IOTA: everything you need to know about this crypto-asset

Touted as the virtual currency that may well surpass the blockchain technologyIOTA for Internet of Things Application is an open source and scalable DLT (Distributed Ledger Technology).

Like the traditional currencies that we are all familiar with, such as the American dollar, the euro or even the pound sterling, cryptocurrencies are gaining more and more followers. It must be said that virtual currencies are now available in a myriad of choices. This in order to adapt to all types of financial transactions and especially the requirements of the user.

In the cryptosphere, IOTA is making a small place for itself and attracting more and more interest from virtual currency enthusiasts. Currently, this cryptocurrency has an exchange rate of 0.30 euro. It also ranks 25th among the cryptocurrencies with the largest market capitalization. In numbers, it has a market capitalization of around $3.51 billion.

The main objective of this DTL is to guarantee a transfer of value and data most efficient and secure way possible to democratize and fuel theIoT (Internet of things). And this, without having to mobilize a lot of resources and without having to invest in dedicated infrastructure.

Ultimately, IOTA and its MIOTA token guarantee the authenticity and validity of the data that is exchanged on the network. This, preventing any type of fraud and falsification.

IOTA in a nutshell

As we move towards a world where digital has become the norm, more than ever reliable communications require the establishment of a highly secure network system. IOTA is positioning itself as the ideal solution thanks to its innovative approach focused on the social impact of convenience and mobility.

According to specialists, in the years to come, this DLT will make it possible to create and maintain machine savings by enhancing communication effectiveness. This, while allowing a more efficient management of financial relations between man and machine.

For the record, IOTA was officially launched in 2017 in the form of utility tokens. Today it is both an experimental virtual currency and a open source communication protocol available to all developers.

In general, this DLT has been designed to provide users with electronic money that is highly decentralized and scalable. His credo? Enable micro-payments and payments without transaction fees between IoT devices. In fact, it suffices for the user to validate two transactions to send a new one.

In addition, regardless of the size and number of transactions carried out, the validation is done almost instantaneously and requires very few resources.

Furthermore, created with a maximum supply of 2,779,530,283 tokens, IOTA mobilizes 5% of its total supply for the development of the network and the creation of the IOTA Foundation.

How does it work exactly?

Unlike other virtual currencies, IOTA is based on a Tangle and not the blockchain architecture. It is a scalable architecture based on the acyclic graph DAG (Directed Acyclic Graph). This allows the system to verify an unlimited number of transactions. Indeed, thanks to its extensibility, this tangle has a computing power that increases as the growth and performance of the network.

Note also that if the DAG uses many blockchain databases such as the transaction validation mechanism, the decentralized database, the peer to peer network, it allows IOTA to achieve a higher level of decentralization. This, thanks to the different nodes that make up the network.

In details, IOTA not only guarantees a relatively low transaction confirmation time, but also allows the user to place a large number of transactions.

IOTA: strengths and weaknesses?

If IOTA arouses the interest of many crypto enthusiasts today, it is simply because this innovative and well thought out project offers a multitude of undeniable advantages for users. Among which :

  • The free and instantaneous transactions regardless of volume and number
  • The speed and fluidity of transactions
  • The project is supported by many renowned actors on the IoT market (Samsung, Telekom, Microsoft, Engie and Fujitsu)
  • The network is easily scalable

Of course, IOTA does not only have advantages either. Among its disadvantages, we must take into account:

  • Many major critical flaws
  • The low security of the Curl hash function
  • The lack of transparency in the distribution of tokens
  • The complexity of its protocol due to its ternary design
  • The possibility of a double spend because of the weakness of the Tangle at its ends

Focus on the IOTA Foundation

The IOTA Foundation is a non-profit organization based in Germany. It was launched in 2015 by Sergey Ivancheglo, David Sønstebø, Dominik Schiener and Sergei Popov. A member of the Trusted IoT alliance, the organization is essentially dedicated to creation of its eponymous cryptocurrency. A virtual currency that he supervises with the utmost care. This is to guarantee its accessibility to all developers under a free license.

Today, the organization is made up of around ten employees as well as other external members. To cite only the mathematician Samuel Reid, the e-health specialist John Halamka. Seedlab and Regine Hashka Helmer are also permanent members.

Note that the IOTA foundation has been working for several years in collaboration with Volkswagen and Innogy for the development and deployment of Car Pass. It is a technology that aims to strengthen the security of digital identities. But also, to provide users with charging networks for electric cars.

For information, the organization launched in November 2020 on its platform a pre-alpha version of smart contract dedicated to industrial applications.

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IOTA: everything you need to know about this crypto-asset

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