BLOCKCHAIN FOR NEWBIES
Decentralization is a commonly misunderstood concept. For example, it is sometimes said that the reason cryptonetwork advocates favor decentralization is to resist government censorship, or because of libertarian political views. These are not the main reasons decentralization is important.
Proof-of-Importance, proof-of-work, and proof-of-stake all have one thing in common. They are all algorithms, which when applied to cryptocurrency help to maintain the order in which blocks are selected. This becomes important when we start to think of things such as double spending. This is where money is spent more than once (fraudulently). For example, some currencies use verification of each transaction in the blockchain to prevent this.
Today blockchain remains to grow up (it lies in pre Windows 1.0 territory). Of course, grow up it will, and fast because blockchain is to assets what the internet is to content — for the first time in history you can move value instantly from one place to the other side of the world with no intermediary.
One of the most interesting projects to have come out is Cardano. Similar to Ethereum, Cardano is a smart contract platform however, Cardano offers scalability and security through layered architecture.
This is the first in a series of beginner level posts, aimed at those who want to learn more about how IOTA works under the hood. We will loosely follow the whitepaper, but go a bit slower and add some pictures to clarify the basic concepts. In this article, we introduce the tangle, explain what it is, and how we study it mathematically in the IOTA research team.