What Is IOTA?
IOTA is a blockchain solution platform and a cryptocurrency which is formed as the Internet of Things. It is different from any other cryptocoin or blockchain project as it does not make use of the traditional blockchain system. It ensures the application of smart contracts with its ability to become the transactional fuel. This is done with the help of machines which are combined into one network. With the Market Cap of $11B, it is the seventh largest cryptocurrency present in the crypto market.
How does IOTA work?
IOTA does not use blockchain technology which makes it different from other popular coins such as Ethereum or Bitcoin. Tangle log is used by the platform based on the acyclic graph which is DAG directed. In case of Ethereum or Bitcoin, blocks are used to keep a record of the transaction which is performed by the user but in case of IOTA Tangle, no such blocks are used.
7 Features of IOTA
Smart contracts are effectively utilized and managed with the help of IOTA. The computing power of the smart devices can be shared in real time in any part of the world with the help of “economy of things”. Some other features that IOTA offers to its users include:-
- Micro -Transactions – It helps in executing small transactions with the help of its tangle architecture. As a result of this feature new opportunities have popped up for companies and allowed them to do business with fewer transaction fees.
- Data Transfer – Data is transferred with the help of the Tangle ledge which is the core feature. With the help of IOTA, authenticated and secure channels are established between the devices. The data is fully tamper-proof and authenticated via tangle. This marks no space for the attackers to access data.
- Voting – It is very easy to securely vote online. It uses internet of things which allows the transmission of data for e-Governance organizations secured and safe.
- Masked Messaging – Data is exchanged via Tangle with the help of masked messaging (MAM) in an encrypted and authenticated manner. In simple terms, we can say that with the help of your smart devices you can transfer sensitive and valuable data with a quantum proof security. Just like radio, anyone can share any information with a number of parties. In order to receive the broadcasted data, one just needs to tune into the specific frequency.
- Everything as a Service – It convert anything into a service. You can lease anything in real time which has a chip inside it. For examples drones and tools. Apart from this, computational power, computer storage, Wi-Fi bandwidth, etc can also be leased.
- Zero Transaction Fees – It does not charge any transaction fees from their users.
- No Miners Involved – It is a decentralized cryptocurrency as there are no miners involved in the network. Those making the transactions within the network actively participate in the consensus.
How to Buy IOTA
Similar to other cryptocurrencies, it can be purchased either in Dollars or in exchange for other popular cryptocurrencies such as Bitcoin or Ethereum. As there are plethora’s of crypto exchange platform already available in the market, the best option is to buy Ethereum or Bitcoin on the site like Bitfinex or Coinbase and convert it into the IOTA currency.
- IOTA provides a possibility of allowing microtransactions along with the operations at high speed. This is possible only with the help of Tangle.
- IOTA is different from any other regular blockchain which makes it a strong community as the traders have full faith in them.
Disadvantages of IOTA
- Each transaction of IOTA demands a fee even no tokens are needed in the completion of the transaction among the distributed ledger. Computation power has to be spent by the user to complete the transaction.
- For future investment it is not a good option to consider as for IOT, IOTA is not a currency.
IOTA is the first ever cryptocurrency which uses the Internet of Things (IoT). This boosts the ability of the machines to trade services, goods, and information for income. This is an interesting angle to use a transaction free network.
IOTA is a very interesting project which has an infinite limit in the market to showcase its potential. IOT will be used in every possible thing from smart guns to smart cars to smoothen the needs of the user. As the technology is scalable and fees less, it makes it a promising project to be adopted by a large number of traders.