IOTA aims to become the currency of the Internet of Things (IoT) by creating a payment system for all devices that can connect to the internet or to each other. It uses blockless blockchain technology, which makes it scalable, lightweight, and costless.
But what’s really impressive about IOTA is its zero transaction fees, which means it can be used for even the smallest microtransactions without the worry of hefty fees eating away at your profit margins! If you’re considering investing in IOTA, see the current price and IOTA price prediction before you make a decision.
This article will tell you everything you need to know about IOTA, including how it works, what sets it apart from other cryptocurrencies and more!
Based on a new distributed ledger technology, “The Tangle”, it is being developed by an open-source non-profit organization called The IOTA Foundation. It was founded in 2016 by David Sønstebø, Sergey Ivancheglo, Dominik Schiener and Dr. Serguei Popov.
Here are some interesting facts about this unique cryptocurrency:
- IOTA’s goal is to create a market for transaction fees that will enable machine-to-machine payments for IoT applications such as smart homes, smart cities, connected mobility, and more.
- IOTA aims to be a public distributed ledger that can enable secure data transfer between devices on its network. At present, we are still at an early stage with only a few projects underway. However, there are already many exciting developments taking place in this space.
- IOTA is based on a revolutionary new distributed ledger technology called “The Tangle” instead of blockchain, which has seen significant growth over recent years thanks to cryptocurrencies such as Bitcoin and Ethereum.
IOTA is a promising cryptocurrency that has been designed for transactions between connected devices in an IoT environment. This technology is different from blockchain due to its use of a directed acyclic graph (DAG) as its transaction ledger.
It enables machines to make transactions, and there is currently no fee charged on transactions, a huge advantage over competitors. The number of active addresses on its network has been increasing steadily since June 2016, and it has reached over 800,000 addresses by August 2017.
There have also been several developments with respect to IOTA’s partnerships with large companies such as Microsoft, Fujitsu, Bosch, and others. As such, IOTA looks like a good investment option going forward.
At present, you can purchase and store IOTA in a number of exchanges, including Bitfinex, Binance, and OKEx. Since November 2017, IOTA has been in collaboration with Microsoft on its worldwide business development strategy.
It is also set to be used as an official cryptocurrency in Taipei, the capital of Taiwan, where it is currently in the testing phase. That means more trading platforms will adopt IOTA transactions, thereby making it easier for everyday investors to buy and sell IOTA.
And if you want to hold your investment long-term, storing your coins offline in a hardware wallet like Trezor or Ledger Nano S is recommended. The devices are easy to use and keep your currency completely safe from hackers.
Unlike blockchain networks, which use linear ledgers that require computationally heavy mining for transaction verification, Tangle is a non-linear network. In order to send transactions on Tangle, users must validate two other transactions.
This process incentivizes more participation in validating transactions and removes dedicated miners from the equation(since their role becomes redundant). The result is a lightweight, scalable network with costless microtransactions.
One of its most innovative features is how it settles transactions. While most blockchains rely on either PoW or PoS algorithms, Tangle uses an alternative method called snapshotting to settle transactions instantly.
Every time a new transaction comes into Tangle, every unconfirmed transaction is validated against previous ones; if there’s no conflict, then that new transaction simply tips off those two previous ones and gets settled.
If there are conflicts (i.e., if someone tries to double spend), then all conflicting transactions are rolled back entirely. As there’s no need for proof of work or stake, everyone can participate in validation.
Since anyone can participate, you don’t have to worry about power centralization—and since there are no fees, you don’t have to worry about censorship.
With all the developments in crypto, we inevitably ask ourselves: are we heading toward a machine economy? There are new entrants in the crypto market every day, which explains why the market value is expected to hit $5 billion by 2030.
With that being said, it is a good time to invest in cryptocurrency, especially IOTA. Many experts have predicted that it will become a mainstream form of currency in future decades since it’s decentralized, digital, and secure.