Discussing Differences: Tangle vs Blockchain

The tangle and a blockchain are two different platforms based on the same principles. The tangle is built on a DAG or Directed Acyclic Graph.

This basically means that instead of building a chain where blocks are added in intervals, the tangle can achieve transactions with no transaction fees. As Tangle grows and more users make transactions, the entire system becomes faster and more secure.

Another thing to look at is the consensus. In blockchain technology, a consensus is achieved through a very complex mechanism where parties are racing each other and the goal is to add the next block on the Blockchain and win the reward which in this case is transaction fees. This leads to a faster centralization of the Blockchain.

In the tangle, however, each and every participant can make a transaction and by that also participates in the consensus. By doing this, the network stays entirely decentralized and no need of paying a transaction fee.

Today, blockchain technology is used in almost every industry. Many companies use it to improve their work and the services they offer. Despite its broad use, blockchain technology has some small issues that need resolving. The first one might be the inability to make micro-transactions. Tangle, on the other hand, is specifically built to handle great volumes of micro-transactions. Also, transaction fees aren’t being paid since there is no third-party involved. You do need to know, however, that every computer is used as a node so that means electricity is used each time you make a transaction. It’s not necessarily free but it’s definitely extremely low cost.