What's the driving force behind IOTA? It's its rapidly growing network of interconnected devices or the 'Internet of Things.' Its primary aim is to enable an infrastructure that allows machine-to-machine transactions to happen between every device hooked to the internet.
What's IOTA?
At the center of IOTA, there's an inventive new spin on the blockchain. It's being called "the tangle." Tangle architecture's designed to efficiently handle transactions in this incessantly increasing economy that bolsters the so-called Internet of Things.
Let's see how it works:
- All of the devices connected to the internet, such as computers, aren't used to their full potential most of the time.
- The vision is to offer a secure medium for people to generate revenue by enabling others to use some of that unused power.
- In the real world, the possibilities for this new machine-to-machine economy span far beyond computers. The first open-source distributed ledger is prepping up to be the backbone of a new type of sharing economy formed for a wide array of smart devices.
The difference between this first open-source distributed ledger and Bitcoin?
The advent of Bitcoin proposed two basic concepts to the world; decentralized digital currencies and blockchain technology. IOTA's developed keeping these two fundamental aspects in mind to create a new type of infrastructure designed for the expansion of the network of Internet-connected machines, or smart devices.
Also Read: A Compact Guide To Knowing The Importance of IoT in Blockchain
IOTA, instead of focusing on P2P (peer-to-peer) transactions, is designed for machine-to-machine level transactions.
Does it have a cryptocurrency (coin)?
The IOTA cryptocurrency's intended to work as a global medium of payment for machine-to-machine transactions, executed on the IOTA network.
Designed with global adoption in mind, IOTA aims to provide a solid foundation for digital currency transactions to be executed throughout the IoT (Internet of Things).
The IOTA Tangle:
One of the attractive parts of IOTA is the 'tangle.' It has emerged as a new type of data structure. The tangle is a decentralized, P2P network that's not dependent on "blocks," external c4.4onsensus process, or mining. It enables safe data transfers to be executed directly between IoT devices without transaction fees in a self-regulating manner.
How to make money with IOTA?
When the IOTA foundation sets out for mass distribution, users will be able to earn money by enabling people to harness the unused power of their connected devices.
Although the project currently hasn't reached this stage, the foundation decided to launch a public test net in May 2017 to provide people with a chance to interact with the platform. A "bug bounty" program is being run, which incentivizes individuals for finding bugs within the IOTA framework.
Key Takeaways:
Currently, the foundation is researching solutions to enhance networking between the various types of devices connected to the Internet of Things. Different devices utilize different protocols to engage with the network. IOTA's prime goal is to enhance this process to allow smooth machine-to-machine communication.
One of the pertinent issues with many blockchain-based applications is their scaling capabilities. This Distributed Ledger Technology solves this challenge by using a method called snapshotting" to manage data on the tangle database in a way that it can allow the network to execute many transactions at once.