How does IOTA work?

How does IOTA work?

Hello world it’s Siraj and block chains are so
2017-2018 is gonna be the year of block DAGs
directed acyclic
Graphs you might be thinking. What did you just say and that’s okay because I’m gonna explain what I just said
This video is about a crypto system called iota
Okay, so it’s called iota and it uses a distributed ledger similar to bitcoins blockchain
Except it solves a lot of the issues or it aims to solve a lot of its issues
And it’s getting really popular, and it’s about number seven or number eight on the coin market cap website
It’s getting really popular, and I’ve gotten a lot of requests for this video
so I’m gonna do a video on this I’ve been studying it all day and yesterday, so
And I’m and I’m pretty excited about what I’ve what I’ve studied so far
So I’m gonna share with you what I’ve learned about this system today. Okay, so before we go into why iota is awesome
I want to start off with the problem with block chains because block chains are awesome
However, they’ve got their problems 99 of them, but no not 99 problems. Just some problems, okay
I just wanted to slip that in there okay, so here we go with the problems
the first problem with block chains are
Scalability issues right there are endless debates on Twitter on slack on Bitcoin forums on scalability
And there’s a million-in-one solutions to scalability right so bitcoins blockchain
Takes about 10 minutes to confirm a transaction
That’s a long time right 10 minutes to confirm a transaction is a very long time for a system
That’s meant for micro payments right micro payments for machines the machine to machine
Transfer we want machines to be transferring millions of transactions per second ideally just giant mesh networks a machine just
Transmitting value faster than any human could but for 10 minutes. That’s way too long right and that’s what it’s become there are currently
200,000 unconfirmed transactions on the Bitcoin blockchain so if we open this list this real-time list of transactions, okay?
This is real time. We’ll see that there are about 100 83,000 unconfirmed transactions, and it is flowing in right now. Just like that
That’s a lot of unconfirmed transaction and at ten minutes per transaction. That’s just way too long
Okay, so that’s a lot of unconfirmed transactions because it’s taking so long to confirm them and this is annoying right
Why would you want to wait or pay a higher fee for a faster transaction validation or deal with transaction uncertainty, let’s say
you’re a multinational corporation like IBM, or you know Chase Bank, and you want to use blockchain technology to sync up your
Different branches across the world you know use its ledger to sync up the data and in a in a permissionless trustless way
But if you’re having to wait ten minutes per transaction
That’s way too long so check this out visa has two thousand transactions per second visa is the network
Globally it is the network for transmitting value currently
Bitcoin is nothing compared to Visa okay
Look at that five to seven transactions a second that is nothing we weigh more than that so in
Comparison PayPal is way more so how are we going to get up to that visa level you know what I’m saying
How do we get up to that visa level and there’s been so many different?
Suggestions, there’s Segway, there’s a Lightning Network
There’s all these solutions, so I’m gonna go into those a bit, but that’s the first issue with blockchains
Scalability, it’s hard to scale a blockchain right you’ve got massive amounts of computing power
You’ve got the speed of transactions decreases as a network increases in size
And you don’t want to store data on the blockchain right?
There’s this
There’s this thing called blockchain bloat
Where you don’t want to store data directly on a blockchain you want to have a pointer to data?
That’s living somewhere like in a distributed hash table right so
Scalability is one there’s number two are fees right so the mean transaction fee that is the the average
Transaction fee for a transaction and the Bitcoin network is a dollar that might not seem like a lot of money
But that’s a lot of money for a network meant for micro payments right that’s that’s the whole point visa has that 2%
What is it two percent charge for for each transaction the coin was all about okay?
And we don’t need that anymore right we have we have felis transactions, or there’s a very minimal fee well now
It’s a dollar so anything under that is
Worthless right because the fee is going to be greater than the transaction
So micro payments under $1 are virtually useless or impossible now and this can be more than the transaction amount itself right so
solutions include increasing the block size using lightning network central servers for off chain
transactions like using coinbase for example side chains tree chains
There’s a lot of proposals
And there’s a lot of ways that the core
Developers and just the the Bitcoin community is doing to fix that I’m not saying that they are not trying to fix it they are
It’s still it’s still
It’s not fixed right that there are still the fee still exists so if we look at the fee over time
It’s just going straight up. It’s just exponentially over time for transmitting even 0.01 BTC. Which is what this graph is
There’s a lot of computing power required to maintain the Bitcoin blockchain as well as you probably know and
Mining has become somewhat centralized by these giant mining pools right in China mostly
But that’s that’s a lot like just I take a look at this chart right here of the distribution of Bitcoin mining power
Right if you look at gee hash and BTC guild together. They make up
55% of the network two pools make up the majority of the network’s mining power now that is
centralization okay, that is a lot of centralization for supposedly decentralized network and
Transaction speed declines as the network increases in size as more transactions compete for the limited block spaces
So it’s gonna take more and more computing power to mine the same amount of Bitcoin you got to buy these
Asics if you want to be a miner you got to put the money in okay you got to buy some giant a
Six ideally if you want to make some profit, and then you know meter your electricity costs etc
Let me just look at this. This is the hash rate
You know that the cost it takes to mine a block just going straight up
Which means you need way more computing power to mine the same amount of Bitcoin that you would?
Okay and lastly one more problem. They’re vulnerable to quantum attacks right so
Bitcoin and other proof of work based block chains are susceptible to
Being broken by a powerful quantum computer, so here’s why the proof-of-work algorithm, and I’ve talked about this in previous videos
But the proof-of-work algorithm is trying to solve random mathematical problems right it takes a certain amount of time to solve these problems
So for a minor to generate a suitable hash to generate a block they’ve got to check around 2 to the 68th
Nonces that means numbers only used once to find that suitable hash
So a quantum computer would need the square root of n operations to solve a problem
That would normally need n operations on a classical computer
That’s let’s this is an order of a magnet or of an order of magnitude difference so a quantum computer
Would need if we calculated it out, which I did, right?
Here is a quantum computer would be 17 billion times more efficient in
Bitcoin mining than the classical computer right so right so the network requires lots of computing power to
maintain its security
And if a bad actor could gain control of more than 51% of nodes that means they have more than
51% of computing power then they would be able to double spend that means change a transaction history and spend money that they don’t actually
Have and that would break the entire network and everything is based off of classical computing right the laws of classical computers
However quantum computers could do this 17 billion times faster so with just one very powerful
Quantum computer an attacker could break the entire network, and this is very dangerous
And we don’t have a quantum computer like that right now, and it’s all theoretical
But there are advances being made in this space
And it’s it’s gonna happen so we need some sort of quantum attack resistance mechanism
And I’ve got this little
Infographic here on how a quantum computer works, but the most basic li5
Explanation I can give right now is that classical computer only computes ones and zeros so there are binary
Operators. Where as a quantum computer uses instead of a bit a qubit which can be both a 1 a 0 and a 1 and
0 at the same time, so it’s a superposition of two different bits and this allows for
The types of computation that would not be possible on a classical computer
I have to have a great video on this and a part of my math of intelligence series
It’s called quantum computation so check that I just search Siraj quantum computation. Let’s keep going here
Okay, so those are all the problems with the blockchain
So let’s talk about why iota as a crypto system is
Different from a blockchain so the first big difference is the structure so like I said blockchain tour so 2017 iota uses
What’s called a block dag okay a directed acyclic graph I?
Just want to talk about the directed acyclic graph for a second, okay, so
DAGs are not new a dag is just a hierarchy of nodes that are connected to each other where no node is a
Descendant of itself that means there are no cycles
that’s the word a
Cyclic there are no cycles right so it’s just a hierarchy of nodes that are connected to each other in one direction
So there are a million different ways that you could?
Structure a dag, but that’s the basic idea no cycles in this graph. You could think of a file system as a dag right because
It’s just a hierarchy of nodes right folder within a folder within a folder get the the protocol that github uses. That’s a DAC
ipfs is
Ipfs the interplanetary file system that’s a dag in fact
You can even think of a blockchain as a dag right because a blockchain doesn’t have cycles
But it’s a very specific type of deck in that. It’s a singly linked list
It’s a glorified singly linked list that is a that is
secured by the proof-of-work algorithm a
Dag is more general like so here’s here’s an image right here, so
Block chains are just blocks that are pointing to each other in one direction and tangle
Which is what they call which is what Iota calls, its. It’s another word for its tag
I’m just gonna call it that guys I know of you. I know the iota guys are watching this right now
Let’s just call it dag
Please let’s not add more terminologies to this just for adoption so block chains are sequential chains where blocks are added in regular intervals
But I Oda’s data structure the dag is able to achieve high transaction throughput by parallel
parallelizing validation no transaction fees occurs
Occur for any transaction as it grows more participants make transactions
And the overall system becomes more secure and faster with confirmation times
transaction finality going down
What that means is as more nodes are added to the network the network’s transactions actually?
Get approved faster, and that’s in direct contrast to the blockchain the more nodes
There are the slower the transactions are approved right and the longer it takes for a transaction to be approved
Whereas in the block tag that iota uses the more nodes?
There are the faster the transactions are approved which is a much more scalable architecture, and you might be wondering
Why is this but I’m going to that in a second, okay, so it’s still a distributed database
It’s still a peer-to-peer network it still relies on consensus and a validation mechanism, so those things are all the same
It’s just a structure that is different and the type of consensus and validation mechanism
that’s different – right and it scales like I said it scales as
Blockchain scale the usability goes down as I Oda’s dag scales the usability goes up
So here’s the big difference here’s big difference number two there are two big differences right so the first one is a
Structure the second one is consensus, so there are no minors
So people who want to be minors too bad. You can’t be minors. That’s okay. This is a good thing for the network
Here’s why?
So in so blotching consensus is achieved by requiring multiple
Parties to race against each other in an attempt to add the next block to the blockchain and get the block reward
right so miners are competing to
mine the next block the fastest using their computing power and
Whoever is first to do it gets to mine it and they get the reward but because of this
Consensus is decoupled from transaction generation you have this whole separate group of nodes in the Bitcoin network that are dedicated to
mining right and
then all the
Participants in the network that are not miners all they do is just generate transactions right I want to pay for this
I want to receive this I want to pay for this
I want to receive this and because it’s decoupled that leads to further
centralization right because the these mining pools can occur but in iota there is no decoupling the all the nodes are
Miners in a way or they’re not miners. Here’s how it works so an iota every participant in the network making a transaction
Also actively participates in the consensus, here’s how?
Every time you make a transaction you reference two transactions directly and and in a way other
Transactions in the sub dag indirectly just by referencing two
So there are no blocks in the classical sense instead a single transaction references to past transactions
right, so here’s here’s a here’s the graph it bundles all transactions in a directed acyclic graph, it’s
self-regulating consensus, no longer decoupled to a set of minors
And it’s very scalable with a low overhead proof of work to prevent spam so check this out the green blocks are transactions in which
Consensus was achieved the red blocks are transactions where we are still uncertain on their full acceptance and the gray blocks are
unconfirmed transactions
Ideally we want all of these transactions to be green right so from right to left or left to right depending on how this works
eventually all the nodes will be verified if the nodes pointing to it verify that it is indeed a valid transaction and
There are no transaction fees because there are no miners
You when you make a transaction you have to approve to other transactions
And then you have to perform the proof-of-work
algorithm so in a way
You get paid by not having to pay a fee right so because you’re computing this proof of work, which is for civil resistance, right?
because you’re computing that proof of work you get to make a transaction without there being a fee and
That is your reward so there are no transaction fees which is awesome
so instead of a smaller subset of the network
being responsible for the overall consensus ie the miners the entire network of active participants ie the devices making the
Transactions are directly involved in the approval of those transactions and so
consensus in iota is no longer decoupled from the transaction making process
It’s an intrinsic part of it
And that’s what lets it scale without any transaction fees oh and one more thing like I said before it’s quantum
It’s quantum resistant
It’s not success susceptible to quantum attacks
And why is this well it uses an how?
Them call the winter knits one time signature I can make an entire video on how winter knits one time signatures work
I’m not gonna do that because it would be too long, but check out the link right here in this Jupiter notebook
Which is in the github by the way, okay? So here’s a little picture of it alright, okay, so here
Okay, so you might be confused by this process of making a transaction. Let me clarify it, so it’s a three-step process
It’s a three-step process so the first step like let’s say I want to pay you know. I’m a machine
I want to pay this other machine or even I’m a human. You know I want to pay this other human
Here’s how it works
the first step is to sign the
Transaction input with your private keys what that means is you’ve got a unique set of private keys that identify you as a unique individual
Node in the network when you sign a transaction that
You are hashing you’re creating the hash of that transaction using your private unique unique 25 character key
Which means a transaction will be both unique and linked to you so you sign it with your private key?
Then step 2 is tip selection right so tips are the what Iota calls these unconformity
The Monte it uses the Markov chain Monte Carlo algorithm to randomly select two tips these are unconfirmed
transactions which will be referenced by your
transaction and in the code these are called the brand transaction and the trunk transaction right so once you’ve signed your
Transaction you then point to two unconfirmed transactions that you’re gonna have to approve
Before your transaction is generated and validated, so that’s that’s what you’re paying for this and step
Three is to perform the proof-of-work algorithm in order to have your transaction accepted by the network
You need to do some proof of work similar to Hashcash similar to Bitcoin right and this is for civil resistance, right?
It’s all about the computing power right you don’t want any of
The nodes in the network that gain control of the network by having the majority of the computing power
and that’s what proof-of-work prevents because everyone has to compute this you know random mathematical problem a
Node would have to have more computing power than the rest of the an attacker would have to have more computing power and then
half the network in order to double spend so
Proof of work as for double spending tip selection is computed using the Markov chain Carlo process
I also have a video on how this works. It’s a part of my reinforcement learning series
I could go into a whole video on that
But it’s called Monte Carlo prediction. Just google that but in short. This is a
probabilistic algorithm that
samples randomly using distributions
So it’s some so Markov chain Monte Carlo methods sample from a set of nodes
randomly using a distribution function, okay, so
Once you’ve competed completed these three three steps your transaction will be
broadcast to the network and someone else will come along choose your transaction in the tip selection process and
Validate it and just like that your transaction is confirmed
So that’s why if the network gets faster
Transactions get faster as it network scales because the more people there are in the network then the faster
your transaction will be validated because there are more people available to
Confirm your transaction right so that’s why it scales as there are more people okay
So I do want to say one thing so there is this concept of the coordinator right now in iota and so the coordinator is
Is run by the iota foundation the people who?
You know made iota and the coordinator checkpoints valid transactions, which are then validated by the entire network
It cannot go rogue as this coordinator is being checked and validated by the entire network
But what this means is first of all it’s very hard to
Bootstrap a blockchain right because you need it’s you need a certain amount of nodes there
For the computing power to be greater than what an attacker would have right in order to
Gain control the network because bitcoin is so big as an as a system
The amount of computing power an attack would need is way too big right
But when you’re starting a blockchain that relies on the proof of work mechanism
you got to have some kind of system in place to prevent a
bad actor from taking over some sort of civil resistance so the way the i/o the iota Foundation has
Sought to prevent. This is by creating this coordinator. That is run by that so it’s centralized yes
It’s a centralized node that validates transactions temporarily
they’ve been clear about this since the beginning which I like and
Yeah, it’s centralized. That’s a bad thing, but it’s it’s a temporary thing
And I think that I mean their goals and their their aims and their white paper its
It all seems to be pointing in a decentralized direction, but it’s a temporary mechanism to validate transactions at the start
But eventually they’re not going to need it or want it, and it’s gonna go away, so I just want to mention that
Okay, so use cases right so first is data integrity right so
There’s this mechanism to send messages secure messages between different nodes in the iota Network which allows for
Nodes to communicate data right and because there is this distributed ledger that there is consensus on that is permissionless and trustless
you can you can ensure that the data that is being passed between these nodes is is valid and
Data integrity is super useful for any kind of Hospital Records
Or you know any kind of secure records that we need to you know government law legal
You know anything that needs a lot of security this would be great in a trustless permissionless systems supply chains, right?
Importers exporters shipping liners logistic companies right they’re all over the world
They’re global, and they need to sync up on data
And you know what the what the status is of you know delivery
And what the status is of this and this and this and this and that’s a perfect use case for distributed Ledger’s like iota
Right, and I mean this this system was meant for the Internet of Things right so and when it comes to the Internet of Things
We are we need ways to share a bandwidth computing power resources
you know data all sorts of these things and
That is what this would be good at or any kind of grid as well solar grid
micro grid services electrical grid just anyways to share
Resources that doesn’t need a human in the loop just automatic systems that are trustless permissionless that coordinate
Scarce resources amongst groups of people this would be a great use case right so it’s key features are infinite scalability
No Fee
microtransactions and quantum resistance, three key features that
Would be awesome to have so I mean the network already has a hundred million in transactions that have occurred without fees
Yes, it’s using a coordinator right now. Eventually it doesn’t need to or they don’t want it to be there and I
Think it’s pretty cool
I mean the promise of No Fee
transactions and a network that scales really well and gets better in
Terms of the speed of transactions over time that is a that is a promise that I like okay
And I want that to happen we should want that to happen
Iota is a proof of concept
I mean everything in this space is a proof of concept Bitcoin is even a proof of concept
What what I mean by that is it is not production ready yet nor is Bitcoin even
But I like where this is going I mean these guys seem to have
Know their stuff like they worked on next which was this this first asset transferring
that uses block chains in 2010-2011, so they’ve been in the space for a while and
You know they’re they’re pre mine was modest
I think something like 500k and all the coins are
Are generated all of them that can be created have been created so it’s I think it’s a cool system
And I want to see more of it
I want to see more development of it more interest more excitement because yeah we need no fee
we need no fee distributed ledger services right that’s how we’re going to really get this Internet of Things of things that are communicating and
Transmitting value at millions of transactions per second faster than Visa, or is a magnitude faster than Visa screw Visa
We just go million times a second, okay
that’s what we want to be and if we can just bypass all of these issues that are coming up as a
Bitcoin blockchain scales and use something like iota that would be awesome, so I think that yes
There’s still some problems, and they have a lot of promises, but if they can come through with them
And I think that they can that would be awesome for everybody, okay, so
Let’s let’s look at the code for a bit so they’ve got this GUI client, which is really cool
If you want to just the easiest way to get started this would be it it’s built in JavaScript
You can use NPM to install it. It’s base of the electron wallet and
Instructions are here in this github repository one more thing is the client library in Python
So the base library is in Java, but they’ve got client libraries and Python and JavaScript
And in C. I think C as well, but it’s all on their github right here at iota ledger
Which you can look at right here Java. They’ve got the command line app. They’ve got an Android wallet
Yeah, they’ve got they’ve got a lot of repositories here to play with in some different languages
But what I’m gonna. Do is I’m gonna just download this and just run. It just just cause so let me download that and
I’m going to open in terminal. Let’s see
Let me go right into that folder
Okay, so pip install
Okay there we go
right sudo
pip3 install Toyota
All right, so I’ve got I owe to up and running
I have a full node running on my computer and using once I have this node running
I’ve downloaded the Java client, and then I can use any of the
Python or the JavaScript
CLI libraries to then you know integrate this into a web app or a mobile app or whatever kind of app I want
But it’s a pretty lightweight
Client, and it’s easy to integrate into a web app or mobile app so you can use it for you know having an online wallet
Or whatever payment system or or any kind of?
System you want to create the last thing is how to buy iota so I found this great tutorial on
BitFenix calm which is this website?
This is it’s an online exchange on how you can buy iota with Bitcoin so it’s a five step process
But first first step is to make sure your funds are on the exchange wallet
so they have three dedicated wallets that you could use and
You can instantly move your funds from one wallet to another on the wallets page which is right here
And so you can go to the trading page and choose the pair you want to trade
And then there’s an order form and the exchange tab you could click exchange buy
and then the order is going to appear if you you’ve got to have Bitcoin in order to
Buy I owe to coin, and if you want to buy Bitcoin
Then I would suggest using coin base as a the most reliable way to buy them it’ll require you can do this from
Virtually any country I think at this point
but you link up your credit card or debit card or bank account by Bitcoin and then
transfer that Bitcoin to a wallet and then from that wallet by Iota on BitFenix or
There’s a couple of exchanges actually, but I think bit finnex
Is is the one to do please subscribe for more programming videos and for now I think I’m gonna go buy some iota so
Thanks for watching


  1. Bitcoin is over 20 dollars in fees at the moment, if you want your transaction to get accepted fast. If you are fair with waiting up to two hours, you are fine with 10 dollars, if you go below 4 your transaction might not get confirmed at all

  2. Hi Siraj

    From this video, IOTA is super cool except temporary co-ordinator however there are few comments at the end of blog( which are worrying!

    As per this link from Streamer advisor the IOTA dev. is considered to be not genuine. Any view on this from your side will be great to have.


  3. I would never trust a crypt hash function which hasn't been put to thorough test. IOTA seems to be using a "crypt" hash function of this kind, and claims it's quantum computing proof.

  4. I don't understand the part about the "quantum attack". If quantum computers can try nonces faster, than miners will all use them, no? why do we need a mechanism to defend against that? did we need a mechanism to defend against gpus because they mine faster than cpus? if quantum computers become better at mining, so be it, we will just adjust difficulty.

  5. Awesome videos man, very informative. I appreciate you taking the time to post these. I do have one question. What made you go full chipmunk at 9:35.?

  6. First Flaw is more people on the network does not make it faster. You get to a point of saturation and whoever wrote that white paper is an idiot or simply wanted to hook the idiots on this crap.

    Second flaw is your coordinator. More transactions means more issues since everything checking coordinator, it also means that if you DDOS the coordinator, the entire network goes down.

    Third flaw stating there are no fees is also BS. Think about it for a moment. Who's going to stay online for doing the transaction? If the app is running in the background then people are paying electricity to accommodate the app. What was that, IOTA only runs the program when someone doing the transaction? Oh great, then I better make sure I do my transaction at the same time as someone else doing their transaction otherwise it won't complete or I'll wait.

    Fourth flaw with the program, they don't cover the issue of people logging in and out. How does the database repairs this issue? Do they run through the coordinator? Oh there you go, centralized system.

    I mean, is everyone that stupid not to see the crap that is IOTA.

  7. The "coordinator" should have been replaced by miners who produce a topological ordering of the DAG — rewarding them with coins, of course. There is no way to get rid of some coordination to produce "checkpoints" — because the scale of the DAG will be more than small machines can navigate. I.e. it doesn't scale.

  8. How much room do you think there is in the market? So many alt coins (and the tech behind them) are trying to be the solution to BTC's slow transactions. But do we think only 1 will be chosen? If that happens, all the other coins/tech will likely be shuttered, no?

    I'm into several alts, but there's so many people rooting for each one, and so many of the coins advertise similar abilities. I'm just wondering if everyone expects there to be , say, 10 companies that still exist in 2019, or only 5, or 2, or 30?

  9. Prob the most in-depth analysis article about IOTA
    I hope you appreciate the quality: you can’t find this exhaustivity anywhere else.
    Please share this article if you like it. 😉

  10. Siraj, you said you studied about IOTA just yesterday and how come you came up with such numbers?
    Can you please tell us your approach to how to use Google effectively? Especially when we are specific about finding something about ML, AI etc..

  11. is a complete SCAM and this is an Astro Turfing campaign so they can pump it and dump it on IDIOTS that buy this scam shitcoin.

  12. countdown until iota is hacked, iota has a big 51% attack issue. You just need 51% of the branch! not the whole network!

  13. gcn coin thank me in 2020 when u be milionare !!!

  14. crypto-currency is stupid and bad for the world. how much energy is wasted mining tokens. Blockchain is useful, but as this video explains, it's horrible from a technology perspective. It's a huge bubble.

  15. Siraj, I'm finding it very difficult to buy IOTA right now because I cannot register any of coin platforms have disabled account registrations. How do you buy IOTA right now?

  16. Doing a vid on how technology works is fine, but actively suggesting to buy it is pretty fishy. Especially as IOTA is pretty controversial at the moment and people report serious problems getting their money back.

  17. You're a fucking trooper Siraj. I have to be honest. Thought you were a bit much when I first saw your videos, but you are outputting so much good content these days, and I must commend you for that. I love the new informal style by the way. YouTube is too polished.

  18. Everyone this guy is a piece of shit. Anyone who says a network entirely controlled by one company is permission less and trust less is full of shit.

  19. How does someone approve a transaction? You said that the speed increases more people sign up. And that's because they take part in verification of transactions. How does this work, how do I or my account verify someones else's transaction?

  20. Most thorough explanation I came across so far. Thanks for putting up the effort and great work. Is there any way to access the notes you go through in the video? Do you upload them anywhere? It can be a great reference.

  21. I'm not the most technical person but, like many others, I'm learning a lot right now. My questions is this. Iota claims to be quantum resistant. If this is true why do they need the coordinator?

  22. why is it sold in bitcoins? and not sold in any currency? are they collecting bitcoins with this new entrant? saving for a big fortune?

  23. Dear All – after reading a few of the comments I stopped not likely all the negatively. as the technology innovates we need to adapt new ways of thinking, communicating and being with each other. Let's start NOW!

  24. Could anyone tell me, how much computing power is required to validate each transaction? As each person needs to validate 2 transactions, would this require each person using this ICO to have a high level of computational power?

  25. If there are no miners then it is premined..which means it is centralized…
    Great technology but we need mining…

  26. Siraj!!!! Please accept my personal compliment. You are the guy who explain the Blockchain with the clearest concept on Youtube.

  27. If transactions on IOTA Tangle are free how will they make money?? Additionally, if there are 2 QUADRILLION tokens (and there are, that's why they trade as MIOTA "millions") how much can a token be worth? Further, what utility does their coin have if not to pay for transactions on their FREE Tangle Network???? These are valid questions I cannot seem to find answers to???

  28. Love your videos man thanks! Hackers stole 4 in IOTA Tokens just a day go :(. I love the model of iota esp. for supply chains.

  29. Hey Siraj! Great great video! If you have the time can you do a comparison between IOTA and Raiblocks? Or just a video on Raiblocks so that we can see the differences?

  30. Hi Siraj. Thanks for the great video. Learnt some new things I didn't know about IOTA. Curious what all software tools did you use to create this nice video and which OS? Many thanks.

  31. Nice video. One small factual error. Visa can process 24,000 TPS according to testing done by IBM in 2010.

  32. Interesting…!!!. Whats your opinion on INT ( Internet Node Token ) which claims to be better than IOTA. I have been looking into how their business model ( White Paper ) works. So far it's the IOTA of China but I believe it will soon go worldwide.I like your videos. Very informative..!!!.

  33. Scenario (This may be a dumb question/scenario, bare with me): There are 3 nodes in the network, one node makes a transaction but has to solve two transactions for it to have "proof of work" so that its transaction can be approved. Let's say there isn't any transaction at the moment except that one transaction. What will happen?

    Because to me, it sounds like there need to be ongoing transactions to approve transactions.

  34. @Siraj Raval Hi Siraj. Nice video and clear explanation about IOTA. Btw, where can I download your IPython notebook? thx

  35. Iota is worst crypto. Mine was hacked. I lost all Iota. Iota foundation told me to shutup when I reported hack. Stay Away!!

  36. The development of the blockchain really well thought out. Many investors have already acquired tokens of the company.This platform is designed to provide high-quality services for ICO.They worked hard on the development of mobile and Internet applications in any programming language. The best way for this condition to earn tokens. , and

  37. Could you do a video on how to create a DAG cryptocurrency? Not sure if that's on your level, i'm trying to figure it out on my own, but apparently there is a learning curve:)

  38. All that is cool . But when i think back and forward… I would say that this currency is centralized .. How come you can verify ACID process ( account, balance, previous transaction etc.. ) with bigger scalability but no reference to check it with ? there must be some back door…. otherwise it make no sense for me. Can you pls explain ?

    Thank you million times !


  39. Great video! I wasn't sure to invest on IOTA but you made it clear for me. It's an awesome technology. The World Trade Organization mention IOTA as one of the coins could Revolutionize International Business. Keep up the great Job!!

  40. Can someone help me with running the code for this video? How do i get to the text siraj is reading from? this link

  41. I am fan of you and your fascinating works, and it remains as is. However, very sorry to say that but the slurp sloppy mouth sounds during gulps make it reeaaaaallly hard to keep listening for me (and maybe many others like me who are sensitive).. I love you bro so please do not be offended.

  42. IOTA Price Finally Seen Upward Movement

  43. I think you misspoke. You made it seem like it took 10 minutes to confirm transactions, one at a time from the pool of the over 200k unconfirmed transactions. If that were true, then the transactions would still be processing today. If 100 transactions came through at the same time, those 100 should have been confirmed within the 10 minutes. Though, I guess that depends on the fee you paid. Higher fees get processed sooner. Lower fees could take hours or more.


  45. So when i understand well, IOTA and same base coin are on centralized network? Does only central server hold DAG graph and all transactions goes through? If yes, so its probably improovement cental bank system, not a bitcoin.

  46. the coordinator does not validate . the coo just releases milestones like checkpoints in bitcoin. all tx in subtangle of a milestone will be validated by each nodes individually to see if a tx can be confirmed or not. so basicaly coo does nothing realy

  47. At 10:48 Siraj says with more participants the confirmation/transaction times are getting faster, but that is incorrect, they just stay the same. It is still good in terms of scalability though.
    Also the picture with red and green nodes is kinda wrong – for example there is a red node with no incoming edges, so it should have been gray.

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