IOTA is a cryptocurrency designed for the Internet of Things, and it’s a new crypto technology that facilitates transactions between devices on the Internet of Things (IoT). IOTA is a revolutionary new, next-generation public distributed ledger that utilises a novel invention, called a “Tangle”, at its core.
What is IOTA?
IOTA is a groundbreaking new open-source distributed ledger that does not use a blockchain. Its innovative new quantum-proof protocol, known as the Tangle, gives rise to unique new features like zero fees, infinite scalability, fast transactions, secure data transfer and many others. The Tangle is a new data structure based on a Directed Acyclic Graph. As such it has no Blocks, no Chain and also no Miners. Because of this radical new architecture, things in IOTA work quite differently compared to other Blockchains.
The IOTA has launched on 11 June 2016 by David Sønstebø, Sergey Ivancheglo, Dominik Schiener, and Dr Serguei Popov. As of December 2017, the market capitalisation of IOTA is $9 billion, making it the 8th largest cryptocurrency in circulation. It has a current supply of 2,779,530,283,277,761and volume of $193,849,000. The price of IOTA today is $3.60. The market cap value has marked $10,018,733,519.
IOTA wants to upset that paradigm. The team believes they’ve found the next generation of cryptocurrency; a faster, cheaper, and more secure way of managing the trust. They call it a Tangle. This is what it looks like.
Each of those white dots represents a transaction. For a trade to be approved, it needs to verify two other transactions. The green lines represent verifications.
IOTA – Interesting Features
The most important features of IOTA is that its Zero Fees. The user and validator are no longer decoupled entities in IOTA. This removes the need to waste vast quantities of energy on mining or risk inevitable validation centralisation. So the newly minted units of currency and transaction fees do not need to be extracted from the system to pay validation fees.
The result is that IOTA has zero costs. The other feature is its scalability. Since each transaction requires the sender to verify two separate transactions on the Tangle, more transactions can be confirmed as the number of users sending them increases. This means that IOTA scales proportionally to the number of transactions ad infinitum.
Transaction times are inversely proportional to the number of transactions on the Tangle. The more transactions, the more quickly each purchase will be confirmed. All of the IOTA that will ever exist were created in the genesis block. The amount will never increase or decrease. IOTA uses hash-based signatures instead of elliptic curve cryptography (ECC). The other feature that regarding IOTA are immutable ledger, sharding/snapshotting/swarming, modularity, extremely lightweight, secure data transfer, decentralised, and private.
IOTA – Wallets
Full Node (GUI): This is an IRI (IOTA Reference Implementation) running and being accessed locally via a GUI. Any full node needs to be connected to neighbours via a static IP to function.
Headless Node: A full node was running in your local console. You can access it via a simple UI called Nostalgia in your browser. It has the same requirements as a GUI full node but has the advantage that you can open multiple Seeds (Accounts) at the same time.
Light Wallet (GUI): A local interface that accesses a full node (IOTA Node) in a different environment.
, a Crypto Enthusiast, opinioned that to wait for the new UCL wallet which should come out either at the end of October or in early November. This version will be more user-friendly than the current wallet and introduce several new features. No hardware wallets are currently available for IOTA – neither Ledger Nano nor Trezor is planning to launch it soon.
How To Buy IOTA?
You can buy Iota by using something called a crypto exchange – the same as if you were purchasing other cryptocurrencies.The main difference with Iota is that it is not available to buy directly with traditional cash – you can only trade it for another cryptocurrency.That means if you want to get your hands on some Iota, you first need to acquire something like Bitcoin or Ethereum.Some of the most popular options for buying these are Coinbase, Blockchain.info and Xapo.You can then trade them on certain crypto exchanges for IOTA.
There are currently only two exchanges with a significant trade volume of Iota – Bitfinex and Binance. Bitfinex is based in Hong Kong and is better for non-US customers. But anyone thinking of investing in Iota or any other cryptocurrencies should be very careful. Their values are volatile, with the ability to plummet as quickly as they shoot up. And investors are frequently targeted by hackers and other criminals who seek to steal their crypto-cash online.
IOTA Price Chart and Coin Market Cap
IOTA is pre-mined and doesn’t need dedicated miners to issue new coins or validate transactions and therefore doesn’t need as much energy as Bitcoin mining. But it also uses a proof of work-concept that is comparable to Hashcash to prevent spamming the network. Unlike cryptos that use a blockchain, where miners try to beat each other in adding new blocks, IOTA’s Tangle fuses “miners” and “users”. That means that the block rewards paid to miners will eventually mostly consist of users’ transaction fees, which adds up to a zero-sum game.
IOTA Price Prediction 2018
IOTA is the hottest cryptocurrency right now and conquered the fourth place regarding market capitalisation onInternet of Things (IoT) holds one of the most significant potentials for human life change. It might become the fastest growing market in next couple years, but the more important thing is that the development in related areas is interconnecting.