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IOTA network switches to PoS

Protocol system for the Internet of Things (IoT, or Internet of Things) IOTA announced the launch of the IOTA 2.0 testnet, which will improve the scalability and security of the platform.

The IOTA developers promise that the project’s new public network will be environmentally friendly by reducing its environmental impact and energy consumption. This is stated in message project teams.

IOTA moves to a new consensus mechanism

According to the developers, the main point will be that IOTA 2.0 will allow the network to move from the Proof of Work (PoW) consensus mechanism to the decentralized Proof of Stake (PoS).

“The new consensus mechanism is designed to improve the security of the network, making it more resistant to attacks and failures. This is critical to increasing trust and expanding IOTA use cases in sectors such as finance, healthcare and smart cities, where security is of paramount importance,” IOTA said in a statement.

In the new version, there is no longer a central authority that previously managed consensus on the blockchain. IOTA developers promise to further explore new concepts of efficiency and “true decentralization.”

For now, IOTA 2.0 works as a testing ground for developers and has no real value.

Prospects for IOTA 2.0

According to IOTA representatives, the testnet is an important milestone that opens up new opportunities for decentralization of the project’s ecosystem.

Some even believe that with this, the blockchain will be able to challenge Ethereum (ETH) and reach a market capitalization of $1 billion. IOTA is very close to solving the blockchain trilemma of scalability, decentralization and security.

Following the news of the launch of the testnet, the price of the IOTA token increased by almost 7%. According to CoinGecko, at the time of writing, the asset is trading at $0.2144. The maximum value over the past day was $0.2169.

Daily trading volume, meanwhile, jumped 30% to $14.9 million. IOTA’s capitalization currently stands at $701.9 million.

Source: Cryptocurrency

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