Trade name: IOT
Year of Foundation: 2016
What is IOTA?
The name comes from the Internet of Things (IoT). There is a chance that there will be over 50 billion connected internet devices in the near future. IOTA is focused on developing a way to transfer micro transactions among these devices. It aims to allow the devices to send micropayments for technological resources. This is set to take place in real time.
The coin does not use the traditional blockchain as set by most cryptocurrencies. It has developed a new technology termed triangle. The tech uses a mathematical concept called Directed Acyclic Graphs (DAG).
How does IOTA work?
To validate its own transaction, two previous transactions at the node must be approved by each node in the DAG triangle.
The first step involves removing “miners,” these are entities not needed to validate transactions. This ensures that there are no obstacles when there are high transaction speeds.
The second step is for the network’s growth and speed to become directly proportional to the number of people using it. IOTA does not have transaction fees, and the scaling problem is allegedly solved.
Its use is intended to solve and simply transactions that involve objects that have sensors.
History of IOTA
The launch for IOTA was initiated in 2015. There was an alteration in the blockchain, and the coin was created with the purpose of integrating it with the Internet of Things. This was to ensure maximization efficiency of the payment made between IoT devices. It entered into a period of beta-testing for almost the whole of 2016. It functioned as a payment system in this period. The developers put together efforts and managed to create an effective payment system by 2017.
How to use IOTA
At the moment, you can buy IOTA from some exchanges across the market. Bitfinex is the exchange that offers the highest liquidity at the moment. Through the exchange, you can buy IOTA using BTC, USD, and ETH.
The best way to use IOTA currently is through the paper wallet, especially when doing so off the exchange. It is the easiest solution to long-term storage. A desktop wallet may also work, but the apparent risks will be staring at you.
A simple demonstration of IOTA use could be an IOTA-enabled vending machine. The machine can dispense soda without associated transaction costs like the case for bitcoin.
The MIOTA is currently at $1.69USD.