What is IOTA? - Complete Guide on IOTA

IOTA is a revolutionary cryptocurrency on a decentralised ledger. The team behind the project hope to make it the standard protocol for machine-to-machine payments and communication. The project began in 2015, and the IOTA coin began trading on exchanges in the middle of 2017.

The coins initially began trading in 2015 at below one cent. By December 2017, those that were able to invest in IOTA at the beginning saw their investment grow more than a million percent. We have found and tested the best and most reliable websites where you can trade IOTA today. Click below to get started.

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What Is IOTA?

IOTA

IOTA, which stands for Internet of Things Application, is a new type of cryptocurrency designed for the IoT (Internet of Things). The network is envisioned to facilitate machine-to-machine payments and other micropayments.

How Does It Work?

Unlike Bitcoin and Ethereum, Iota is not built on a blockchain. Instead, it is a type of distributed ledger which uses a data structure called a 'Tangle'. The Tangle is based on a 'Directed Acyclic Graph’, or DAG, which does not rely on miners and has no blocks or chain.

Instead, this consensus mechanism is based on each participant confirming two randomly chosen previous transactions whenever they make a new transaction. Therefore, every user actively participates in the process of achieving consensus on the current state of the ledger. This also means that the network should become faster and more secure as new participants join.

Besides fast, free payments, IOTA can also be used to transmit data. This can potentially allow devices to trade data and communicate with one another on the network.

IOTA is an open source protocol which allows anyone to build their own projects on the network. To date, hundreds of projects have been announced.

Unlike many other cryptocurrencies, IOTA is not mined. Instead, all tokens were generated at the time of the IOTA ICO. In total there are 2,779,530,283,277,761 tokens, and the supply will stay constant forever. IOTA coins can be stored in a freely available IOTA wallet. A more user-friendly IOTA wallet called Trinity has already been announced.

For the network to operate efficiently, it needs to achieve a certain critical mass. In the case of IOTA, a coordinator ensures that everything runs smoothly until the network is large enough to operate securely on its own.

Pros

-  No transactions fees.
-  Unlimited transactions.
-  Becomes more secure as the network grows.

Cons

-  At present, IOTA is not decentralised.
-  Technology is untested.
-  Can only exchange for other cryptocurrencies, not $ or €.

Did You Know?

IOTA has quantum resistance, meaning it cannot be attacked by a quantum computer. There are fears that some cryptocurrencies and blockchains would be at risk from attacks using quantum computers which have far greater computing power than anything available to date. IOTA is designed to be resistant to these threats.

compute

Anyone who believes in the future of the Internet of Things may want to buy IOTA coin. While there are are other cryptocurrencies and blockchain projects dedicated to the IoT, IOTA is by far the largest. Investors wanting to explore the space in more detail could consider reading up on Chain, Hurify and Atonomi. You can track the price of IOTA here.

What We Do

We’ve tested and reviewed brokers, wallets and more and recommend the best providers on this website, so you can start trading quickly and in a safe environment. 

IOTA is a relatively new and exciting project. While IOTA is primarily designed for the IoT economy, it may offer a better solution to the problem of consumers making small day to day transactions.

It is difficult to make an IOTA forecast given that the technology is to a certain degree untested. However, if the IoT economy grows as much as has been forecast, IOTA is well placed in the sector. If you believe the IoT is the future, then IOTA is a cryptocurrency you should consider buying. We have made it easy for you to find an IOTA exchange so that you can buy IOTA today.

Are There Any Similar Crypto Coins?

ByteBall

byteball

Another decentralised system which allows tamper-proof storage of arbitrary data. It's also based on a DAG like IOTA.

 

IOTA FAQs

Why doesn’t IOTA use blockchain?

When a cryptocurrency operates on a blockchain, transactions are processed in blocks. This process can slow the network down and lead to scaling problems. It is particularly inefficient for small transactions. IOTA seeks to improve on this system by employing Tangle tech.

How can I buy IOTA?

IOTA can only be exchanged for other cryptocurrencies and not for fiat currencies like USD and EUR. Once you pick an IOTA exchange or broker, you can buy Bitcoin or Ethereum on the exchange and then use that to buy IOTA. Alternatively, you can transfer Bitcoin or Ethereum to an exchange that offers trading in IOTA.

Why are there no transaction fees on IOTA?

IOTA doesn’t need transaction fees because there are no miners. All participants contribute processing power to the network by confirming two randomly chosen transactions before they can enter their own transaction.

What is the Coordinator?

Decentralised networks are only secure when the network is large enough to ensure that a ‘bad actor’ cannot exert undue influence over the network because trying to do so would be infeasible or too costly. The coordinator is a special node on the IOTA network which digitally signs each transaction and records their location. This node can therefore prevent a single node from taking over the network.

How long will the Coordinator remain in place?

The IOTA Foundation hopes to remove the Coordinator by the end of 2018, but will only do so if there is enough adoption of the technology and enough nodes to ensure the network will not be susceptible to attacks.

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