All About IOTA: An Open-Source Distributed Ledger

All About IOTA: An Open-Source Distributed Ledger

What is IOTA:

IOTA cryptocurrency is the first of its kind that came into existence to provide an extra edge to the Internet of Things. It is a combination of both cryptocurrency and a platform that is created majorly to provide power to the Internet of Things. It is an open-source distributed ledger that provides microtransactions and data integrity for machines.

IOTA enables instant micropayments that can easily be done without any commission. This means a transaction of minimum value or smallest tasks in a unified network is also possible using IOTA cryptocurrency.

History of IOTA:

The idea of IOTA cryptocurrency began in 2015 with the ICO. During the initial stages, the concerned team collected around 1337 Bitcoins.

2016 saw some beta testing followed by the beginning of the project in 2017. During this time a huge amount was invested in the development and marketing of the new project.

June 2018 saw the debut of this IOTA on the famous exchange known as Bitfinex.

How Does It Work?

Unlike Bitcoin or Ether that uses Blockchain platforms, IOTA uses a different record journal called a Tangle cryptocurrency. Tangle is a log that is technically a DAG-directed acyclic graph.

Tangle cryptocurrency concept involves keeping everything on records where the information is stored. However, IOTA Tangle is entirely different. In Tangle Blockchain whenever a transaction gets processed, it should first confirm the last two transactions that were performed on Tangle Blockchain. This means every transaction needs to confirm its previous transactions making the overall process faster and leads to a more efficient network. Tangle is a free network that does not require any commission or transaction fee.

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IOTA & Internet of Things:

The basic prospect of IOT is to serve, hence the IOTA platform. Designed with the concept of serving people, Internet of Things is a global network where physical objects interact with other physical objects via built-in technologies.

With IOTA, all processes in IOT ecosystem will be tied up and will be able to process microtransactions and will be configured through transactional chains.

Advantages of IOTA:

IOTA cryptocurrency has a multitude of advantages over the usual Blockchain and Bitcoin ecosystem:

  • No Transaction Fee: IOTA is free from any transactional fee or commission.
  • Micro-Transactions: IOTA Tangle can perform minimalistic transactions at higher speeds.
  • Scalability: Parallel validation of transactions provides high transaction throughput.
  • Decentralization: Every transaction in IOTA is considered equal and actively participates in harmony.
  • Quantum-immune: IOTA makes use of Curl which is a trinary hash function. Curl makes use of Winternitz signatures that makes a transaction through IOTA quantum immune.

Prospects:

Since its inception in June 2017, IOTA cryptocurrency has easily managed to capture about 3% capital of the total cryptocurrency market. If the trend continues, IOTA and tangle Blockchain will be able to capture a capitalization of almost 12 trillion USD by the end of 2018.

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Pragya Dani is a technical blogger at Systweak. She loves exploring hidden and lesser known features of gadgets and all things tech. Pragya also likes trying out different cuisines and Italian tops her list

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