IOTA is a cryptocurrency based on Tangle. Its main aim is to serve the Internet of Things economy by giving power back to the masses using a unique distributed ledger. It was the first crypto coin to use Tangle. The Tangle blockchain is unique; for each transaction to go through, it has to be approved by two predecessors. This gives it infinite scalability and the ability to run without any transaction fee.
Team behind IOTA
The IOTA coin is administered via the IOTA foundation, which is based in Germany. This coin’s team is excellent, but it is not as large as you would expect. As a result, development of the coin has been a bit slow. However, its development has been spurred on by connections with large players in its niche industry such as Lufthansa, Bosch, and VW.
The Idea Behind the Coin
The crypto coin is based on the Tangle blockchain. Its idea is going to revolutionize the industry as a whole. The project aims to offer real-time and secure transactions between machines. These machine-to-machine payments will make it the go-to project for IoT transactions. As a project, IOTA wants to underpin the coming revolution of the IoT industry. Essentially, it aims to be the backbone of this industry.
This project’s idea seems realistic. Today, almost all appliances, car, and devices are interconnected via the internet. You can essentially control your entire house using an app on your phone. With time, IoT will lead to the creation and implementation of concepts such as smart cities. By 2020, it is estimated that IoT will be made up of 30 billion devices.
How it Works
IOTA is quite unique. It is based on Tangle, which has no chain and no blocks. There are also no miners and no other crypto uses Tangle apart from IOTA. As a result, IOTA is blockless and the consensus is achieved in a unique manner. To participate in the network, each person has to approve two past transactions.
The Benefits of IOTA
There are four main benefits of using IOTA. These are:
- Infinitely Scalability
Each transaction requires that a sender verify two past transactions. Thus, as the number of users grows, more transactions can be approved faster. The result is that IOTA has infinite scalability. Each approval requires the device to perform proof of work at low power. Most mobile phones and computer devices can perform these simple calculations.
- High Speed
The transaction time reduces as the number of users grows. As the IOTA project grows, this speed will near the network propagation speed.
- No Fee
Since Tangle does not rely on miners, there are no transaction fees extracted from the system to validate a transaction.
- Fixed Supply
All IOTA in existence and that will ever exist were created during the genesis block. There is a fixed supply of 2,779,530,283.
Summary
IOTA is quite popular. When the coin was released in 2017, trading was so intensive that it crashed the Bitfinex platform for 24 hours. This coin offers real solutions for the problem of scale, speed, and high costs of transactions. It is going to play an important role in the machine-to-machine economy.
Photo Credit To Crypto News Daily Via Flickr
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