n modern days, transactions can vary from a huge transaction to microtransaction. But Bitcoin and other cryptocurrency doesn’t allow a microtransaction without any transaction fee. A new cyptocurrency called IOTA has no transaction fees which means IOTA can be used for micropayments. We can send IOTA to an address with no fees charged. Basically, instead of a smaller subset of the network being responsible for the overall consensus (miners/ stakers), the entire network of active participants are directly involved in the approval of transactions. As such, consensus in IOTA is no longer decoupled from the transaction making process: it’s an intrinsic part of it, and it’s what enables IOTA to scale without any transaction fees. A full node environment is setup and added this node to neighbors which are attached to the tangle. Performed a microtransaction from full node to the other node and addressed few concerns which existing system is having like transaction speed and scalability. This removes the existing problem of transaction fee and at the same time provides various benefits like scalability and high transaction speed.

Introduction:

What is blockchain?

A blockchain is made up of two primary components: a decentralized network facilitating and verifying transactions, and the immutable ledger that network maintains. The question is how do we perform microtransaction in this ledger.

The answer to the above question is that with blockchain, we can imagine a world in which contracts are embedded in digital code and stored in transparent, shared databases, where they are protected from deletion, tampering, and revision. But using bitcoin, the transaction fee is greater than the normal fee using the bitcoin and how fast and scalable is the solution.

The Problem with Blockchain

The new feature can totally change the mobile business and some related paid content, like apps or games. This field deals mostly with micro-transactions and its expensive fee structures. However, “Bitcoin has the potential to help this problem by generally lowering fees. But things get really powerful with off blockchain transaction, because it literally brings the fees down to zero”. But this would really not be a good option to make a microtransaction as the transaction fee is really high.

Scalability