Have you ever heard about Internet of Things? This is a new technology will soon cover a large part of our lives. This technology will allow devices like refrigerators to cars, to go “Smart” in order to communicate each other to do a function. So we need an efficient communicate and transaction between these devices. It is called IOTA.
Definition of IOTA
- IOTA is a crypto token. It is combination of Things and Blockchain
- This system allows transactions to happen between IoT devices.
- Users can make IOTA transactions for free. The best part is that you can do that even when you are offline.
- In 2011, the core team of IOTA started to work on blockchain technology.
- In 2016, they created the IOTA system and the company.
- IOTA’s CEO, David Sonstebo has been praised for his marketing approach numerous times. This strategy focuses on establishing sustainable growth and a strong strategic network. The PR activities and blogging of IOTA is handled by David himself.
- IOTA uses its own technology called Tangle. Tangle is the reason for its free transactions, which is Peer-to-Peer basis.
- The payment takes place only after the confirmation of the previous two transactions by the originator of the transactions themselves. As these verifications are spread throughout the network, it shows that the network is totally tangled.
- Because of peer-to-peer transactions and no transaction fee, IOTA has no scalability problems. If the users of the network rise the speed will go higher. It is because to make a transaction, two of them has to be verified.
How to buy and store IOTA?
IOTA is available on all the major exchanges, like Binance, HitBTC, Shapeshift. It can be traded through exchanges and via other cryptocurrencies like Bitcoin or Ethereum. Something you should know is that every one million IOTA is MIOTA so be aware of this fact when you go on a trade.
In order to store your IOTA, first, know that IOTA has its own wallet available on their website. It is not very user friendly but you can download it on your desktop and start using it. There is also android wallet named IOTAWALLET.
What are the differences between IOTA and other cryptocurrencies?
There are some fundamental differences between IOTA and other cryptocurrencies. Take Bitcoin for example compared to IOTA:
- Bitcoin miners process transactions in Blocks on Blockchain. It caused a restriction in a number of transactions that can be processed in a block. It leads to slower transaction in the network.
- In IOTA network there is no miner to secure the network. Instead, the transaction originator is supposed to approve 2 previous transactions on the IOTA network by performing some computations.
- So, it doesn’t need fees at all, as the transaction originator himself is incentivized to process his transactions and verify previous ones.
- Using special signatures IOTA is resilient to the next generation of computing
It means is that as the network grows, it can scale faster as many transactions get verified at a quicker rate.
The Tangle in IOTA. Notice there is no sequential chain of blocks like in Bitcoin but rather each transaction refers to two previous transactions.
Being the first one to guarantee zero transaction fees, IOTA certainly seems to have an interesting future. Currently under development stages, if it achieves all its objectives, it has the potential to dominate the market. It is predicted that around one billion objects will be connected by IoT technology by the year 2020. That’s a big market IOTA is targeting.
The IOTA team is working on meeting the expectations of long-term investors. They have introduced their brand new technology – called ‘Tangle’, and are setting new goals in this crypto world. The IOTA team continues to attract highly talented people and works on a humble marketing strategy.
In Aug 2017, a team at MIT published an article detailing their investigation into IOTA. The IOTA team developed their own cryptographic hash function which was discovered to have vulnerabilities involving different inputs hashing to the same output, which should never happen. Which is a big security risk and ideally has no place in the crypto world. The vulnerability was later patched.
While the technology behind IOTA may be interesting, it is always necessary to do research before investing in cryptocurrencies.