The Internet of Things refers to the future network of internet-connected physical devices like home appliances, cars, etc. that users manage and control with a digital watch, mobile, desktop, or tablet. Essentially, IoT makes the idea of smart homes, smart cities, intelligent transportation, and smart grids a reality.
IOTA is a next-gen distributed ledger technology designed in Germany. Its associated cryptocurrency is MIOTA (Mega IOTA or Millions of IOTA). It mainly aims to revolutionize the space of the Internet of Things (IoT).
IOTA for IoT aims to:
IOTA is slightly different from the legacy blockchain platforms. It uses an inventive technology called the ‘Tangle.’ It is a unique data structure that uses the Directed Acyclic Graph or DAG.
What is Tangle?
For more detailed information on Tangle, visit this blog. However, here’s a quick review of the significant aspects of Tangle
IOTA employs a unique distributed ledger architecture, which makes it ‘Blockless.’ The method to achieve consensus in IOTA is also different. It uses a type of ‘Proof of Work.’
From a high-level perspective, IOTA and the associated Tangle technology have four significant features that make it better than other blockchain platforms.
IOTA scales as the number of transactions increases. Each transaction needs the sender to verify the last two transactions on the Tangle. So, the more users send the transactions, the more they get confirmed. It runs establishes a low difficulty ‘PoW’ to verify transactions, which is only a series of mathematical problems.
The more the transactions, the less time it takes to confirm each transaction.
Tangle eliminates the need for miners. It reduces the cost of transactions on IOTA to almost zero.
Static Money Supply
The total numbers of MIOTA that’ll ever come into existence were already created in the genesis block. The total digital currency supply of IOTA is 2,779,530, 283.
The ICO of IOTA and was so large that it initially crashed the exchange platform of Bitfinex for almost half a day.
Given to this excellent start, IOTA does contain prominent differentiating characteristics that would help it in the longer-term.
Everyone knows bitcoin’s scalability problems and slow transaction confirmation times because of its rapidly grown user base.
On the contrary, in IOTA, confirmation would process slowly when the network is small. However, it could even approach zero as the user base expands in size. To put simply, as the transactions in IOTA increases, Tangle’s capacity to handle and confirm transactions get increased.
The bottom line is that the internet of things ecosystem would be massive, which could likely change the world as we know it today.
If IOTA and MIOTA work well with IoT, there’s no stopping for IOTA.