Tangle versus Blockchain

Blockchain vs Tangle

Distributed ledger technologies (DLTs) have introduced revolutionary concepts in the world of digital transactions. Two prominent DLTs, Tangle and blockchain, offer distinct approaches to decentralized systems. This article aims to provide an in-depth analysis of Tangle and blockchain, exploring their underlying concepts, features, and potential applications.

I. Tangle: A Directed Acyclic Graph (DAG) Approach

A. Origin and Overview:

The IOTA Foundation, established in 2015, pioneered the development of Tangle as a DLT. Tangle departs from the traditional blockchain structure by adopting a Directed Acyclic Graph (DAG). Rather than a linear chain of blocks, Tangle represents transactions through a web of interconnected nodes, enabling a more flexible and efficient system.

B. Data Structure and Transaction Verification:

Tangle’s DAG structure organizes transactions as nodes, forming a mesh network. Each new transaction confirms and verifies two previous transactions, creating a decentralized and self-verifying system. This novel approach eliminates the need for miners, reducing resource consumption and enabling faster transaction processing.

C. Benefits of Tangle:

  1. Feeless Transactions and Cost Efficiency:
  2. Unlike blockchain, Tangle facilitates feeless transactions, making it highly cost-effective for users. This feature eliminates barriers for micro-transactions and encourages the adoption of the technology across various industries.
  3. Scalability: Tangle’s Growing Efficiency:
  4. As the number of transactions increases, Tangle becomes more efficient due to its parallel processing capability. This inherent scalability makes it an ideal solution for applications that require high transaction throughput.
  5. Energy Efficiency: Eliminating Resource-Intensive Mining:
  6. Tangle’s consensus mechanism does not require energy-intensive mining operations, resulting in significantly lower energy consumption compared to blockchain. This environmental-friendly approach aligns with the global focus on sustainable technologies.

D. Potential Applications and Future Prospects:

Tangle has the potential to revolutionize global financial systems by enabling feeless micro-transactions, promoting financial inclusion, and reducing intermediaries’ influence. Moreover, its efficiency, security, and transparency can enhance data interaction in fields like supply chain management, identity verification, and the Internet of Things (IoT). Ongoing research and development continue to refine Tangle’s capabilities, promising exciting prospects for its future applications.

II. Blockchain: A Chain of Blocks for Secure Transactions

A. Genesis and Fundamental Concepts:

Blockchain technology originated with Satoshi Nakamoto’s Bitcoin whitepaper in 2008. Blockchain utilizes a chain of blocks, each containing a timestamp, a list of transactions, and a cryptographic hash of the previous block, ensuring transparency and immutability.

B. Data Structure and Transaction Verification:

Blockchain’s sequential chain of blocks forms an append-only ledger, where each block reinforces the integrity of previous transactions. Miners validate and verify transactions by solving complex mathematical puzzles, adding new blocks to the chain through a consensus mechanism, such as Proof-of-Work (PoW) or Proof-of-Stake (PoS).

C. Security and Transparency:

  1. Immutable and Tamper-Resistant Ledger:
  2. The transparent nature of blockchain, combined with cryptographic hash functions, ensures the immutability of recorded transactions. Once a transaction is added to the blockchain, altering or tampering with it becomes exceedingly difficult, providing robust security against fraud and unauthorized modifications.
  3. Public Ledger: Enhancing Transparency:
  4. The decentralized nature of blockchain, where multiple participants maintain and validate the ledger, offers increased transparency. Transactions are visible to all network participants, fostering trust and accountability in various sectors, including finance, supply chain management, and healthcare.

D. Applications Across Industries:

  1. Finance: Blockchain has disrupted the financial sector by enabling secure and transparent peer-to-peer transactions, eliminating intermediaries, and introducing innovative concepts like smart contracts and decentralized finance (DeFi).
  2. Supply Chain Management: By recording and tracking each step of a product’s journey on the blockchain, supply chains can enhance transparency, improve traceability, and mitigate counterfeit risks. This technology ensures the authenticity and integrity of goods, benefiting consumers and businesses alike.
  3. Healthcare: Blockchain’s decentralized and secure nature can enhance data integrity, privacy, and interoperability in healthcare systems. Patient records, clinical trials, and drug supply chains can be securely managed, improving efficiency and patient care.

III. A Comparative Analysis: Tangle vs. Blockchain

A. Data Structure Comparison:

Tangle’s DAG structure allows for a non-linear and highly scalable network, whereas blockchain relies on a linear chain of blocks. Tangle’s inherent scalability makes it more suitable for applications demanding high transaction throughput.

B. Transaction Verification and Cost:

Tangle’s node verification eliminates the need for resource-intensive mining operations, enabling feeless transactions. In contrast, blockchain relies on miners to validate transactions, potentially involving transaction fees based on network and transaction load.

C. Security and Transparency:

Blockchain’s PoW/PoS consensus mechanisms and transparent ledger make it highly secure against tampering and fraud. While Tangle provides a higher level of transparency due to its interconnected nature, its security is still evolving.

D. Potential Use Cases and Future Developments:

The choice between Tangle and blockchain depends on specific requirements. Tangle’s scalability and cost efficiency make it ideal for applications requiring high transaction throughput and minimal fees. Blockchain’s robust security and transparency make it suitable for use cases where trust and accountability are paramount. Both technologies continue to evolve, expanding their applications and shaping the future of DLTs.


Tangle and blockchain represent two distinct approaches in the realm of distributed ledger technologies. Tangle’s DAG structure, feeless transactions, scalability, and energy efficiency make it well-suited for various applications. Blockchain’s chain of blocks, secure verification mechanisms, and transparency have already revolutionized several industries. As the technologies advance, their potential impact on global financial systems, data interaction, and industry-specific operations becomes increasingly significant. Choosing the appropriate DLT depends on specific requirements, considering factors such as scalability, cost-effectiveness, security, and transparency. The ongoing development and adoption of Tangle and blockchain will shape the future of DLTs, propelling innovations in digital transactions and paving the way for a decentralized and secure digital era.

Author's Bio

Pranup G

Forward-thinking, multidisciplinary executive and business leader with 15+ years of experience spearheading operational and cultural transformations, maximizing bottom-line savings, and driving profitability.

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