What is IOTA?
IOTA is a cryptocurrency that is designed for Internet of Things (IoT). The technology facilities transactions between two devices that are connected via internet. With IoT, physical objects like home appliances, hospital devices, microchips, cars and other physical objects can collect and exchange data using embedded sensors. The IOTA cryptocurrency aims to become a universal method of payment for the future of transactions between IoT devices that take place on the IOTA network.
IOTA is fundamentally different from other cryptocurrencies as it does not use the traditional blockchain technology. Instead, the currency uses a new data structure called as Tangle that is based on a Directed Acyclic Graph (DAG) technology. In case of Bitcoin or Ripple, miners verify transactions using a blockchain whereas, with IOTA, two previous transactions are verified by users to make a transaction.
History of IOTA
IOTA was co-founded by Dominik Schiener and David Sønstebø in 2014 following which it was formed in 2015. The payment system that does not include blocks, chains and miners was created in 2017.
Features of IOTA
As mentioned before, IOTA works on DAG technology. The IOTA implementation of DAG is called Tangle. DAG Tangle approves two previous transactions in other IOTA wallets to make its own transaction valid. This procedure removing miners thereby making buying and selling fast and seamless.
Here are some of the important features of IOTA:
- Scalability: Increased network activity decreases transaction settlement times. IOTA is capable of doing up to 1500 transactions per second.
- Decentralization: OTA has no miners as the currency is already pre-mined. Every participant in the network that is making a transaction, actively participates in the consensus. As such, IOTA is more decentralized than any Blockchain.
- Zero Transaction Fees: IOTA has no transaction fees thanks to Tangle. In case of blockchain, the network is distributed among the miners while in case of the Tangle technology , the network is distributed among every participating node on the network.
Where to buy IOTA?
The market capitalisation of IOTA as of April 2018 is $4,434,573,795. As per CoinMarketCap.com, IOTA is available for trade on Binance, Bitfinex, Coinone, and others.
IOTA tokens can be stored in own IOTA wallet on Android in addition to Trinity as well as Nelium. The total supply of IOTA is (3^33 - 1) / 2 = 2,779,530,283,277,761 tokens. This value is optimized for ternary computation.
IOTA tokens cannot be mined as they are already pre-mined.
IOTA Price Trends
Risks associated with investing in IOTA
It is important to note that you should conduct detailed research before investing in cryptocurrencies as they are extremely volatile in nature. Investing in mutual funds instead is a safer option to multiply your hard earned cash.