What is IOTA?
IOTA was launched in 2016. It is an application that uses new cryptocurrency technologies to create transactions between devices on the Internet of Things (IoT).
Hence its name: “Internet of Things Application”.
But its particularity is to get rid of transaction costs and scalability problems Blockchain technologies.
Indeed, she eliminated the Block and the chain!
Instead, to complete a transaction on IOTA, you only need to verify two previous transactions.
As a result, there is no central registry and minors must not feed the network.
To verify the transactions, IOTA has developed a consensus, through the network of connections between transactions, called Tangle, “entanglement”.
In this way, network devices will randomly check all transactions and establish consensus.
With this entanglement, computing power increases as the network grows.
All in all, this allows IOTA to promise free and fast transactions.
In addition, IOTA allows payments between machines as well as micro-payments.
Who is IOTA for?
The market IOTA is targeting is a major market in the global economy.
Indeed, companies create surveillance cameras for factories, shops, houses, railways, farms … .This represented in 2017 about 8.4 billion devices and future forecasts are huge.
That’s why IOTA’s goal is to be the platform for machine-to-machine transactions: M2M.
And for the Internet of Things to be more efficient, network devices must share resources in the best way.
Thus, the machines must be able to buy electricity, storage, bandwidth or even data. Then they must be able to sell them when they do not need them anymore.
This potentially represents dozens of transactions per second.
That’s why the IOTA designers thought that Blockchain technology was not suitable for IoT applications. Because their goal is to create this network so that billions of machines can use it.
What is Tangle?
It is to meet these aspirations of several billion devices on the network, that the creators of IOTA designed Tangle; a network where the processing power increases with the growth of the nodes on the network.
First, this device must check two transactions on the network before submitting a new transaction.
This verification is done by a small “proof-of-work” linking the transaction in the entanglement of the network.
Thus, each transaction will be linked to the two transactions that it has verified. Then she will be tied to future transactions that will have verified it.
There is no longer a central blockchain.
As a result, the cost of electricity is very low, since the computing power is only used to verify two transactions on the network.
In addition with a classic Blockchain, the network is distributed among minors. On IOTA, the network is distributed among all nodes of Tangle.
Finally, thanks to this design, there is no charge on IOTA.
Is IOTA the future?
All these new technologies that had to be put in place at the same time, can cast doubt on the future of IOTA.
Some have questioned its viability, claiming that there are inevitably flaws and weaknesses in its implementation.
It is also impossible to know if IOTA’s technology will work on a large scale and if it will resist attacks.
Others have also described security flaws in the Curl hash function that IOTA uses.
It is probably these questions that explain the instability of the IOTA token.
Yet each new technology goes through difficult stages. This was the case for Bitcoin and Ethereum.
However, it is very likely that over time the technology and implementation of IOTA will change. Potential investors should instead analyze the global architecture of IOTA and its development team, before deciding whether or not to invest in cryptocurrency.
The IOTA team
The creators of the IOTA Foundation who designed and implemented this project are David Sonstebo and Sergei Popov.
David Sonstebo is Norwegian and has experience in the field of Internet objects.
Sergei is a mathematician at the Moscow University.
The rest of the team has extensive experience in software and investment.
In addition, the team also includes people who have worked in the very first cryptocurrency projects since 2011.
Finally, there are also Harvard professors and high-level professors who guarantee the network.
The price of IOTA
IOTA is the seventh crypto currency in terms of capitalization, with $ 5.6 billion.
2017 saw the price of the IOTA token reach 4 USD. After the fall of all crypto currencies at the beginning of the year, it is trading today around 2 USD.
It should be noted that all the chips have been generated in one go and no chips will be generated in the future.
These chips were initially generated via a “genesis” address and it would appear that 50% of all these chips are owned by the owners of IOTA.
How to buy IOTA?
If you want to buy IOTA you will have to go through exchange platforms that support IOTA and that are: Bitfinex, Coinspot, Binance and Bit 520.
On many exchanges you will have to go through Bitcoin or Ethereum to be able to exchange them for IOTA.
If you want to store your IOTA on a cold wallet you can follow the instructions on their GitHub.
For that you will need to download Node JS, Electron Framework, or Web Package Manager or Boxer.
Giving machines the opportunity to exchange services, goods or information for revenue, using a toll-free network is very interesting.
The Tangle technology IOTA uses has a lot of potential.
If it succeeds, it could even become a technology that competes with the Blockchain for transactions.
In addition, its Internet of Things market is a market that will continue to grow.
However, this technology has not been sufficiently tested. But if it succeeds, it could be the next big breakthrough in cryptography, because it solves the big problems of Blockchain technology, especially the high cost of electricity.