Coordicide: IOTA introduces the Mana reputation system as a coordinator replacement

The IOTA Foundation implements a new reputation system called Mana for the decentralized identification of trustworthy nodes in the Tangle network.

The IOTA Foundation presented its future reputation system for nodes called Mana in a blog post on September 28th.

Mana is intended in particular to offer protection against so-called Sybil attacks, in which a person or organization wants to take over or control the network using several digital identities.

Mana is supposed to stop Sybil attacks

IOTA mathematician William Sanders describes in the article how Mana’s reputation system should enable decentralized verification of nodes after the elimination of the previous Tangle coordinator known as Bitcoin Trader.

Reputation points called mana should be used, which are assigned to a participating node in the event of a successful transaction. By working reliably in the Tangle network, nodes should be able to build a higher reputation over time based on their reliability.

Should a node propagate a wrong transaction to the network, holders could withdraw mana assigned to it and delegate it to another network node.

In contrast to the Proof of Stake principle common in many blockchains, holders do not run the risk of losing stake with the mana approach.

IOTA also wants to rely on Mana to control network utilization in the Tangle. According to Sanders, the amount of data that can be assigned to the Tangle by a node will be proportional to its mana inventory.

The Mana approach therefore uses an incentive system that rewards large node operators for reliability with greater weight in the Tangle network. IOTA developer Sanders does not rule out that this could create a secondary market for mana.

Coordicide as a long-term project

IOTA presented the roadmap for the Coordicide planned abolition of the Tangle coordinator in July 2019 . In January 2020 , IOTA published a version of its Coordicide whitepaper updated to reflect the progress it had already made. The IOTA Foundation wants to completely abolish the network coordinator by 2021 .