IOTA is a unique kind of cryptocurrency platform that doesn’t use blockchain technology. The network is primarily focused on democratizing the “Internet of Things”. The existing cryptocurrency platforms aren’t capable of handling the vast amount of value and data that is exchanged between the machines.
These networks have a complex process of verifying transactions. IOTA has introduced its own network of nodes to verify the transactions without any delay.
What is IOTA?
IOTA is a decentralized distributed ledger that ensures the secure transfer of value and data between humans and machines. IOTA is dedicated to paving the way for the next generation of the digital revolution known as the Internet of Things.
It enables users to transfer millions of dollars globally without any transaction fee. The network automatically validates the transactions through an advanced mechanism where every new transaction validates the previous two.
Benefits of IOTA
IOTA offers a number of unique benefits compared to traditional blockchains.
IOTA is Highly Scalable
Unlike traditional blockchain platforms, IOTA offers a much faster transaction settlement speed whenever traffic increases on the platform.
IOTA is Zero Fee
The users can transfer millions of dollars through the IOTA network without paying any transaction fee. The recipient gets 100% of the amount transferred to his/her account without any deduction.
IOTA is Low Resource Hungry
IOTA is an affordable and more environmentally-friendly platform because it doesn’t require powerful computing equipment for the validation process.
IOTA Offers Instant Transactions
The users don’t need to wait in the queue for their transactions to be processed. The transaction processing speed of the network increases when there are more users requesting transactions.
IOTA is Decentralized
The users can rest assured about anonymity because the network eliminates the need for a centralized authority. Although IOTA isn’t a blockchain-based platform, it ensures decentralization through its unique mechanism.
Versatility of IOTA
The network isn’t just designed for the transfer of money but the users can also transfer data and information through this network. IOTA ensures the safety of data to maintain trust with its users.
Broader Vision for IOTA
IOTA is dedicated to building smart cities, mobility-focused solutions, global trade, and digital identity through a seamless network of machines.
IOTA Brief History
IOTA was initially introduced as Jinn Project in September 2014 and the team raised around $250,000 through a crowd sale for the future development of the project. However, ICO had to face some regulatory pushback due to zero regulatory framework.
The project was rebranded as IOTA in October 2015. The team raised around $500,000 through a token sale. The team created the IOTA foundation in 2017 to ensure the consistent growth of the project. The IOTA Foundation has now become a part of the International Association for Trusted Blockchain Applications (INATBA).
IOTA network went through a major hack in January 2018 when a 36-year English man stole $10 million worth of IOTA tokens. However, the organization managed to catch the hacker a year later.
Another hacker attacked the network in 2019 and stole almost $2 million worth of IOTA tokens from IOTA Foundation’s wallet. The IOTA network was shut down for ten days to fix this error. Since then, no additional hacking attempts have been reported because the network has now become more secure in 2024.
How Does IOTA Work?
Unlike traditional blockchain networks, the IOTA network uses Tangle (a Decentralized Acrylic Graph) for validating transactions. It’s a network of multiple nodes that are connected to each other in the form of a “tangle”.
The network automatically validates the transaction with the help of the previous two transactions. Thus, the validation process is completed pretty quickly. A simple Proof-of-Work puzzle is also involved in verifying the transactions but it doesn’t require a lot of resources.
IOTA Data Marketplace
IOTA has established its own data marketplace where sensor developers can easily access active data streams. The developers can build highly responsive applications with the help of real-time data available in this marketplace.
MAM (Masked Authenticated Messaging)
The network participants can share information and value using these data sets. The network has established several encrypted channels for the transfer of value and data so that the users can confidently communicate with others. The network is dedicated to providing integrity across all aspects because the source identity of MAMs is kept private.
Cross-Domain Development Kit (Bosch XDK)
Bosch XDK is a bridge between the data marketplace and MAMs. The developers can transfer the data throughout the network after creating a programmable system through this system. The developers can easily access the amazing suite of sensor programmability of the IOTA network.
IOTA network is capable of collecting real-time data from multiple resources. It gives everyone the freedom to create different applications with the help of available data.
MIOTA Tokenomics
MIOTA is the native token of the IOTA network that is used for the transfer of value and data within the network. The users can purchase different data sets from the data marketplace using this token. With a circulating supply of 2.77 billion tokens, MIOTA has a market cap of $795 million.
The total supply is issued to the network participants. However, 5% of the overall supply is reserved for the continuous growth of the network.
Conclusion
IOTA is a decentralized distributed ledger that is designed for the next generation of digital technologies. As the name suggests, the network is dedicated to paving the way for the Internet of Things (IoT). Unlike traditional blockchain networks, it uses its own network of nodes recognized as Tangle.
IOTA claims that it can process millions of transactions per second. The best part is that it doesn’t charge any fee for exchanging data and value. For more information, contact us and we’d be pleased to help you with more information about how IOTA works in 2024.
