IOTA is a new transaction agreement and data transfer layer for the Internet of Things (IoT). Do we think you know what IoT is? It is based on a new distributed ledger on its own tangle network. This removes the flaws of blockchain designs and provides a new way to reach consensus in decentralized peer-to-peer systems.
Therefore, you need to know about the new and exciting cryptocurrency – IOTA. But you have no idea what it is or how it works? Okay, don’t worry, we will provide you details about the IOTA.
What is an IOTA then? Do you have an idea? No? Therefore, we will explain its basics, as well as explain how the technology works. We will explain everything in the simplest way possible, using real-world examples.
What Is IOTA cryptocurrency?
IOTA is abbreviated from the Internet of Things application. It facilitates the transaction of money on the Internet. They claim that “Tangle” is faster and more efficient than the typical blockchain used in cryptocurrency.
The blockchain relates to the block rather than the “Tangle” is related to the web. In blockchain-technology, blocks are adds in the chain after each successful transaction. But the “Tangle” transaction is carried out after confirmation of individuals online at IOTA. This is similar to Ripple cryptocurrency.
History of IOTA
It is created and announced in October 2015 by Sergey Ivancheglo, David Sontesbo, Serguei Popov and Dominik Schiener.
The main goal of this project is making a payment system on the Internet, much cheaper and easier as well as faster transactions in a few seconds. Finally, it has been launched on 11 June 2016.
After launching the IOTA, it has been managed by the IOTA Foundation. This is located in Germany.
Working of IOTA
It does not work on blockchain like Bitcoin, Litecoin, Dogecoin, and Ethuruem, etc. As you know it based on Tangle. This is also known as Acyclic Graph, in which all nodes are connected to two other nodes. See the below image for better understanding.
As we discuss before IOTA has no Blocks or chain means it does not work on blockchain, so there are no miners also. The main reason for this, it works on new technology. As a result, this is totally different from the Blockchain.
I know you are wondering how a transaction is verified and done if there are no miners. This is done with the help of consensus.
This means every participant in the network, who wants to make a transaction has to actively participate in the network’s consent by approving two previous transactions.
You will be shocked if you listen that, IOTA is totally free or no fees are applied on transactions. You did not give any transaction fees on this platform. This is a big advantage of IOAT networks. This is because as we discussed before everyone participates in the network by confirming previous transactions.
The main fee of IOTA is to use electricity for your device. The participant’s device needs to be online to confirm the transaction. So, the only fee is a small amount of electricity to verify the last two transactions from your device (computer).
Rather than this the today’s other payment methods unable to free of transaction fees. If we compare this to bitcoin than bitcoin take a very high transaction fee.
Pros & Cons of IOTA
Everything has some pros in nature, as well as they have also some cons. So, some points are given below:-
- No any transactions Fees
- Unlimited scaling
- Can process any data, not just financial transactions
- Hopes to achieve instant transactions
- Mining is not possible
- Mutual Contributions
- Quantum resistant
- No finished product yet
- Unclear when the project will be ready
- Has experienced lots of technical flaws and bugs
- Currently needing to use a centralized coordinator
- Many (including MIT) think it has really bad security
Features of IOTA
- It works based on the Peer-to-Peer
- It works on its own Technology “Tangle”
- Tangle provides free transactions and managed by the IOTA Foundations
- This is more secure because two transactions require for a single transaction.
- Payment is made if and only if the last two transactions are confirmed by the participant
Future of IOTA
As of November 2019, IOTA has a total market capitalization of $642,782,575 USD. The current IOTA tokens in circulation are about 2,779,530,283 MIOTA. As of the same time period, an individual token costs about $0.231256 USD. Furthermore, Currently, its maximum supply is 2,779,530,283 MIOTA.
Now it is rank in the 19th position of all the cryptocurrencies. IOTA (MIOTA) released its token through the ICO (Initial Coin offering) in 2015.
|Market Cap||Volume (24h)||Circulating Supply||Max Supply|
|2,779,530,283 MIOTA||2,779,530,283 MIOTA|
If you interested to Buy IOTA then read our Blog on How & Where to Buy IOTA Cryptocurrency
Finally, if you ask me about IOTA. I tell it is best and also has the potential to grow in the world. As we know this the best idea to fee-free transactions to anyone in the world.
Anyways, I think after reading this start to end you got a better understanding of what is IOTA. I hope to express better and in an easy way.
You have any quires about this topic then please leave a comment in the comment section.
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