CryptoZiller Iota Dashboard
What is IOTA?
IOTA is a distributed ledger that utilizes directed acyclic graph (DAG) instead of blockchain technology to make payments and transactions between the devices within the Internet of Things (IoT).
IOTA’s goal is to enable faster transactions by making transaction process decentralized and completely transparent for users who are participating in business-to-business models. There are no transaction fees applicable to IOTA network and no miners are involved.
What makes IOTA different from blockchain?
IOTA is revolutionizing the way of doing business in the semi-virtual economy market. Instead of leveraging blockchain to support decentralization, IOTA has designed its coin using a technology called Tangle, to increase scalability.
Tangle is a block-less platform that is used to design coins that are lightweight and scalable. Tangle is different from blockchain in the sense that it creates a decentralized value that is not separate but intrinsic part of the network. This means that IOTA is a peer-to-peer network that is self-regulated, decentralized, tamper-proof and secure for making real-time transactions.
Furthermore, Tangle doesn’t require miners to verify transactions. The machines connected to the network each act as nodes that verify transactions. As a result, the degree of confidence of transactions is greatly increased.
The technology behind IOTA is proving that decentralized platforms and currencies can be made even without leveraging blockchain as the base technology.
How is consensus achieved in IOTA?
IOTA is also different from blockchain in the way consensus is achieved. Blockchain requires participants to compete against each other in an attempt to solve complex computational problems and earn rewards. This allows a subset of the network that has superior computational power to achieve consensus, locking out a large number of participants.
In compassion, IOTA network allows for all participants making transactions to actively participate in the consensus. Two transactions are referenced directly and other transactions in the sub-tangle category, allowing for a parallelized and decentralized validation, with no miners.
What is IOTA (MIOTA) token?
IOTA token is the digital currency that is used to make transactions in IOTA network. Data transactions throughout the Internet of Things will be supported using IOTA cryptocurrency.
Because Internet of Things devices, gadgets and smart appliances we use every day are all collecting our data, that data will be traded between interconnected machines using IOTA cryptocurrency.
IOTA tokens were generated originally through a “genesis” address. The total supply of IOTA tokens is two billion, seven hundred seventy-nine million, five hundred thirty thousand, two hundred eighty-three tokens. No tokens will be generated in future and there’s no mining of IOTA’s involved.
The distribution of IOTA remains solely in the hands of the owners of IOTA. Currently, it is the owners who own approximately 50% of all available tokens.
What are the uses of IOTA?
IOTA is built to support the economy of things. This includes a network of devices known as the Internet of Things. Internet of Things devices are connected using Wi-Fi, Bluetooth, and other applications. IOTA network will support a variety of devices, including vehicle or appliances that are enabled to share information and exchange data through a connection. Examples of such Internet of Things devices include refrigerators, virtual assistants, Smart Cities, Smart Grid, vehicle appliances and so on.
IOTA network can also be used for minor transactions, electronic voting, encrypted messaging and any other scalable applications.
Can I mine IOTA’s?
No. There’s no mining. IOTA Proof of Work does not work in the same fashion as the Proof of Work mechanized usually used in blockchain like Bitcoin or Ethereum. The consensus in IOTA is completely decentralized with each network participant that makes transactions, hence there’s no way to earn IOTA’s through the computational effort required for making such transactions.
What challenges does IOTA face?
Like any other cryptocurrency, there are certain challenges IOTA must address in order for it to deliver what it promises. Some of criticism IOTA faces are things to do with Conflict Resolution Vulnerabilities, Malicious Attack, Parasitic Chains, Ternary Processor concerns and Cryptography Best Practices.
Although, it’s an interesting technology, the success of IOTA is tied in the Internet of Things industry’s adoption of it.