Alex Dovbnya
Cardano’s creator says IOTA actually has fees, but many disagree
During his last ask-me-anything session, the IOHK CEO and Cardano inventor said that IOTA, an Internet of Things-based cryptocurrency project, is actually not a sentiment:
It’s a common misconception. “IOTA has no fees.” Yes, it does. They are just subsidized in other ways. Folks, there’s network capacity, CPU, and data. It costs money. Nothing is free.
While he explains that there may be no fees for sending MIOTA, they must be paid “somewhere in the value chain”.
He draws parallels between sending transactions and tweeting on the social media platform Twitter:
Twitter is paying for it and doing it back with ads and selling my data. Your operating costs are in the billions.
IOTA advocates weigh in
However, some have questioned Hoskinson’s view, as the only thing that matters is that MIOTA can be broadcast for free by the end user.
IOTA founder David Otherwiseebo, who split from the IOTA Foundation in December, was one of those who got involved:
Feeless does not mean without incentives.
Hans Moog from the IOTA Foundation compared MIOTA transactions with emails in his tweet:
Sending an email isn’t “free” – you need a computer and an internet connection, but the feeling. IOTA works the same way. You need a node, internet connection, and some money to send around.
In contrast to Bitcoin, Ethereum and Cardano, IOTA is not a blockchain. It’s actually powered by a distributed ledger called Tangle, which is scalable enough to be widely used for exchanging data between different IoT devices like electric cars.
Last February, IOTA faced poor advertising after the blockchain was essentially turned off after the Trinity wallet was hacked.
However, with the production-ready IOTA 2.0, the coordinator node that is currently responsible for confirming transactions will be removed, thereby completely decentralizing the network.
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