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Holochain, Ethereum, and IOTA are all innovative decentralized technologies, but Holochain has some clear advantages over the other two, depending on the use case:
1. Blockchain-Free Structure (vs. Ethereum and IOTA)
Holochain: Does not use traditional blockchain. Instead, it operates as an agent-based system, where each user maintains their own data and validations. This drastically reduces the need for global consensus, making it more scalable.
Ethereum: Is based on blockchain, requiring global consensus for each transaction or smart contract execution, which can lead to scalability issues and high gas costs.
IOTA: Uses a structure called “Tangle,” which is more efficient than traditional blockchains, but still relies on centralized nodes in some scenarios
to prevent attacks.
2. Scalability and Energy Efficiency
Holochain: Highly scalable due to local data validation. Additionally, it does not require mining or proof-of-work (PoW) nodes, making it extremely energy efficient.
Ethereum: Although the migration to Ethereum 2.0 has improved efficiency, it still faces scalability and cost issues related to large-volume transactions.
IOTA: It is also energy efficient, but its scalability can be limited by bottlenecks in coordination and verification nodes.
3. Flexibility for P2P Applications
Holochain: Focused on peer-to-peer applications, allowing developers to build DApps that prioritize privacy and individual control of data. Ideal for truly decentralized networks.
Ethereum: Its strength lies in smart contracts, but its traditional blockchain design limits customization for specific P2P application use cases.
IOTA: It has a specific niche in IoT, but is not as adaptable for DApps that do not involve connected devices.