An overview of IOTA
Iota is a decentralized distributed ledger built on Tangle, a directed acyclic graph (DAG) network. The protocol opens up for machine interoperability in a time where the Internet of Things (IoT) is beginning to take over human workload. Users can make transactions at no fee, using a unique validation and consensus different from the existing blockchain technology.
What is IOTA?
IOTA is a novel open-source distributed ledger technology (DLT) built on the foundation of a directed acyclic graph (DAG) known as Tangle. The Tangle is a multidimensional blockchain that works differently from existing blockchains such as Bitcoin and Ethereum. Information and value exchange on the platform is recorded in a secure, decentralized and tamper-proof manner. IOTA enables feeless transactions between machines and humans, in a world where the Internet of Things (IoT) is at the forefront of development and expansion of frontiers. It aims to lead the digital revolution of the next generation which is termed “Internet of Everything.”
History of IOTA
IOTA was co-founded by David Sonstebo, Dominik Schiener, Dr. Serguei Popov, and Serge Ivancheglo in 2015. It was created as a specialized peer-to-peer distributed ledger. Its primary objective was (and still is) to democratize and power the Internet of Things (IoT).
What is Tangle?
Tangle is a novel Distributed Ledger Technology (DLT) built specifically for IOTA, and is based on a Directed Acyclic Graph (DAG). To a certain extent, we could say that Tangle is not really a blockchain in the way it operates; it does the same and arguably more than some of the existing blockchain technologies. The workings of Tangle is somewhat similar to the blockchain, Its database is composed of a distributed ledger, a peer-to-peer (P2P) system, and relies on validation and consensus to complete transactions.
Despite these similarities with the blockchain, it uses a Decentralized Acyclic Graph (DAG) structure to achieve consensus. DAGs are a new mathematical concept that have a truly exciting application when applied to existing blockchain technologies. Transactions on IOTA don’t follow the pattern of the blockchain. Rather, a single transaction becomes valid when it references two past transactions. Multiple devices with individual transactions connect with each other without the need for sequential blocks as is in blockchain. These connected transactions are like a tangled web, because they move together in one direction unlike blockchain transactions that move in a single line. Due to the nature of the DAG, IOTA transactions are confirmed quicker than on blockchains where transactions wait a while for miners. Also, IOTA transactions are run at no fee, making the network much more scalable than most blockchain protocols.
This is not to say that tangle's DLT entirely solves the problems of security and scalability, Infact new Blockchains like Aptos, a layer 1 Blockchain that uses the Move programming language. Looks set into becoming the most secure and scalable Blockchain solution with it's Speed (TPS) of 130,000-160,000 TPS and <1 second Time to finality.
Who is IOTA For?
IOTA is targeting a major market of the global economy, in a world where there is high demand for devices that can connect to the internet. The use of the Internet of Things (IoT) devices in everyday human activity is on the increase. Humans in a quest to ease the burden of physical work and increasingly developing machine facilities that work when they connect to the internet. Devices such as the smart refrigerator, smart watches, surveillance cameras, and even cars are connected to the internet to function through a cellular network or Wi-Fi. In the IoT ecosystem, devices connected to the internet can transact and exchange payment information and other data with other devices daily.
The IOTA protocol is designed to enable transactions and payments between machines connected to the internet. Prior to this development, providing a platform to process transactions and payments among machines has been difficult. IOTA provides these connected devices a way to communicate and interact with each other, sharing information and data that could not formerly be obtained.
The founders of IOTA have created the Tangle structure to solve the myriads of problems facing traditional protocols built on standard blockchain technology. Gone are the noticeable problems of the blockchain: the centralization of mining activities, scalability, slow network speeds, and high transaction costs. Developers now have a way out of blockchain technology problems, as they seek its utilities like DApps, and Cross-chain activities.
For the ordinary cryptocurrency investors, especially the retail investor, a solution to these problems is essential to maximizing and scaling the use of blockchain and its interaction with real-world utilities. In addition, businesses and government agencies can also leverage on IOTA to run transactions across different machines.
For instance, in January 2018 Taiwan capital city, Taipei, entered into a deal with IOTA to build a smart city project. The project was to create digital citizen cards, healthcare, inter-city data exchange amongst others. The project aims to use the Tangle protocol to build IDs that will be decentralized. The introduction would help curb voter's fraud, identity theft, and provide medical records amongst other government related facilities. In order to provide open-source solutions and offer thought leadership in important IOTA use case areas, IOTA collaborates with various organizations from the corporate, government, and academic sectors. Some of these organizations include: Jaguar, Dell technologies, Walt.id, Engie lab, Edag, OMG, amongst many others.
How is IOTA Doing?
Given that IOTA aims to be the background upon which every transaction on Machine economy will be processed, it is essential we take a deep dive on how it has fared ever since.
IOTA (MIOTA) Market Capitalization, Price And Volume
According to Coinmarketcap, IOTA (MIOTA) has a total circulating supply of 2.78B MIOTA, and trades at $0.2533 presently. It has a 24 hour trading volume of $10,220,318. At a market rank of number 63, IOTA has a market capitalization that stands at $706,307,236.
On Dec 19, 2017, MIOTA hit an all time high (ATH) of $5.25, which is a far cry from its current price today. One major cause of the slump in price is a result of the dump in price of Bitcoin. The lowest price MIOTA has traded since its launch in 2015 is $0.07962 on Mar 13, 2020.
Where Can Investors Buy IOTA?
If you want to purchase IOTA at its current market price, it is recommended you use a top exchange for transactions. Some of the top exchanges to get IOTA include: OKX, XT.COM, Binance, Bybit, BingX, amongst others.
How does IOTA stand out?
- The IOTA protocol's native currency, MIOTA, is deflationary with a fixed maximum supply. Given that the supply of the coins can’t be increased, it is beneficial for long term value holders
- The Tangle technology that IOTA is built upon makes it scalable as more transactions can run on the network, theoretically, the system can verify an unlimited number of transactions per second.
- Users can engage in transactions at no fee on the novel innovative technology. Tangle is prepared to provide machine-to-machine transfer of data and value and micropayments on the Internet of Things (IoT).
Having gone through all the unique features which IOTA presents, it is in order to call it the "Blockchain of the internet of things". IOTA brings a new dimension to decentralized public ledgers with the introduction of Tangle. Transactions on this technology are scalable, feeless and don’t require miners before transactions are validated. Thereby creating a human-machine synergy.
Pontem is a product development studio working toward global financial inclusion powered by blockchains. We are partnered with Aptos, to build foundational dApps and other infrastructure which enable adoption of their L1, such as development tooling, EVMs, AMMs, and more.
Pontem recently released a wallet that supports both volatile and stable asset pairs, as well as the first DEX.
Move, Aptos' native language for smart contracts, allows for safe data storage and multi chain development, amongst other amazing features.
To stay updated, be sure to follow Pontem on Twitter, subscribe on Medium, and connect with us on Telegram.