IOTA: blockchain.. no, cryptocurrency.. yes
IOTA (MIOTA) is a prominent player among the cryptocurrencies. It does not use blockchain technology, but DAG (Directed Acyclic Graph), with the name Tangle. Whoever says IOTA, also says Internet of Things (IoT). This is precisely the purpose for which this technology was conceived. It has to offer scalability, especially in the case of huge amounts of microtransactions. This has succeeded, because the Tangle is already being used for this purpose by software developers in the automotive industry and that is only the beginning of the journey.
IOTA or MIOTA, what is the difference?
A MIOTA is 1,000,000 IOTA and has been chosen by the project to be used as the unit of account for the time being. If you want to invest in IOTA, you will right now always buy MIOTA. If in the future the value increases and 1 MIOTA is no longer small enough for a micropayment, the team will drop the MIOTA and start using the IOTA as a unit. The total IOTA volume is 2.8 billion coins, all of which were put into circulation during the ICO. The founders did not keep anything for themselves at the time. When it turned out that more money was needed to further develop IOTA, it was decided to set up the IOTA Foundation. The community then donated 5% of the total number of coins voluntarily to the developers. This clearly shows how strong the belief in the opportunities for this crypto coin is – and how the community is willing to actively contribute to this.
The Tangle technology has no direct competitors. That is not possible, because the technology behind the Tangle differs in every way from the standard blockchain. Tangle is open source software and is being further developed together with other technology companies such as Microsoft. So far it is IOTA that is the competitor itself. Complications and research that takes longer than expected. Open source also means that the software can and may be used by others, such as the relatively unknown IOT chain. This new project also focuses on IoT, but they are not nearly as big as IOTA.
The application of the technology in real life situations is very important for further development and implementation. Collaborations with Volkswagen, BOSCH and Sirin Labs are considerable pillars on which IOTA can rely. The number of partnerships is still increasing. Especially with the development of the self driven car and other autonomous decision computer systems, there is a growing demand for a system that can process millions of microtransactions at the same time. And IOTA can do that without any problem.
Will it change the future?
IOTA has a number of disadvantages. For example, the network is not yet completely stable and relies on a coordinator and there is a lot to say about safety (although a lot of work has been done on it lately). The fact that Tangle technology does not enable smart contracts is a real weakness. Had this been possible, IOTA could have been a comprehensive solution, where now it must be combined with other (blockchain) applications.
But at the moment, the benefits are decisive. It is highly scalable because it does not work with a classic blockchain, and there are no transaction costs. These two factors are very important. At a time when millions of microtransactions (think of all payments of less than a euro) are being made worldwide , this must be done quickly and securely. And it must be done almost free of charge, because paying for every transaction is more associated with the banking system than with digital money. IOTA has the future, but that future is strongly dependent on the rise of the Internet of Things. If we really go all digital, including our fridges, cars and lawnmowers, then there is room for a huge rise in IOTA’s price.
The development of IOTA itself, the Tangle technology, but especially the rapid growth of the IoT market makes IOTA a cryptocurrency to keep an eye on. Add these coins to your portfolio now to make sure that you don’t miss out the moment this currency strongly increases in value.