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). Due to the unique attributes, it currently has a top-ten spot as per the Coinmarketcap. In this article, we will take a gander at deep insights and unexplored aspects of IOTA for IoT.
In true essence, IOTA for IoT aims to:
In case if you aren’t sure about IoT, although it’s rare to happen, the Internet of Things refers to as the future network of internet-connected physical devices, home appliances, cars, etc. that can be managed and controlled by a digital watch, mobile, desktop, or tablet.
In longer terms, IoT can help us make ideas such as smart homes, smart cities, intelligent transportation, and smart grids, a reality.
Firstly, let’s understand the potential of MITOA and IOTA.
As per experts, IoT would consist of more than 30 million objects by 2020.
Ericsson states that “Things that can get benefit from being connected, should be connected.” Now, this certainly looks to be the case.
IOTA is slightly different from the legacy blockchain platforms. It uses an inventive technology called ‘Tangle.’
The Tangle is a unique data structure that uses Directed Acyclic Grap or DAG.
For a more detailed explanation, refer to this blog.
However, the necessary thing to know is that:
As a matter of fact, except IOTA, no other cryptocurrency is using the Tangle technology.
IOTA employs a uniquely different distributed ledger architecture. Therefore, aspects of IOTA are not similar to other Blockchains and thus, gets called ‘Blockless.’
The method to achieve consensus in IOTA is also different. It’s a type of ‘Proof of Work.’
At a high level, IOTA and the associated Tangle technology have four significant differences.
In a nutshell, IOTA scales correspondingly to the number of transactions. Each transaction needs the sender to get past two transactions verified on the Tangle.
So, the more users send the transactions, the more they get confirmed.
For verifying transactions, a device runs low difficulty ‘PoW,’ which is nothing else but a series of mathematical problems.
Transaction time on Tangle works inversely proportional to the number of transactions.
The more the transactions, the less time it takes to confirm each transaction.
As Tangle eliminates the need of miners, newly created units of transaction fees and digital currency need not be extracted from the system to pay confirmation fees. Eventually, it makes transactions on IOTA zero fees.
Static Money Supply:
The total numbers of IOTA that’ll ever come into existence were already created in the genesis block. The total of IOTA’s will neither increase nor decrease.
The total digital currency supply of IOTA is 2,779,530, 283.
The ICO of IOTA and was so large that 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.