Beginner’s Guide to IOTA Blockchain

Blockchain is the most frequently occurring term in recent discussions about technology. Many believe that blockchain has the potential to transform our digital experiences and create a new phase of the internet. One of the notable additions to the blockchain and crypto space that has been gaining a lot of attention is the IOTA blockchain. 

The most interesting thing about IOTA crypto is the use of a directed acyclic graph (DAG) known as Tangle. It is different from the conventional chain-like pattern visible in blockchain networks. Are you curious to learn more about the IOTA blockchain? Let us learn more about the IOTA blockchain and its special features in this post.

Understanding the Identity of IOTA

The first thing that you must learn about IOTA is its identity that makes it special. IOTA was created in 2015 as a public blockchain that allowed developers, businesses and governments to create innovative distributed ledger technology projects. You might also have special questions on your mind like “What blockchain does IOTA run on?” or questions about its distinctive features. IOTA blockchain runs with a DAG architecture that enables peer-to-peer transactions without the straight chain pattern.

The Tangle DAG that underlines the architecture of IOTA blockchain supports frictionless data and value transfer. As compared to other blockchain protocols, Tangle supports the addition of transactions in parallel, thereby reducing resource requirements. It is also important to remember that IOTA does not depend on miners because in the Tangle DAG, users verifying the transactions are the ones making the transactions. 

Explore the Special Features of IOTA

You can find out why IOTA blockchain is special by learning about its unique features. The most notable feature in an IOTA blockchain guide is the assurance of security, scalability and ease of use. IOTA blockchain provides the assurance of seamless application interactions alongside safeguarding users from intermediaries. The power of scalability empowers IOTA to manage massive volumes of transactions without breaking a sweat.

IOTA outperforms itself in scalability with the support for unrestricted throughput. The DAG blockchain can enable parallel transaction processing along with support for layer-2 EVM chains that create independent digital economies that work with each other. Another distinctive trait of IOTA that makes it unique is the multi-VM vision. IOTA leverages a flexible virtual machine architecture that enables seamless interactions across different networks. 

Why is IOTA Useful for the Future?

The introduction of new blockchain protocols like IOTA creates doubts regarding its necessity when there are many other well-established protocols. It is the first internet-scale programmable blockchain protocol that offers unique value propositions. The following benefits of IOTA blockchain prove why it is a big thing for the future of blockchain and Web3. 

• Move Programming Language

The discussions about IOTA invite attention to the possibilities of IOTA blockchain mining as an integral part of its operations. On the contrary, it follows a completely unique design with the Move programming language. It aims to address issues such as spoofed token approvals, reentrancy vulnerabilities, and poison tokens. The primary emphasis of IOTA blockchain on expression and safety ensures better accessibility for web3 developers. It ensures that developers don’t have to depend on understanding of the intricacies associated with the underlying infrastructure.

• Tailored for the Web3 Space

Another distinct trait of IOTA blockchain that makes it different from other protocols is the design for web3. By improving accessibility as a smart contract platform, IOTA can allow developers to come up with innovative Web3 user experiences. IOTA also provides different tools to developers that help them leverage the full potential of the blockchain. It is important to note how the IOTA Development Kit or SDK helps developers in creating web3 solutions without any restrictions.

• Scalability 

Apart from special features such as the IOTA blockchain wallet, the most appealing aspect of IOTA is the support for scalability. It supports horizontal scalability to meet with the emerging demands of web3 applications. The network capacity increases proportionally to the rise in processing power of IOTA validators. As the network capacity increases, the IOTA blockchain can reduce gas fees even in the times of peak network traffic. The advantage of scalability is a formidable improvement over other blockchain networks that present rigid bottlenecks.

• Support for On-Chain Assets

The next crucial highlight of IOTA that separates it from the crowd is the support for on-chain assets. With rich on-chain assets, you will find new applications and economies on IOTA that run for specific utilities without depending on artificial scarcity. For example, developers can introduce dynamic NFTs that offer support for upgrading, bundling and grouping according to applications. The unique capability helps in crafting better in-game economies with NFT behavior reflecting completely on-chain.

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What are the Focus Areas of IOTA Blockchain?

Any IOTA blockchain guide will be incomplete without mentioning the focus areas that it serves. IOTA plays a major role in driving the adoption of different innovative technologies across various industries. The blockchain empowers businesses with the advantages of better transparency, efficiency, and security. With these unique traits, IOTA can ensure a more decentralized and connected future. Take a look at the following focus areas addressed by the IOTA blockchain.

• Real-world asset tokenization is possible on IOTA with efficient asset management, secure verification, and cost-effective transactions.
• Digital identity solutions on IOTA provide a universal trust layer that allows secure and verifiable transactions between different applications.       
• IOTA also supports efficient trade and supply chain management by supporting transparency and inclusivity without relying on data silos. 
• Decentralized Finance gets an edge with IOTA that offers a mainnet based on Move with better security, developer-friendly tools and scalability. The streamlined platform offers the resources required to craft innovative DeFi products without reducing sustainability or performance. 
• Circular economy is another prominent focus area of IOTA blockchain that encourages sustainable innovation. IOTA empowers traceability, resource management and transparency that boost circular economies. The inventive blockchain protocol offers digital tools that can streamline the management of products, origins and identities. 

Final Thoughts 

The special features of IOTA crypto validate its identity as an innovative blockchain. It does not use the traditional blockchain architecture in which blocks are linked in a straight chain. On the contrary, IOTA leverages the DAG or directed acyclic graph architecture without relying on mining. IOTA supports parallel processing and offers the tools required to develop smart contracts for innovative Web3 apps. Learn more about the IOTA blockchain with a detailed guide on its architecture and technical details now.

*Disclaimer: The article should not be taken as, and is not intended to provide any investment advice. Claims made in this article do not constitute investment advice and should not be taken as such. 101 Blockchains shall not be responsible for any loss sustained by any person who relies on this article. Do your own research!