Enhancing Efficiency in the IOTA Tangle: A POMDP-Based Tip Selection Approach

The IOTA Tangle represents a promising alternative to blockchain technology, particularly for the Internet of Things (IoT) environment. However, ensuring efficiency and fairness in transaction processing remains a significant challenge. This paper focuses on the efficiency of the Tangle by evaluating a novel POMDP-based Tip Selection Algorithm (TSA). Through comparative analysis against Weighted TSA, G-IOTA, and E-IOTA under varying network loads (lambda values), the POMDP algorithm demonstrates superior performance in maintaining the fastest confirmation process and more efficiency in different network conditions. These results establish POMDP as a scalable and efficient solution, contributing to the advancement of decentralized ledger technology. Future directions include real-world testing and the integration of adaptive network factors for enhanced scalability.