The above criticism can be summed up in one word: Centralization. The criticism does not fall on deaf ears at IOTA; on the contrary, the Coo was intended from the outset as a transitional solution.
The IOTA Foundation writes in its Bitcoin news on the question of the end of the coordinator:
“The short answer is that the coordinator can and will be removed if our research team is convinced that we understand the coordinator-free tangle sufficiently. Therefore, the IOTA Foundation plans to launch a coordinator-free tesnet in the coming months. Within this Bitcoin news, various theroetic approaches will be tested to make IOTA a consistently decentralized IoT platform without scalability problems in the long run. Here is more info: Is Bitcoin News Trader a Scam? Read This Review Before You Sign Up!
One of these theoretical approaches is the introduction of a reputation system for nodes. Nodes which try to confirm invalid processes (e.g. double spending) should gradually lose influence in favour of reliable nodes with a high reputation. First tests with the Cornell researchers Walsh and Sirer Reputation System have delivered “promising results”, according to the IOTA blog. There will also be improvements in the (Markov-Chain-Monte-Carlo-)procedure, which is used to select the transactions to be confirmed.
Star images of the Bitcoin formula
IOTA sees another way to banish the Coo from the tangle for good in the “Stars” concept. Stars” should include nodes of “well-known public institutions such as governments, companies or individuals” that have a “particularly high level of trustworthiness”. These “trustworthy” nodes would then carry out reference Bitcoin formula transactions similar to the coordinator’s milestone transactions. This is also a kind of reputation system. Instead of a single one, there would be many coordinators and the user or community would have freedom of choice in the composition of the star constellations like this: http://www.onlinebetrug.de/bitcoin-formula-scam
At the (not yet foreseeable) end, according to the ambitious goal of the IOTA Foundation, the tangle can be regarded as “a developing cellular automaton that isolates and finally eliminates the actions of the misbehaving nodes by employing a suitable evolutionary algorithm”.
IOTA’s ambitions are great – after all, the Tangle is to become the platform for the IoT industry. Numerous large companies have already expressed their interest, including Bosch, VW and Fujitsu. In the BTC-ECHO podcast, Alex Roos spoke with IOTA expert Tobias Zeitler about the status quo of the IOTA project, its goals and the hurdles still to be overcome.