IOTA, the number 9 cryptocurrency by market cap is facing transaction issues from the last few days. According to Lewis Freiberg, Head of Ecosystem at IOTA, the main reason for the low transaction rate is Side Tangle - a parasite chain.
The current IOTA transaction confirmation rate is 6%. Which means 6 transactions are moving to the confirmed state from pending state out of every 100 transactions.
According to Freiberg a Side Tangle is a parasite chain. It is a result of a spammer using a modified software to select tips that only reference themselves. This results in a tangle of transactions being built up that is distinct from the main tangle. Transactions in the parasite chain are less likely to be confirmed and this is the main reason for such ow confirmations.
According to CoinMarketCap IOTA price is down 11.8% in this week and it is currently trading at $0.97. The important points to pay attention here is that the IOTA withdrawal is currently disabled on the major exchanges like Binance.
The blockchain transactions are not very scalable, for example, the Bitcoin blockchain supports an average of 5 to 6 transactions per seconds. Sometimes the transactions get delayed from is average time but it gets completed eventually. But the IOTA Tangle parasite chain is an entirely different case. The transactions are not completing because it getting broadcasted to a chain which is not even valid. So these transactions are getting lost at the end. This seems to be a serious issue which the IOTA development team has to address.
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2020-05-06 15:17:25.070169 | 2 min