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.
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 that so-called Internet of Things.
Also, know the importance of combining IoT and Blockchain.
Let’s see how it works:
The advent of Bitcoin proposed two basic concepts to the world; decentralized digital currencies and the 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.
IOTA, instead of focusing on P2P (peer-to-peer) transactions, is designed for machine-to-machine level transactions.
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).
One of the attracting parts of IOTA is the ‘tangle.’ It has emerged as a new type of data structure. The tangle is 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.
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.
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 to data on the tangle database in a way that it can allow the network to execute many transactions at once.