IOTA is a distributed ledger technology that is used to record and execute transitions between devices in the Internet of Things (IoT) ecosystem. IOTA hopes to become the de facto standard for conducting transactions on devices. So by utilizing the platform, users can exchange value and data between humans and machines. The founders of IOTA hope to make the ledger a “public permission-less backbone for the Internet of Things that enables interoperability between multiple devices.” So, this would mean that it will enable transactions between devices that have a connection, and anyone will have access to it. Moreover, the founders also hope to develop a platform where no blocks, no miners, and requires no transaction fees. The founders of the platform hope to utilize this platform to enable economic relationships between machines while also bridging the human and machine economies.
A Brief History of IOTA
The founding of IOTA was by Sergey Ivancheglo, Serguei Popov, David Sonstebo, and Domink Schiener. The announcement of the platform was in October 2015 through a post told of a token sale via an online Bitcoin forum. The roots of the platform actually goes all the way back to the Jinn project. The Jinn project aimed to create a low-cost and energy-efficient ternay hardware. Furthermore, the company began introducing their cryptocurrency, mIOTA which was able to reach a peak evaluation of $14.5 billion with the help of Bitcoin mania during 2016.
What Problem does IOTA Solve?
IOTA hopes to solve multiple problems that have an impact cryptocurrencies built on standard blockchains. These include problems of centralization of mining, low network speeds, scalability, and increasing number of transactions a blockchain can process.
IOTA can solve these problems since it would not require a backlog of transactions. So on Bitcoin’s blockchain, there is a backlog of transactions because of the small block sizes and difficulty of puzzles that miners need to solve.
How does IOTA solve the problem?
To solve the problems that the IOTA team saw with Bitcoin, the team set out to create a new data structure known as Tangle. This system is a way to organize numeric representations in a computer’s memory system. Tangle is a Directed Acyclic Graph (DAG), which is a system of nodes that are not sequential. In this system, everyone plays an equal role. So if a transaction occurs in the network, the issuer must ensure and validate the previous and random transactions. This is done via cryptographic algorithms behind the scenes.
The Benefits of Tangle:
- Highly Scalable
- Low Resource Requirements
- Zero-Fee Transactions
- Fast Transactions
- Optional Quantum Robustness
With the help of Tangle, it allows the platform to achieve micro transactions and speed. Micro transactions refer to transactions that cost fractions of cents. This helps to solve the issue that many Bitcoin users face with high transaction fees. Furthermore, the cool thing about IOTA is that with more people using the platform, it will allow the transactions to be faster. This alleviates the issue that many cryptocurrencies face with long transaction times.
How to Use IOTA?
Let’s dive into some real-world applications where that currently use IOTA:
Ruuvio is an advance open-source sensor and beacon platform. The platform has many security and logistic uses. The monitoring of environmental and cold chains are the most notable of the platform. These monitorings are extremely crucial to the monitoring of a product’s temperature or even its whereabouts. So you can think of this as fresh produce like delivering milk and needing to stay within a certain temperature for it to stay fresh. The technology is waterproof and can last up to several years. With the help of IOTA’s technology, it can help encrypt and mask the data that the product receives. Furthermore, this helps create many use cases for ruuvio’s technology in the future making definitely something to look out for.
As you can see, IOTA technology is quite adaptable and can use i in a wide range of industries. It will be interesting to see the continuous development of the platform.
IOTA vs BTC:
IOTA can be seen as an upgrade of the Bitcoin platform. The founders of the IOTA platform began with the hopes of creating a more decentralized and faster platform. However, IOTA doesn’t live up to the hype and the promises that they claim, it certainly does have a lot of space for improvement. However, as of right now, Bitcoin still remains the de facto standard for cryptocurrencies and will still remain in its place in the crypto space.
What is mIOTA?
mIOTA is the native cryptocurrency to IOTA’s network. The founding of mIOTA dates back in 2015 when raising $500,000 via a crowdfund. The currency is used to calculate transactions in the network. Unlike Bitcoin, they pre mine mIOTA, and the consensus of the transactions occurs differently in comparison to the Blockchain. The company envisions the token will create fairly with no locked tokens, no early corporate investors, and no tokens given to its founders. The IOTA Foundation behind the mIOTA token is a non-profit organization. So they hope that this feature gives the token more trust and value and further envisions the creation of an open-source protocol for the world. Furthermore as mentioned before, there are no miners or stakers in this system. Above all this allows data to be transacted without any fees which is a feature that few digital assets can achieve.
How can you buy mIOTA?
Like many other cryptocurrencies, IOTA can be bought via large exchanges. The currency can also be bought via OTC portals. So if you have an interest in purchasing mIOTA, let us know!
How can You Store mIOTA?
You can store mIOTA by generating a strong seed. Once they generate a strong seed, they can save that information on cold or hard storage. Check out this article by IOTA to ensure the safety of your mIOTA. https://blog.iota.org/the-secret-to-security-is-secrecy-d32b5b7f25ef
The Future of IOTA:
While IOTA doesn’t currently live up to the hype that we wish for, it definitely reinforces the innovative nature of the crypto industry. The IOTA platform still has many areas of improvement. However, the technology is definitely something to use in the future among other industries. So IOTA proves that the crypto industry as a whole is moving on the right track.