You’re interested in the IOTA Coin, but you have no idea what is IOTA exactly? Let’s read this simple explanation about this cryptocurrency.
- IOTA use an open-source distributed ledger called as Tangle or DAG chain technology which known as Directed Acyclic Graph.
- Developed to handle transactions between connected devices in the IoT (Internet of Things) ecosystem. Its cryptocurrency is known as MIOTA.
- It began life as a hardware project whose goal was to design low-cost general-purpose processors.
- It aims to solve key scalability and performance issues with Bitcoin by replacing its blockchain with Tangle, a system of nodes in which each new transaction confirms two previous transactions.
- IOTA has its own set of scaling problems and its Curl hash function, which is used for security, is vulnerable, to hacks.
Since 2011, the core team of IOTA has been working on developing its blockchain technology. In 2016, they created the IOTA Foundation and company. Which the team producer are Sergey Ivancheglo, David Sontesbo, Serguei Popov and Dominik. IOTA’s CEO, David Sonstebo has been praised for his marketing approach numerous times. This strategy focuses on establishing sustainable growth and a strong strategic network. The PR activities and blogging of IOTA is handled by David himself.
Since IOTA was launched, it has been managed by the IOTA foundation, which is located in Germany. Like many other cryptocurrency projects, IOTA wanted to create a payment system that could process faster, more secure, cheaper and more scalable transactions. IOTA does not want to not limit itself to just financial transactions, but also to allow the movement of any data from one machine to another. The IOTA project also has its own cryptocurrency too which is calls MIOTA, however, to keep things simple, lets refer to it as the IOTA coin!
Before IOTA officially launched, it raised funds through an initial coin offering (ICO). In total, the project received more than 3000 Bitcoin, which at the time was worth $434,000. Since then, the market capitalization of IOTA has reached heights of more than $14 billion!
The Technology Behind IOTA (Tangle)
IOTA’s “tangle” is a network structure which doesn’t rely on dedicated computer nodes (called miners) to validate transactions as blockchains do. Instead, the tangle uses a technology called Directed Acyclic Graph (DAG) to require that each device on the network confirm two transactions for every transaction it performs.
As devices on the network verify each other’s transactions, the network builds a consensus-based ledger that is theoretically immutable and highly secure. In this way, IOTA avoids the high fees and slow transaction speeds of traditional blockchains that would make it impossible for IoT devices to quickly trade resources in real time while logging vast amounts of data.
Similarities and differences from Bitcoin
Bitcoin transactions are processed by miners in sequential groups called blocks. There is a limit to how many transactions can be processed in one block which has led to intense debates over how to scale Bitcoin.
IOTA’s team aims to remove the need for blocks and allow for better scaling. In IOTA there is no concept of miners verifying network transactions like in Bitcoin or most other blockchains. Instead, for each transaction that occurs in IOTA, the transaction creator is required to approve two previous transactions on the network by doing some computational work. You can essentially think of the ability to transact in IOTA without fees as the reward for helping to secure the network.
This lack of transaction fees in IOTA enables extremely small transactions referred to as nanopayments. Due to Bitcoin’s current network congestion, transaction fees can be relatively high (average transaction fee over $40 at the time of writing) which makes it impractical for small payments. IOTA’s team believes a prime use case for nanopayments is for internet-connected devices to conduct transactions with each other.
In Dec 2015, the entire supply of IOTA was sold in a crowdsale that raised over $500,000 in bitcoin. Since the team didn’t premine any tokens (i.e. set aside tokens for themselves at the start), the community donated 5% of tokens to found the IOTA Foundation which focuses on development, research, and education to advance IOTA.
Advantages of IOTA
There are a number of advantages that IOTA has over other cryptocurrencies, mostly because of its DAG chain technology.
- Fast and Free Transactions: IOTA dispenses with mining, which means no transaction fees. It also can be used for micropayments. Since the network is entirely user validated in real-time, transactions are also very fast.
- Energy and Resource Efficiency: Bitcoin and many other popular cryptocurrencies that use miners consume enormous amounts of energy. Mining computers (called rigs) are also regularly replaced with more powerful computers as mining becomes more difficult, wasting further resources. The tangle eliminates these inefficiencies.
- Quantum Proof: Quantum computing is an emerging field of computing that promises unprecedented processing power that could potentially compromise regular cryptography systems, including regular blockchain technologies. IOTA claims to be “quantum proof” by using an “unforgeable” scheme that makes it impossible to hack, even by quantum computers.
- Zero Inflation: Since no more IOTA coin will be created, there will be no inflation. This means that the value of the currency will not decrease because of an increase in coins (though it could, of course, decrease for other reasons).
- Scalability : Network become stronger when the number of transaction increases. IOTA can achieve high transaction throughput. If more IOTA transaction are created, the confirmation rates are getting better.
- Many Competitors: There are many competitors in the IoT space, including large multinational corporations with virtually unlimited resources. Other cryptocurrency competitors include Waltonchain and IoT Chain. Other DAG based cryptocurrencies like Byteball or Nano could also theoretically be used as a means of scalable, fast transactions for the IoT, while other scalable decentralized application (dapp) platforms like EOS could potentially use dapps to provide use cases for the IoT beyond simple transactions.
- Unproven Technology: As mentioned, several cryptography experts have shown concerns over IOTA’s stability and security as a platform. Using so many unproven technologies at once certainly opens up the possibility of unforeseen security vulnerabilities or other problems.
- More Centralized at First: IOTA , is vulnerable if only 34% of the network is controlled by a single entity. This vulnerability would theoretically be very difficult to take advantage of once the network scales into an IoT made up of millions or billions of devices, but until then, the Coordinator is required. Some argue that this is a form of centralization and potentially an unfortunate single point of failure.
Historical data for IOTA
IOTA Price Prediction for 2019-2020 & 2025
Most experts agree that IOTA is a project with excellent prospects. Experts say that over the next two years we will see the massive development of IoT, so the need for technical solutions for the “Internet of things” will only grow. And the IOTA Foundation has already proposed such solutions. An open and fast payment system for transactions has been created, and work on microprocessors will begin in the near future. That is, IOTA is not just another cryptocurrency, but a means to support very relevant technology.
Experts advise investing in cryptocurrency now, and get profit in 2-3 years or later when the Internet of things will become a truly massive phenomenon. The more people learn about IoT capabilities, the greater will be the need for IOTA. As you already know, it is the demand for cryptocurrency that determines its market value. Now, let’s find out what should we wait from IOTA cryptocurrency in 2019, 2020, and 2025.
1. Wallet Investor IOTA Bullish Price Prediction for 2019, 2020 & 2025
According to WalletInvestor source, the price of IOTA may drop from 0.279 USD to 0.0472 USD. The change will be -83.0967%. In 2020, the price can increase to $0.446. In 2025, the rate of MIOTA can reach $2.232.
2. Trading Beasts Price Forecast for 2019-2022
By the end of 2019, the price will rise up to $0.3233212. In 2020, MIOTA price will not change significantly. It will reach only $0.4347959. The rate will grow gradually. So in 2021, the cost of one IOTA crypto token will be equal to $0.5087706. In 2022, IOTA will be worth of $0.6250045.
3. Reddit Users Price Prediction for IOTA
Reddit users are completely sure that the price of MIOTA depends on the Bitcoin rate.
4. Digital Coin Price IOTA Forecast for 2019, 2020, and 2025
According to the source, IOTA (MIOTA) is a profitable investment. By the end of the year, the price of one MIOTA can go up to $0.55085758. In 2020, the price can reach $0.82164248. In 2025, the rate will not change so much. However, one IOTA crypto coin can cost $1.34.
5. Long Forecast Price Prediction for 2019, 2020, and 2023
By the end of this year, the MIOTA coin price will range from $0.28-0.32. The source predicts downtrend for 2020, so the price of the asset will be $0.13-0.17. In 2023, the rate won’t change a lot, the price of one IOTA will be from $0.25 to $0.29.
Source: Investopedia, Coinswitch, changelly.
Photo Credit : Coinpedia
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