Do you know about IOTA and IOTEX, the solutions brought by the interplay between Blockchain and IoT? Let’s find out the differences between these two – IOTA vs IOTEX.
The year 2020 introduced the world to an extremely lethal pandemic and, at the same time, spurred the growth of the crypto and blockchain space. Some of the earliest examples of cryptocurrencies, such as Bitcoin, were created in the form of digital currencies. On the other hand, the latest additions among cryptocurrencies have been tailored for addressing real-world problems.
The debate between IOTA vs IOTEX has become quite popular with the increased trading of digital assets. IOTA and IOTEX are examples of cryptocurrencies with applications in the real world. Both the coins are great examples of solving real-world problems in specific industries, specifically the IoT industry in this case.
IOTA is an old guard since 2017, and IOTEX explosively broke onto the screen in 2021. Going from 100mil market cap to hitting 2.5billion this November.
Interestingly, IOTA and IOTEX are important aspects of the blockchain IoT interplay. However, they have a few differences among them on the grounds of certain factors other than the fact that they are run by different companies. Both of them are also different in terms of the rules for guiding their networks.
Based on the difference between IOTA and IOTEX, investors have to find out the suitable crypto token from the IoT industry. The decision of choosing one alternative from IOTA or IOTEX is quite complicated, and you should rely on a detailed comparison of both of them. The following discussion offers you a detailed overview of an IOTEX vs IOTA comparison to find out the better alternative.
Growth of IoT and Blockchain Interplay
One of the foremost things you need to understand before diving into a detailed reflection on the IoT blockchain interplay. You could find different types of solutions, including NFTs, DeFi, and Play-to-Earn games evolving in the domain of blockchain. However, the most promising technological trend in recent times has been identified in the competition for connecting the Internet of Things or IoT. Currently only IOTEX has live working applications. IOTA networking is still currently on test net when it comes to live projects.
The example of autonomous vehicles is a clear example. While many would think that autonomous vehicles are all about vehicles driving on their own, the concept actually refers to a connected set of cars with single intelligence. All the cars running the same software could learn from each other. As a result, you can notice how the connected intelligence and a network provide a formidable instrument for combating the monopolies by big tech software companies.
Connecting the dots for blockchain IoT relationships might seem like another innovative exercise with technology. Surprisingly, the interplay between both of them has opened up new opportunities in the number of trillions of dollars. Most importantly, the early investors alongside supporters of the winning network in IOTA vs IOTEX debates. Investors with plans for a multi-year time horizon would definitely look up to an IoT platform as a vital portfolio addition. Therefore, a detailed comparison between IOTA and IOTEX can help you find a suitable choice for your investment portfolio.
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What is IOTA?
IOTA is the past leader of IoT Blockchain race, which you can also think of as a distributed ledger technology. In terms of market capitalization, the value of IOTA is almost $3.6 billion. Interestingly, it also successfully garnered a massive valuation of almost $15 billion during the peak of the 2017-18 season. As a matter of fact, IOTA found a place in the top five entries among crypto market capitalizations. But it has lost momentum since then due to their lack of progress and repeated failure to deliver promised projects.
The most viable practice for achieving a massive market capitalization in 2017 focused largely on developing consensus protocols. The scalability flaws with Ethereum presented the perfect opportunity for layer-1 competitors to fulfill all the discrepancies.
Another important highlight of IOTA in an IOTEX vs IOTA comparison would refer to the use of a Directed Acyclic Graph or DAG. IOTA uses a DAG, termed Tangle, which could help in processing thousands of transactions in one second. As a result, it could include all IoT-based applications in its scope.
The Directed Acyclic Graph or DAG is basically a relational database, which you can update easily. In theory, you can update the database at lightning speeds. However, the law of compensation in the crypto world directly points out possibilities for increased centralization with faster transactions.
IOTA also had its fair share of setbacks, such as pausing the network for more than 20 days following a wallet hack in 2020. On top of it, IOTA has not delivered successfully on its different promises with years of promises and no deliverables since 2017, thereby leading to its downfall. IOTA registered one of its worst performances in the 2020-2021 Bull Run and slipped down to 50th position in terms of market capitalization.
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Will IOTA Fade Away?
On the other hand, IOTA shows exceptional promise for coming out as a better choice from the IOTA vs IOTEX comparison. IOTA has shown exceptionally promising prospects through launching its 1.5 variant. The network was previously capable of managing 5 to 20 transactions per second. As a result, the nodes which run older node software can experience difficulties with over 40 transactions per second.
The 1.5 network includes upgraded Hornet nodes alongside better milestone selection algorithms and tip selection. Furthermore, the inclusion of a white flag along with these enhancements has improved the network’s capability for managing more than 1000 transactions per second. While IOTA looks like a favorable choice now in IOTEX vs IOTA debates with the 1.5 network, it does not feature EVM compatibility (IOTA Mainnet also does not have smart contracts). In addition, the 1.5 network also takes away the decentralization aspect, which is a huge turn-off for majority of external blockchain developers.
Just as IOTA started experiencing troubles with the 1.5 network, it has shifted to IOTA 2.0. With an improved focus on the new upgrade, IOTA could move up in terms of efficiency and functionality. Without any competition, IOTA could follow a laid-back approach for developing the IOTA 2.0. On the other hand, competition is the first reason for which we are looking for differences between IOTA and IOTEX.
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What is IOTEX?
The second player in the debate, i.e., IOTEX, is basically an open-source and decentralized platform focused on empowering open economies for machines in the IoT landscape. IOTEX focuses on the primary objective of fostering an ecosystem for enabling people and machines to interact with free will and guaranteed trust. Many people asking questions like “Is IOTA same as IOTEX?” should know that IOTEX focuses more on real-world deployment. Without any marketing or claims about transaction speed, it is building up slowly in silence.
The two cutting-edge devices in IOTEX are the prominent highlights which make it stand out in IOTA vs IOTEX debates. The two devices are Ucam and Pebble Tracker. Ucam is basically a home security camera leveraging a blockchain private key rather than password login credentials. Therefore, the data collected by the device would stay under the control of the device owner.
Pebble Tracker, on the other hand, is an all-in-one hardware oracle leveraging a security element for verifying sensor data. The security element in Pebble Tracker is a black box that you can find in the device processor or Trusted Execution Environment. You can plug the sensor data directly into a smart contract without leveraging third-party oracle services such as Chainlink. Presently, one could only imagine the exceptional value of such real-world oracles in the crypto landscape.
You can also find answers to “Is IOTA same as IOTEX?” with the comprehensive ecosystem of DeFi and dApps. It also features an ideally optimized Uniswap-style exchange known as mimo. In addition, IOTEX has also launched a new play-to-earn dApp, known as “StarCrazy.” At the same time, it has also fostered a fast-growing community of third-party developers a well as dApps for healthcare and gaming sectors.
Is IOTEX a Better Alternative than IOTA?
While IOTEX offers many new functionalities alongside tapping into the DeFi and dApps sector, it is important to wonder whether it is the alternative to IOTA. However, a fair IOTEX vs IOTA comparison would show that IOTEX also has some setbacks. For example, it has a long way to go in the matter of adoption.
In addition, IOTEX requires a lot of devices => IoTeX, from zero devices connected to their platform to 10,000 in one year. IOTA in one year has zero devices connected to their platform. That’s what would be fair to say. before declaring complete victory over IOTA in the case of real-world devices. On the other hand, it is also important to note that IOTEX is the first IOT blockchain to achieve a Coinbase listing. Therefore, it can be quite difficult to find out which one is a better choice between IOTA and IOTEX.
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Differences between IOTA and IOTEX – IOTA vs IOTEX
If you want to find out which blockchain IOT platform would work for you, then you need to find the differences between them. Investors could look for specific factors in each platform for determining the ideal choice for their investment portfolio. Here are some of the important pointers for differentiating between IOTA and IOTEX to find a suitable alternative.
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Liquidity
Liquidity basically refers to the feasibility of converting an asset to cash on demand. The IOTA vs IOTEX comparison turns in favor of IOTEX. You can easily determine the liquidity in a specific crypto market by reviewing the trading volume of tokens of platforms.
As of now, IOTEX boasts of a trading volume of $204,900,438 in a 24-hour period. On the other hand, the trading volume of IOTA in a 24-hour period is $95,929,539. You can clearly notice the huge difference of $108,970,899. When you look at the performance of IOTA and IOTEX in terms of liquidity, the trading volume of IOTEX has increased by almost 79%, while IOTA has registered a growth of 28.25%.
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Rank in the Market
The next important factor in the difference between IOTA and IOTEX is their market capitalization or rank in the market. Market capitalization could also showcase a lot about the possibilities for choosing IoT blockchain platforms. IOTA has the upper hand over IOTEX in the case of market capitalization.
IOTEX has a market cap of almost $977,038,586 as of now in comparison to the $3,933,664,417 market cap of IOTA. IOTA presently ranks at 50th position among cryptocurrencies while IOTEX rests at the 113th position. However, you should also look for the important highlights of growth in market capitalization before choosing a blockchain IoT platform.
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Levels of Adoption
The IOTA vs IOTEX debate also takes the levels of adoption of both blockchain networks into considerations. However, it can be difficult to figure out the exact levels of cryptocurrency adoption. You need insights for predicting whether a coin has been rejected or accepted. The difference between IOTA and IOTEX in terms of adoption turns out as a blurred line.
IOTA has been appreciated by many participants in the IoT landscape, while IOTEX is also performing quite effectively. In addition, you can also use specific indicators like performance and trading volume for determining the acceptance or rejection of cryptocurrencies. The performance and trading volume of IOTA and IOTEX can also showcase proof of their utilization in projects outside and within its own platforms.
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Latest Performance Trends
The performance of a crypto asset in the market is also one of the important factors for differentiating between them. You could find a suitable blockchain IoT platform only by checking how its coin is performing in the market. Interestingly, you could discover different approaches for determining the performance of cryptocurrencies.
Many people focus on the price of the crypto token of the IoT blockchain platform to determine the best choice. The higher price of tokens surely implies that more people are buying the tokens. Price-performance is the easiest metric for tracing the performance of IOTA and IOTEX in comparison to other factors.
The price-performance factor places IOTA on the top in the IOTA vs IOTEX comparison. As of now, the trading price of one IOTA token is $1.42, while that of one IOTEX token is $0.1025. Therefore, IOTA has been a leader in latest performance trends when compared to IOTEX.
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Market Reputation
The reputation of a blockchain IoT platform matters a lot for investors before diving into it. Blockchain platforms with bad reputations might not attract any investors for their tokens. Therefore, reputation is quite vital in the crypto space and an important differentiator in the IOTEX vs IOTA debates. You can track the reputation of a blockchain platform by reviewing its background and recent performance trends.
First of all, the reputation of the teams running IOTA and IOTEX bring both of them on the same page. With experienced and innovative teams behind each platform, it is quite hard to differentiate them on the basis of their founders. However, the IOTA vs IOTEX comparison might take other factors into account for determining market reputation. For example, IOTA leverages a Directed Acyclic Graph or DAG known as Tangle for connecting smart devices in IoT to crypto ecosystems.
On the other hand, IOTEX has also showcased favorable prospects in connecting IoT and blockchain, albeit at a slower pace. IOTA has a better market reputation in terms of capitalization, volatility, and price. However, the recent slump in IOTA’s performance during 2020-2021 Bull Run is an alarming factor. IOTEX, on the other hand, is venturing into the field of play-to-earn games and DeFi, thereby creating new opportunities.
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Security
One of the most important aspects for determining the difference between IOTA and IOTEX would refer to security. All the crypto platforms feature unique and different security features alongside notable vulnerabilities. IOTA leverages a Directed Acyclic Graph rather than a blockchain. Even if it is strong, it can still be vulnerable to manipulations and attacks. However, the IOTA developer team has included the proof-of-work consensus algorithm for validating transactions, thereby improving the security levels.
On the other spectrum of the IOTA vs IOTEX debate in terms of security, IOTEX draws power from blockchain security. On top of it, IOTEX also leverages other mechanisms such as ring signatures for ensuring security of transactions alongside user privacy. The IOTEX IoT blockchain platform also depends on delegated Proof-of-Stake consensus mechanisms.
When talking about security one has to include the fact that IOTA’s network was down for more than 20 days after their wallet was hacked and millions of dollars were stolen.
Other Source: https://cryptonews.net/en/news/altcoins/290223/
This MIT paper pointed to deeply serious vulnerabilities in IOTA’s tangle or DAG technology. The researchers were in touch with the IOTA team and yet 3 years later they were hacked.
Know More: https://dci.mit.edu/research/tag/IOTA
According to the delegated proof-of-stake mechanism, the IOTEX network can rely on the votes of stakeholders for choosing block producers. Producers work for adding new blocks in the IOTEX blockchain for receiving rewards in return. The producers could use their rewards for providing incentives to the stakeholders who expressed their vote for them.
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Final Words
The clear evaluation of all factors in IOTA vs IOTEX comparison shows that IOTA is a leader in market capitalization. It came earlier and has been a favorite of many crypto enthusiasts with considerably high levels of adoption. However, every technology has some setbacks, and IOTA is not anything different.
It does not offer the desired levels of decentralization with faster transactions, and the older nodes are not capable of running more than 40 transactions per second. So, a competition like IOTEX is necessary for driving the growth of IOTA. On the other hand, IOTEX is also developing as a completely new breed of IoT blockchain solution. Learn more about IOTA and IOTEX in detail for identifying the best choice for your needs.
*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!
