Since 2008 when Satoshi launched Bitcoin, more than 100 cryptocurrencies are released every year. Within a very short time, people have come to learn that they no longer have to use fiat currencies because an alternative that is equally effective exist. In fact, cryptocurrencies are better because they are based on unique platforms that allow people to make payments, receive payments, and even earn from mining. Now, some cryptocurrencies are pushing blockchain technologies even further by extending to nonfinancial sectors. In this post, we take a comprehensive review of IOTA Cryptocurrency.
What is IOTA?
IOTA is one of the latest cryptocurrencies in the world that mainly targets machine-to-machine transactions. It is based on smart devices management with the underlying objective being to enhance sharing of resources and interoperability. Ultimately, IOTA will make it possible for companies to explore new business-to-business models through easy and direct access to most services traded conventional market at no fees and in real-time.
To put differently, IOTA will make it easy for all people to lease their devices computing power to other people/ businesses around the globe in real-time. IOTA was founded in 2014 by the IOTA Foundation team that included Sonstebo Sergey Ivancheglo, Sergey Popov, and Dominik Scheiner.
One unique thing about IOTA is that it goes beyond the standard model of blockchain common to other cryptocurrencies such as Bitcoin and Etherium. The main technology in IOTA is Tangle Ledger that focuses on the entire ecosystem as opposed to the blockchain alone.
How IOTA Works?
IOTA has become the first cryptocurrency to adopt a different platform away from the common blockchain model. In a traditional blockchain, transactions are put together to form a block that can be verified by miners. This means that with more transactions, there is more work for miners and higher transaction fees. However, every transaction in a tangle is a complete block. It can also verify itself. For this process to start and get completed, the user must begin by verifying two random transactions in the network.
The Cryptocurrency architecture is highly decentralized to a level that other blockchains have recently found very difficult to match. The ledger in IOTA allows all the devices in the system to trade exact amount of resources and at the same time store data from dataloggers and sensors securely.
Because the blockchain does not employ extended blockchains, the consensus is intrinsic. This means that the only cost involved is to simply verify other transactions. The idea behind this is creating a self-sustaining economy that is purely demand driven. It is because of this model that Tangle is considered to have zero cost transactions.
Main features of IOTA
The IOTA sandbox
This is a special feature for helping developers who want to work on new apps. It helps them with coding to facilitate faster apps development. Unlike in other cases, the IOTA sandbox does not require the developer to download anything. As an open source platform, it means that anyone with some background in web development can participate in making apps and deploying them on the platform.
Since establishment, IOTA has been emphasizing on small transactions in the Tangle architecture. This provides new business opportunities for companies and individuals by removing the prohibitive transfer fee that is greatly limiting in platforms.
This is a crucial feature that allows users to establish secure and authenticated channels between various smart devices. Note that every data transferred within the Tangle Framework is authenticated and, therefore, tamper-proof.
This is a unique feature that allows nodes exchange data in the IOTA Tangle framework in an authenticated and encrypted way. With this feature, your smart device will be enabled to transfer highly sensitive and valuable data with quantum-proof security. In the same way, a radio operates, all the parties in the platform can tune to that frequency to get the encrypted data.
Pros of using IOTA
- The main benefit of using IOTA is that there is no limit for coin scaling. Using Tangle has addressed the problem of scalability with zero cost.
- Because every transaction is a complete block in itself, mining is relatively easy compared to other blockchains.
- Though the Cryptocurrency is relatively new, it has demonstrated the tangle technology has a lot of potentials to become the leader in the crypto-world.
- IOTA is one of the simplest cryptocurrencies to join and start trading or making payments.
- IOTA has addressed the problem of scalability that has plagued other cryptocurrencies such as Ethereum in a great way. Using the Tangle technology, IOTA became the first permission-less distributed ledger to achieve very high scalability by making machine-to-machine payments possible.
Cons of IOTA
While the IOTA framework promises to be the game changer in the Cryptocurrency world, many users have argued that it is too ambitious. By focusing on very many objectives, IOTA could have set itself on a route to ultimate failure. This is compounded by the fact that it is one of the newest cryptocurrencies in the market. Because of the fast growing competition, many people want to look first look at the system and assess the stability of the Cryptocurrency.
Where to Buy and Sell IOTA in Australia?
Crypto Currency for Fun recommends buying IOTA at CoinSpot. CoinSpot is a multi cryptocurrency wallet with built-in trading features. Users can store many coins, including IOTA and they offer Instant Delivery or your coins right into your account.
IOTA Cryptocurrency is one of the latest technologies in the blockchain technologies. Its good performance in the last one year has demonstrated its great potential even to outdo other top Cryptocurrencies in the globe.