IOTA is a new open source new distributed ledger that does not use a blockchain. Its innovative new quantum secure protocol, known as Tangle, spawns unique new features such as zero fees, infinite scalability, fast transactions, secure data transfers and many more. Initially, IOTA is focused on serving as the backbone of Internet broadcasting (IoT).
FEATURES OF THE IOTA CRYPTOCURRENCY
IOTA is an open source cryptocurrency, DLT (Distributed Ledger) based on DAG (Directed Acyclic Graph), designed to securely and efficiently transfer data and payments without fees between devices on the Internet of Things. The IOTA project was founded in 2015 by David Sanstebø, Sergei Ivancheglo, Dominik Shiner and Ph.D. in mathematics Sergei Popov.
The purpose of its development was the revision and development of blockchain technology to ensure the applicability of cryptocurrency in the Internet of Things. IOTA transactions are free of charge regardless of their size, transaction confirmation time is short, the number of simultaneously processed transactions is unlimited, and the system itself is easily scalable. IOTA is controlled by the non-profit IOTA Foundation. In November 2017, the foundation opened a data market using IOTA technology, in which many large corporations and research groups participated.
Zero contributions
To send an IOTA transaction, the user's device simply needs to confirm two other transactions on the Tangle (network). To validate these two transactions, the device performs a low proof of work, which is essentially just a series of math problems. These math problems can be performed by almost any modern device, including laptops and telephones.
User and validator (miner, stacker, etc.) are no longer separated by objects in the register. This eliminates the need to spend large amounts of energy in mining or compromise the inevitable centralization of validation. Perhaps more importantly, because Tangle eliminates the requirements of miners / staxers, etc., New minted currency units and transaction fees do not need to be retrieved from the system to pay for validation. As a result, IOTA has zero fees.
Proof of work at IOTA cannot be compared to what is used in traditional blockchains. IOTA's Proof of Work is directly comparable to Hashcash, and it serves two purposes: preventing spam and preventing Sybil attacks. The proof of work in the register can even be transferred from small lightweight devices to another more capable of handling the computational load.
Infinitely scalable
Since each transaction requires the sender to verify the other two transactions on the Tangle, more transactions can be confirmed as the number of users submitting them increases. This means that IOTA scales in proportion to the number of transactions to infinity. This graph depicts register scalability.
Fast transactions
Transaction time is inversely proportional to the number of transactions on the Tangle. The more transactions, the faster each transaction will be confirmed. As IOTA approaches a critical mass of adoption, transaction times will approach network propagation times.
Fixed money supply
All IOTA that has ever existed was created in the genesis block. The amount will never increase or decrease. The total money supply 2777 530 283 277 761 is optimized to simplify the use of ternary calculations and notation using SI units. ((3 ^ 33-1) / 2) = 2.779 × 10 ~ 15
Quantum proof
IOTA uses hash signatures instead of elliptic curve cryptography (ECC). Not only are hash-based signatures much faster than ECC, they also greatly simplify the signing and verification process and reduce the overall complexity of the Tangle protocol.
HOW IS IOTA DESIGNED
IOTA uses Tangle, which is a software protocol that is fundamentally different from the blockchain protocol. The brilliance of the Tangle is that transactions are processed in parallel. Tangle differs from blockchain in two main ways:
1) The register can achieve high transaction throughput by parallelizing validation. As Tangle grows with more transactions, IOTA becomes faster and safer when transactional completeness is faster as the network's critical mass approaches.
2) The way to reach consensus in the blockchain is through a rigorous mechanism that requires several parties to "swing" against each other, trying to add the next block and receive a block reward. Since "miners" and "users" are decoupled entities, blocking rewards paid to miners will ultimately mainly consist of user transaction fees. In Tangle, miners and users are no longer separate.
For a transaction to be committed on the blockchain, a certain arbitrary time interval must elapse for the block to be created. Tangle allows for asynchronous computation, which means that there are no external arbitrary timing constraints at the time of transaction completion.
Tangle is programmed in triple order, which is a departure from traditional binary code. Ternar is much more efficient than binary and provides some significant functionality improvements. Tangle can be run on binary or ternary systems.
You are probably used to hearing about Bitcoin scalability issues and long confirmation times due to the growing user base. In IOTA, the opposite will be true. In fact, confirmation times will take the longest when the network is very small, and they will approach zero as the user base grows. Along these same lines, as the number of transactions in the register increases, the Tangle's ability to process more transactions increases. This is a completely new concept that will take some getting used to. The notion that the Tangle does not function optimally until critical mass adoption is important to understand.
Complete IOTA Review
IOTA has a good idea that looks to the future, unique features of the project, a very high level of security, infinite scalability, and the absence of any transaction fees.
HISTORY OF IOTA CRYPTOCURRENCY
David Sonstebo, Sergey Ivancheglo, Dominik Shiner and Dr. Sergey Popov founded IOTA in 2015. Sergey Popov, candidate of technical sciences. in mathematics, he outlined the mathematics necessary for the Tangle, which was then written into code by the programmers of the geeks Sergei Ivancheglo and Dominik Shiner. The project is led by David Sonstebø, an expert in business and technology. This group has been active in the cryptocurrency space for years, all of which have impressive resumes and notable past successes.
In December 2014, IOTA placed the foldsal, at which time the entire money supply was distributed to the participants in the foldsal. The event attracted 1,337 bitcoins for the development of the project. There was no bonus, instamine or otherwise. To stimulate the co-founders and a growing development group, the IOTA community has come together to donate a significant amount of resources to create the IOTA Foundation. The IOTA Foundation is a “gemeinnützige Stiftung” (ie, Non-Profit Foundation) based in Germany. In addition to its initial funding, the Foundation is eligible to receive support from government grants and corporate contributions (similar to the Linux Foundation).
In its continuous pursuit of excellence, the IOTA community subsequently funded the Big Deal through donations. This deal would help establish numerous large corporate IoT interactions, most of which have yet to be publicly disclosed due to legal agreements. As if that were not enough, the community has once again demonstrated its commitment to creating an Investors Club, with a focus on funding community-driven projects and the organic and sustainable development of the ecosystem. The actions of the registry community confirm continued commitment and confidence in the long-term success of the project. He remains extremely generous with his contributions to the ecosystem.
IOTA entered beta testing in the summer of 2016.
PROSPECTS FOR IOTA CRYPTOCURRENCIES
The following can be said about the IOTA cryptocurrency - this project will continue to develop in the future, attracting large investors to its society.
Many cryptanalysts call IOTA a promising project that has its own unique technology Tangle. This system makes the MIOTA coin one of the few in the entire digital market that does not use the Blockchain system. However, this does not harm the company and the spread of the IOTA cryptocurrency in the least. but only helps her. After all, Trangle is complete decentralization and security. High speed of transactions and, most importantly, zero commission!
In general, the IOTA payment system, which was created specifically for the Internet of Things, will be in great demand in the near future, because, according to all forecasts, the number of smart devices will reach 29 billion by 2022. And then IOTA will be widely used as one of the main means of payment in this area.
So far, the MIOTA cryptocurrency is worth around $ 1 and can be safely purchased on such well-known exchanges as Binance or Bitfinex. But soon, when smart technologies begin to be introduced into every area of our life, its price will grow significantly and can reach $ 5. And in a few years, the price of one coin may be over $ 10.