Abstract: The need for decentralized consensus system and the risks associated with centralization suggests a solution for storing transactions in a distributed ledger and a standard permissionless protocol which governs the same. A Blockless Distributed Ledger is primarily based on a DAG (Directed Acyclic Graph) for storing transactions. Unlike Blockchain there are no miners which removes any possibility of decoupling. Furthermore, it offers features for machine to machine micropayment system using a cryptocurrency for the Internet of Things industry known as “IOTA”. The main aim of IoT industry now is to connect daily used objects to the Internet which have the ability of sensing and actuation which may or may not involve humans. This paper discusses how a Blockless Distributed Ledger implemented by “IOTA”, stands apart over a traditional Blockchain of which “Bitcoin” is a well-known example for storing transactions as well as description of a use case involving a smart cable and a smart socket which pays for its electricity through IOTA and shares its remaining power with other cables.
Keywords: Directed Acyclic Graph (DAG), IOTA, Bitcoin, micropayments, Transactions per Second (TPS)