Ive read it can support a lot. As of today 180 transactions per second have been tested. This DAG algorithm is amazing and it has huge potential.
On the other hand I am concerned with the happened actions as a result of October attack on some wallets. The dev team took over the funds of the IOTA users. I understand that was done to protect the users and the funds are being returned to the customers as we speak. But the main concern is that is it practically possible to take funds away from any IOTA user. Theoretically bad people can simply get your money. Single developer can become bad person or somebody will extort information from developer on how to do this, those are not matter in the context. What matters is there is an ability to steal money from IOTA wallets. I think this one item will be limiting factor for IOTA growth to its potential. I think IOTA devs need to let go of this notion and make changes to the algorithm so nobody can take away funds from other users using high access permissions. Only then we will see how IOTA will take over Bitcoins fame.
I agree with you, in the industry where safety is put on the first place, to have such a problem with a purse, there is already a huge minus. (
Probably not all people know about this, because the interest in IOTA is still great.
I was reading up on the issues of reusing address for transactions multiple times and why it is bad. It looks like if person uses the same address from his wallet multiple times it is easy to reverse engineer his wallets seed. The more address is reused the easier guessing gets! That is another big flow in the IOTA ecosystem and it has been proven by October attack. Definitely this is another direction to improve upon. I would say that developers need to implement additional mechanism of address expiration. For example, after 10 minutes newly generated wallet address expires. Or it marked as expired after transaction completed. I think it is still possible to implement at this point without much of the struggle - the IOTA network is still young and pioneers are eager to learn about new features and flexible about changing things around. Especially if it improves security around human mistakes with this wallet.