (@TuurDemeester) September 28, 2017
At that time Tuur Deemester, Founding Partner Adamant Capital said,
“I'm not sure the IOTA team has the required cryptographic pedigree for long term success.”
IOTA tanks 55% in 2019, everyone is returning to Bitcoin
Instead of using blockchain technology like other cryptocurrencies, IOTA uses Tangle which is a stream of interlinked and individual transactions. The cryptocurrency uses DAG to store its ledger, with scalability as the main motivation.
Currently, the IOTA Foundation is working on Coordicide, the death of the Coordinator, to realize the “dream of a permissionless and scalable distributed ledger technology (DLT).”
Now coming onto the price part, IOTA is currently trading at $0.161, down 97% from its all-time high of $5.54, as per Coincodex. In 2019, to date, it is down by 55%.
This Mati Greenspan, founder of investment firm Quantum Economics says is because,
“People are realizing that many of the altcoins had exaggerated valuations beyond what the projects were worth.”
The market has moved beyond winter, summer, or spring and we're currently in a period of “great consolidation” where everyone is returning to Bitcoin, said Greenspan.