- IOTA co-founder, Dominik Schiener has argued that Permissioned networks such as Converge fail to empower individuals because they replicate centralized control.
- Meanwhile, permissionless networks like IOTA create an environment that foster true decentralization and open participation.
In the growing world of distributed ledger technologies, there has been a conflict that shows no sign of abating. Dominik Schiener, co-founder of IOTA, recently reignited this critical debate between permissioned and permissionless networks.
Taking to the X platform, IOTA’s co-founder, asserted that Permissioned networks, in this case highlighting or gaslighting platforms like Converge, fail to fundamentally empower individuals.
This is not bringing finance onchain. This is not leveraging decentralized technologies to disintermediate. This is not how we build composable, interoperable ecosystems. This is not empowering people.
In this case, it is important to understand the difference between permissioned and permissionless networks.
For starters, Permissioned networks including Converge leverage controlled access. In this case, there is a presence of central authority which governs participation and transaction validation. This method focuses on strong security and following rules, but it’s very different from the idea of giving power to everyone and letting the community decide.
On the other hand, Permissionless networks, in this casem IOTA encourages and enables anyone to join and
contribute without a central authority. By being open to everyone, IOTA encourages new ideas, which fits with the core idea of being decentralized. Notably, IOTA uses a different structure called the Tangle, not a typical blockchain. This removes miners and fees, making it potentially very fast and free to use.
Schiener’s critique strikes at the heart of the matter. Notably permissioned networks, by their nature, restrict participation and limit individual control. According to the co-founder, these networks, while utilizing blockchain technology, copy traditional centralized systems, offering zero to none true decentralization.
Many in the blockchain world believe that open, decentralized systems are key for building trust and new ideas. While permissioned networks might seem faster, they could reinforce old power structures and limit the true potential of blockchain technology.
Advocates for permissionless networks have put a spotlight on their
democratizing ability. By enabling anyone to build, transact, and innovate without seeking approval, these networks empower individuals.
IOTA’s commitment to permissionless innovation is deeply embedded in its design ground work. Its leaderless structure ensures that no single entity controls the system.
The key issue is finding the right balance between control and freedom. Permissioned systems offer control and compliance, but lose the benefits of decentralization. As blockchain evolves, users need to decide if they value open access or tight control more.
Meanwhile, IOTA is swappin hands with $0.1773 marking a 2.63% and 23.01% in the past month respectively. This has led to a $649.88M market cap after a 2.76% decline.
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