Everyone these days is after getting a chunk of the crypto market. Most of the crypto currencies that we see are based on blockchain technology. Blockchain technology is basically made to be safe, secure and transparent. The main focus is to get rid of the mediators that take away some fees in order to pass a transaction. IOTA is an emerging cryptocurrency based on tangle technology which is a blockless technology that takes the concept of crypto to another level.
The IOTA unit on Bitfinex which was around 1.5$ a few days back surged to 2.5$ after news broke that Microsoft will be working with them towards the idea which the coin aims to resolve.
IOTA is based on the concept of Internet Of Things, the communication that happens between all the products and services which are interconnected through the Internet. The IOTA coin aims to work on 4 major morals which are Scalable, Decentralized, Modular and No fees.
How the IOTA transaction making process works
- The transaction input is signed with your private keys
- Via MCMC (Markov chain Monte Carlo) two unconfirmed transactions are randomly selected and are referenced by your transaction
- You need to do some proof of work to have your transaction accepted by the network
IOTA is an open distributed ledger that aims to bridge the gap between payments to be done between internet of things which is essentially the physical things that shall communicate with each other via internet. The IOT industry is expected to be around $2 billion dollars by 2020.
What makes the coin different from others is tangle technology behind IOTA. Tangle works using the directed acyclic graph, transactions are free regardless of the size of the transaction, confirmations times are fast, the number of transactions the system can handle simultaneously is unlimited, and the system can easily scale.
“This next-generation technology will accelerate the connected, intelligent world and go beyond blockchain that will foster innovation real-world solutions, applications, and pilots for our customers,” said Microsoft’ s Omkar Naik in a statement published on the IOTA Foundation website.
After the news broke, this crypto coin surged past 2$ mark and even came to the 5th place in the coinmarket cap. The best part of the coin is that it has helped resolve 3 major issues that were fees, scaling limitation, and centralization. They have a strong foundation and a reason where they believe it can totally replace the current blockchain based coins.
Here is the division of IOTA and its smallest units.
- KiloIota (Ki) = 1,000 Iota
- MegaIota (Mi) = 1,000,000 Iota
- GigaIota (Gi) = 1,000,000,000 Iota
- TeraIota (Ti) = 1,000,000,000,000 Iota
- PetaIota (Pi) = 1,000,000,000,000,000 Iota
IOTA also has a totally new take on how miners will be eradicated entirely, totally opposite to what happens with bitcoins and other crypto currencies that reward miners for validations and confirmations. Today, if a user is making a transaction via Bitcoins then the transaction is deduced by some amount to give rewards to the miners. In tangle there is no place for miners which means there is no transaction fees. Time will tell us if any new crypto move on the same blockchain concept or start migrating towards tangle.
MORE FROM TECHIESPAD: