Saturday, April 10, 2021

Charles Hoskinson Sparked Debate about IOTA’s Feeless TXN, IOTA Foundation’s Hans Moog Weighs In

The CEO of IOG, Charles Hoskinson, who created Cardano, an emerging smart contract platform, sparked a debate about IOTA’s feeless transactions. He, in fact, tagged it as a misconception, stating that nothing is free, but the fees can be subsidized to make it look like a feeless transaction for users.

In a video shared on Twitter by ~C4Chaos, a pseudonymous crypto enthusiast, Hoskinson is seen disputing the fact that zero fees are paid for transactions initiated on IOTA.

Read Also: IOTA Co-Founder Dominik Considers Partnership to Bridge Cardano (ADA)

Contradicting Hoskinson’s claim, ~C4Chaos tweeted, “IOTA is FEELESS, Charles Hoskinson, it’s not a misconception. it’s called DESIGN PHILOSOPHY. sure, someone along the chain ultimately pays for energy used by nodes, servers, etc. as a cost to run their business for using the protocol. but from a user perspective, you pay ZERO.”

Reacting to the user’s assertion, Charles Hoskinson wrote, “It is impossible to be Feeless. An action like a transaction bears a cost. It has to be transmitted, processed, and stored. Someone must pay those costs. Saying no fee to the producer means you are subsidizing it elsewhere either through inflation or another party.”

Read Also: IOTA Partners With Tanglehub and Observer for Smart City Application in Asia and Europe

IOTA Foundation’s Hans Moog Weighs In

Hans Moog of IOTA Foundation also weighed in, comparing transactions on IOTA to sending emails:

“There is a big difference between “feeless” and “free to use”. Sending an email is not “free” – you need a computer and an internet connection but its feeless. IOTA works in the same way. You need a node, an internet connection and some funds to send around.”

David Sønstebø, who ended his relationship with IOTA Foundation in December 2020, also shared his opinion over the IOTA feeless transaction debate.

Sønstebø responded, “Feeless does not mean incentive-less.”

Read Also: IOTA Inching Closer to Complete Decentralization

What Makes IOTA Different from Bitcoin, Ethereum, Cardano?

IOTA is powered by a distributed ledger known as Tangle, unlike Bitcoin, Ethereum, Cardano, and others that are powered by blockchain.

Tangle is designed to be scalable so as to gain adoption for exchanging data between various IoT devices like electric cars.

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Solomon Odunayo
Solomon has a growing passion for writing, this propelled him to keenly work on Eagles News Media for about two years before delving into the cryptocurrency and Blockchain industry he finds more interesting. He worked as a crypto Journalist and Editor at NewsLogical before joining Herald Sheets, owing to the priceless experience he has accumulated since he became a contributor in the crypto community.

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