ByteBall vs IOTA - battle of two DAG cryptocurrencies

in cryptocurrency •  2 years ago

Foreword

You've probably noticed IOTA appearance among top 10 crypto at cmc. It was probably the fastest 1B USD boom in all crypto history. What is so special about IOTA and let's talk a bit more if evaluation is solid or it's just temporary hype and if there are another projects with similar potential.

IOTA is a crypto project using blockchain based on Direct Acyclic Graph (DAG) aimed at IoT (Internet of Things) industry. DAG concept was officially introduced in 2015 and you can read more about it here. But several people were already working on it before because it's quite intuitive approach.

There are currently at least two projects that are utilizing DAG concept (ordered by project start time).

  • Byteball
  • IOTA

Byteball

Byteball is interesting crypto project and it's in my personal crypto TOP10. It is decentralized system and it allows tamper proof storage of arbitrary data. It brings lot of interesting features internally (DAG) and also some other from users perspective (bots, simple user-defined smart contracts, etc.). You can see it as Bitcoin competitor with some awesome features.

IOTA

IOTA looks also very promising and it's more focused on Internet of Things. Most interesting aspect of IOTA ability to work with various kinds of hardware and from user perspective it's complete absence of transaction fees that is achieved by incorporating some side level of POW (Proof of Work) that prevents spamming.

What is so cool about DAG

Both of these project (ByteBall and IOTA) are utilizing DAG (Direct Acyclic Graph) rather than classical Bitcoin-like blockchain. It's actually pretty cool technology that allows certain significant advantages over classical block-chain that is used in Bitcoin-like currencies (Ethereum included) and most significant are listed below. ByteBall utilizes more DAG advantages than IOTA because IOTA partially uses POW confirmation schema and with ByteBall there is a final confirmation on main chain without any PoW evaluation.

These are most significant advantages of full DAG

  • fast initial confirmation
  • better scalability, no block limit
  • no orphaning
  • no delay issue in pushing
  • transaction finality

Some of these above are valid just for ByteBall implementation but not for IOTA, especially the last one. From user perspective the most important is the first and the last advantage. From technological issues and high-demand adoption, scalability is the most important.

Thing is that for classical blockchain implementation you wait for at least one confirmation but with Byteball you have practically immediate confirmation. Also with classical blockchain you have just a probability that your transaction is valid. Therefore for larger sums, you need to wait for like 10 confirmations or so to have high certainty that blockchain will not change and there will not be another longer blockchain path found. With Byteball, when it's confirmed, it's confirmed. It's just final.

IOTA vs ByteBall comparsion

Let's do some basic comparison of ByteBall vs IOTA

Proof of confirmation

  • IOTA: PoW
  • ByteBall: based on main chain

Transaction speed

  • both 100+ Tps

Orphan resistence

  • IOTA: no
  • ByteBall: yes (blackbytes)

Coin supply

  • IOTA: 2,779,530,283 MIOTA
  • ByteBall: 255,492 GBYTE / 1,000,000 GBYTE

Transaction fees

  • IOTA: no
  • ByteBall: yes

Final Transactions

  • IOTA: no
  • ByteBall: yes

Transparent transactions

  • IOTA: yes
  • ByteBall: yes

Anonymous transaction

  • IOTA: private transaction in roadmap
  • ByteBall: yes

Integrated bots

  • IOTA: no
  • ByteBall: yes

Chat and pay

  • IOTA: no
  • ByteBall: yes

Prediction market

  • IOTA: no
  • ByteBall: yes

KYC/AML ready

  • IOTA: no
  • ByteBall: yes

Initial distribution

  • IOTA: ICO
  • Byteball: distribution rounds to BTC and GBYTE users

Final words

There are actually much more features like various services provided by ByteBall bots (like Exchange service or Transition Bot) available in Bot Store and more will come. Depends what you prefer, but if we just compare features and traits on both IOTA and Byteball, Byteball is superior right now in terms available features. Also it's much more handy for traditional crypto-currency operations.

On the other hand IOTA is better suited for Internet Of Things and there are various use-cases for HW to HW. IOTA has also pretty loaded roadmap containing really interesting concepts and implementation. Besides ongoing implementations of C++, Rust and Go clients, additional plans like Swarm Client, Automated Snapshotting and much more shows that developers have huge plans about the platform.

From market evaluation PoV, I can see IOTA personally overpriced (over 1B USD) and ByteBall (over 150M USD) under-priced. But have in mind market can see it differently and only time will tell which project is superior. When I see both projects, their features and plans, they are actually no competitors at all, they just share similar underlying technology inside and share certain features but their focus is different. After making this research I must say I like both of these projects although I consider ByteBall more interesting for general crypto user like myself. As I said there are not much danger for each other but rather for some older types of crypto coins. Simply said ByteBall is great for man-man or man-bot interactions and IOTA for machine-machine or man-machine interaction.

References

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Nice write up. I'm partial to Byteball since it is available as an AirDrop and I can get it for free :)
To those of you who aren't aware and are looking for some free Byteball coins... Check out this link here and follow the instructions: https://byteroll.com/airdrop

Based on how many Bitcoins you own, you get a certain percentage of those in bytes (coins of Byteball) each full moon (approx. once a month). I got over $100 worth of coins at the most recent AirDrop. Looking forward to the upcoming ones!

·

Thanks. Yes, people can get additional ByteBalls by hodling Bitcoins or ByteBalls and registering for next Airdrop before July 9, 2017 at 04:07 UTC

Thanks jimmco, for explaining these two crypto currencies. I've been wondering what IOTA was and you've explained it nicely. Thanks

Great article, i'll be watching out for more.

·

Thank you, I appreciate.

This post received a 4.2% upvote from @randowhale thanks to @jimmco! For more information, click here!

Finally someone with a sensible write up on iota.

Transaction speed
  • both 100+ Tps

You mean transaction throughput (how many transactions per second can be confirmed total), not confirmation latency (delay) for each transaction (which can occur in parallel for many transactions) which is an separate issue.

The limitation on the throughput in Byteball is that the 12 witnesses have to validate all the transactions. This is why the set of witnesses must be small and carefully selected/anointed (which is a serious flaw and risk…see link below). This also limits the transaction confirmation latency (delay) as well to “~30 seconds” which was qualitatively confirmed by Byteball author @tonych.

There are many more flaws in both Byteball and IOTA.

·

Corrected the broken 404 error for the link:

There are many more flaws in both Byteball, [Hashgraph, SPECTRE,] and IOTA.

IOTA 100%

Thanks for the write up 👍 I had heard of IOTA but not Byteball. I am intreauged now and am going to do some more research on Byteball.

Nice post. Iota is extremely promising and although it is not its main purpose it is very likely to detrone bitcoin as a payment method because of its free transactions and speed. I believe people investing now will make huge profits sooner than most people think.

Internet Of Things - IOT - extremely interesting concept, I can see a great future in this.

There's another DAG chain cryptocurrency entering the battle: Yobicash.

Yobicash is a cryptocurrency based on DAG chain so doesn't have the scalability issues associated with blockchains.

Yobicash is a cryptocurrency built to secure the storage and sharing of data by ensuring the main properties of information security: confidentiality, integrity and availability. To enforce these properties, Yobicash employs cryptographic protocols, data replication, economic incentives and a DAG chain of transactions.

The cryptographic primitives and design are described by project designer Christian Nyumbayire in the Yobicash whitepaper first published in October 2017: https://yobicash.org/whitepaper.pdf

In summary, Yobicash reinforces:

privacy through zero-knowledge proof and encryption
data integrity through cryptographic authentication
data availability through replication

To find out more, join the Yobicash chat: https://t.me/joinchat/AdtOLUQpI9uUG5bH326S2w