One of the greatest criticisms to IOTA (MIOTA) is the presence of a central coordinator, because it makes the network centralized. But the central coordinator is a necessity in the early stages of the tangle because without it, the network would be susceptible to attacks, crippling it before it even gains widespread adoption. However, after the coordinator is removed, IOTA will be as susceptible to attacks, just like the blockchain networks such as Bitcoin. So, what’s the future of IOTA in terms of balancing between network security, and decentralization in the future?
One idea that seems to have caught the eye of the IOTA community is the network bound proof-of-work (NBPOW). Network bound proof-of-work takes advantage of the scarcity of bandwidth to make network attacks costly, and hence less likely. Just like it is extremely expensive to attack bitcoin due to the cost of computational power, NBPOW also makes it extremely expensive for an attacker to do the same due to cost of bandwidth.
According to the IOTA foundation, bandwidth will continue to become scarce now that the world is moving towards 5G. As such, IoT devices running on the IOTA (MIOTA) tangle network would be protected from attacks by the scarcity of the EM spectrum, hence making the IOTA (MIOTA) network extremely secure. It would be as secure as Bitcoin (BTC).
The implementation of NBPOW would benefit IOTA in two ways. The first and most obvious one is network security. A more secure network means that its adoption will also be higher in the business world. Part of the reason why bitcoin is so popular is because of its security. Investors are always sure that they can bank on the security, and that’s what pushes up its value.
With NBPOW, IOTA would have a similar level of network security, which would give more businesses the confidence to build their systems around IOTA post Coo. In the IoT space, network security is paramount especially when it comes to autonomous devices. On top of that, NBPOW would make IOTA (MIOTA) a truly decentralized network. Given that IOTA is feeless and fast, the added feature of security and decentralization would elevate it to the top.
For an IOTA investor, implementation of NBPOW would be a massive boost to the value of this crypto, since its partnerships would grow. At the moment, IOTA (MIOTA) has some high level partnerships, especially in the mobility industry, and in the development of smart cities. That’s in spite of the fact that it has a central coordinator, which effectively makes it centralized. This goes to show that that businesses have faith in IOTA even when it centralized. Once it goes truly decentralized, by removing the central coordinator, IOTA adoption will gain more traction, and push up its value.
IOTA (MIOTA) stands a good chance to rise back to its all-time highs post the central coordinator. It also means that IOTA (MIOTA) is highly undervalued at current prices, when it’s still trading under a dollar.