What is IOTA? - Coin of the Week: IOTA
IOTA [MIOTA]
IOTA is a next generation public distributed ledger that, unlike other cryptocurrencies that utilize blockchain, uses a novel technological approach called the Tangle. The Tangle is a new data structure based on a Directed Acyclic Graph (DAG).
IOTA doesn't have Blocks, Chain or Miners. To make an IOTA transaction one must validate two previous transactions. This makes it possible for IOTA to reach consensus while allowing near instant payments for no transaction fee.
IOTA is specially created for Internet of Things (IoT) devices. It makes it feasible for these internet connected devices to make micro-transactions themselves, creating a Machine-to-Machine economy, where, for example, your solar panel has the ability to sell electricity to your neighbour's light bulbs.
Eliminating mining and incorporating the Tangle makes IOTA endlessly scalable, as the more users there are, the faster and stronger the network becomes.
Interesting facts:
- IOTA was founded in 2014 as a German non-profit organization;
- IoT devices have been regarded as the 4th industrial revolution, as it opens up never before seen opportunities, and IOTA is positioning itself as a critical factor to make the IoT revolution happen.
- In November 2017, Microsoft's Blockchain specialist, Omkar Naik was quoted saying that Microsoft will partner with IOTA, which was later proven to not be the case.
- In December of 2017 the price of IOTA skyrocketed from around $1 to $5 in a matter of a week, as IOTA announced partnerships with Samsung and Fujitsu.