This consensus method deserves a category of its own and isn’t even technically a blockchain. The tangle network relies on every user acting as a node. Before a transaction can be confirmed the user must validate two or more previous transactions. After you have done this another user will validate your transaction in order to make a transaction of their own. In this way rather than a chain of blocks we have a net of transactions. This allows for free instantaneous transactions and scales extremely well. However there are still questions about security and so “oracles” are needed to serve as a kind of supernode and police the system.
- Immediate transactions
- Free transactions (No fees)
- Allows for very small micropayments ($0.0001 if the user wants)
- Designed to operate on systems with very low capacities (eliminates the need to have a lot of computational power on every device)
- Seemingly less secure than the other consensus methods
- Currently uses a “Coordinator” which can be thought of as training wheels until the network is large enough to run without it. There is uncertainty as to how the network will behave without it once it’s removed.
Cryptos that use Tangle
TL;DRTangle allows instantaneous free transactions by making everyone a node at the cost of security