IOTA Cryptocurrency is a Worthy Substitute for Bitcoin. TheIOTA’s cryptocurrency product came on the crypto market quite recently and immediately ranked high in the ratings. This provided good predictions about the further development of this currency. In this article, we will consider the mechanism of the operation of the IOTA tokens, the main features, and differences from other crypto-tokens.
IOTA Tokens on the Cryptocurrency Market
For the first time, this cryptocurrency appeared on the general market in October 2015. High demand and popularity among users were provided by a unique mechanism of the system, not based on the Blockchain. The entire system operations are built on the Tangle accounting journal concept. Perhaps an alternative approach to crypto exchange will ensure the future development of IOTA tokens.
Let’s talk a little about the history of this crypto. A lot has changed since the company launched its first tokens. The company experienced two major hacking attacks in 2018 and 2018. For the first time, hackers broke in through the theft of the user’s personal data. For the second time, hackers took advantage of the vulnerability of the Trinity wallet. These cases have prompted developers to develop defense mechanisms more deeply. Keep reading if you want to know what IOTA looks like now.
The advantages of the IOTA platform, such as scalability and a wide range of use cases, have already become apparent. As we know, it is the low scalability that is the main disadvantage of Bitcoin smart contracts. This is what makes transactions very slow. So, IOTA allows users to make more transactions than the Blockchain. What else?
IOTA Currency Rates (MIOTA) for Exchange
The creators of IOTA did not even plan to create a cryptocurrency platform or a decentralized network. However, the platform turned out to be such a convenient financial instrument that the value of the IOTA token skyrocketed.
To begin with, it should be noted that immediately with the entry to the general cryptocurrencies market, IOTA took 6th place in the overall ranking by the amount of capitalization, considerably outperforming such well-known tokens as Litecoin and Dash. Comparing this result with many other cryptocurrencies, we can say that this cryptocurrency is unique in its prospects and is precisely suitable for profitable investment.
How much at the moment is one IOTA token worth – an urgent issue since the user is inclined to invest only in promising coins. On February 06, 2018, MIOTA was in 10th place in the rating of cryptocurrencies, and its value is 1,38 US dollars. If to speak about Bitcoin-equivalent, then 1 MIOTA is currently equal to 0,000020582 BTC. As of May 15, 2021, the value of the token is 1.99 US dollars. This is equal to 0.00004342 BTC. There is not only stabilization but also strengthening of this cryptocurrency. What’s the secret?
The Main Opportunities of IOTA Crypto (MIOTA)
IOTA Foundation specialists strive to correct the existing shortcomings of the cryptocurrency inherent in the Blockchain and the Internet of Things (IoT).
The key advantages of the IOTA system are as follows:
- Currency scalability
- Transaction speed
- No transaction fees
- Synchronization of IoT devices
- The impossibility of mining (the purity of the system).
An alternative platform allows for better distribution of data flows, which speeds up transactions between users. Scalability, which we have already mentioned, remains one of the key advantages of IOTA. This feature is associated with the main advantage of the IOTA cryptocurrency (MIOTA). This is the ability to conduct a large number of micropayments. The system is able to handle all requests without hanging and long waiting. Users can make transactions and work on crypto exchanges many times faster than on the basis of the Blockchain.
Also, the IOTA system of cryptocurrency provides the ability to make transactions without commission. Blockchain overload forces users to pay transaction fees to make transactions faster. Since IOTA operates on the principle of the Tangle accounting journal concept, this system has not yet encountered overloading.
Using the IOTA crypto, you will not pay any additional costs for carrying out the digital payment itself. Since almost all cryptocurrencies have a system of commission fees for operations, free money transfers are a very beneficial advantage of the IOTA. This became possible due to the separation of the procedure for verifying and confirming transactions from the users’ actions.
However, the exact time of the transaction in IOTA has not yet been established, as the system is still in its development. Individual factors, not just systemic ones, are also involved in this issue. Anyone who wants to send funds must confirm the two previous transactions. So, the transaction speed depends on the efficiency of the user’s computer.
Standards concerned
IOTA Foundation introduces standards to connect the elements of the Internet of Things. The idea is for IoT devices to sync across the entire network. Users can connect more devices to the system and synchronize more daily activities. All connected devices can transmit signals to each other regarding the exchange of information and cryptocurrency turnover. For transactions to be secure, the IOTA service includes a coordinator node that is responsible for protecting against hacker attacks.
It’s also worth noting that tokens cannot be earned with the help of mining. All IOTA coins were issued immediately, and no new releases are expected – but the number of tokens fully satisfies all current user requests. The creators released a significant portion of tokens to the market, namely 2,779,530,283,277,761 IOTA.
During the existence of the IOTA cryptocurrency in the market, there were practically no shortcomings. It is important to note that developers constantly improve the system’s performance, and their work can be praised. They have provided the IOTA network with virtually uninterrupted operation. They are constantly monitoring the main trends of the market and the desire of the users’ audience to realize and integrate as many new and useful ideas as possible.
Useful Capabilities of the IOTA
The functions of cryptocurrency provide great opportunities for carrying out transactions between users with the highest level of data confidentiality. So, the system is protected from all third-party interventions since it is based on the Tangle database protocols and not on the standard blockchain algorithm. IOTA’s functionality and level of protection allow users to make free transfers without exposing them to high risk.
Prospects for the work of the IOTA electronic payment system today can be very well estimated. Developers constantly introduce new functions, and the system itself is open and flexible enough to be improved in the nearest future. Let’s take a closer look at how this young system works and what gives it the opportunity to compete with Blockchain technology successfully.
The invention of the IOTA Foundation
Theoretically speaking, IOTA is nothing more than a connection between Internet of Things (IoT) devices. The network allows you to conduct smart contracts with multiple connected devices and supports communication between them. The whole system is made up of several complex instruments, which we will now talk about.
Tangle Technology
IOTA contrasts the Tangle mechanism with the classic Blockchain. This is a consensus mechanism, that is, a protocol that works as a directed acyclic graph. If miners manage the process in the Blockchain network, a coordinator node works instead of them in Tangle. This coordinator is a code that does its job automatically and is, therefore, faster than a human. It collects encrypted data from all other nodes and processes it quickly and securely.
Data Marketplace
The IOTA system is designed around the Data Marketplace center. Through it, developers can access and manage encrypted data. Unlike a system of individual sensors, this center operates in real-time. This is another mechanism that makes the IOTA system fast.
Data Marketplace is a center for coordinating the work of applications and smart devices. The node allows developers to transmit data securely since the encryption is based on the MAM (Masked Authenticated Messaging) technology. Therefore, users can not worry about the leakage or illegal use of information.
Masked Authenticated Messaging provides high functionality. Since the transfer of all MAMs is carried out through encrypted channels, this allows unknown users to exchange cryptocurrencies without the risk of losing money rapidly.
Cross-Domain Development Kit
This is the link between Masked Authenticated Messaging and the Data Marketplace. A cross-domain Development Kit is a code that allows developers to transmit data over the IOTA network via sensors. In real-time, data is transmitted from one sensor to other sensors.
For example, the decentralized network allows the adoption of the principle of smart devices in the energy sector; since 2016, the decentralization of the sector continues at a fast pace. This system is also suitable for quick operations on a crypto exchange. In the absence of a transaction fee required on a Blockchain crypto exchange, the turnover of finance in IOTA is more profitable and faster for users.
This technology allows the reproduction of the sensor node to connect all the elements and devices of the system. The collected information is then sold through the Data Marketplace.
These are comprehensive tools for relatively fast and secure IOTA transactions without high risk. Next, we’ll look at the basic mechanisms of the system, a personal application for conducting transactions, and its use for the personal purposes of users.
The IOTA (MIOTA) System Operation Mechanism
Since the network is organized on a unique basis, the IOTA wallet (MIOTA) is not standard in the client’s understanding. You can buy IOTA (MIOTA), but for this, you need to understand the essence of the system, which will be discussed further.
For detailed and confirmed product information, please visit the official IOTA website (MIOTA) – https://iota.org.
On the official website of the project, users can familiarize themselves with the system’s main advantages. The source code of the project is constantly being improved and is open to new ideas. This allows us to continue to improve the mechanism of the system based on the unique Tangle protocol, which is significantly different from the standard Blockchain technology.
As we have already noted, this technology is a type of acyclic graph with an own protection system against quantum interference. Thanks to the unique work of Tangle, all transactions occur very quickly, and no commission is charged for them.
Components of the System
To better understand the essence of the work of IOTA (MIOTA), we can briefly and easily describe the main options provided by the developers:
- Microtransactions – nano- and microtransactions equal to even a few American cents are available in the mode of simultaneous multiple sending and instant processing in the absence of commissions;
- Data transmission – Tangle provides information transfer, so communication between devices and users is completely protected;
- Heading – electronic government voting provided a high level of security. This option is already becoming more popular all over the world;
- Message encryption – MAM, as the first extensible IOTA kernel module, provides the ability to exchange information through the Tangle. Encrypted and authenticated channels guarantee security and confidentiality, excluding quantum attacks;
- Rental capacity – it is interesting that the system provides users with the opportunity to rent and lease digital devices and any equipment with the installed chip.
It is interesting – the activity of the system increases in direct proportion to the increase in the number of users of the network. Developers have warned of centralization, which allows to provide reliable protection against hacking and stealing assets.
Prospects of the IOTA Community Project (MIOTA)
Leading experts of the cryptocurrency market positively assess the prospects for developing and expanding the use of IOTA. The highest level of security of the system and a unique core allows users to completely control electronic payments and exclude the possibility of hacking wallets. The underlying technology of the system – Tangle – has no analogs in the world of cryptocurrency at the moment and is very flexible for the implementation of all new ideas. The ratings of the IOTA cryptocurrency in the general market are very high, and the unique functions are very in demand and are relevant at the moment.
FAQs
Is IOTA a Good Investment?
So far, the market cap HICCUP suggests that this crypto remains a good investment to invest in. You can also make trading CFDs on the IOTA platform.
However, please keep in mind that trading CFDs may entail a high risk of losing money rapidly. Retail investor accounts often suffer from this. Therefore, ask for investment advice from your financial adviser before participating in the investment market or play on the crypto exchange.
By the way, let’s say about the storage of crypto. It is most convenient to store it in a wallet: mobile, desktop, or hardware. For small amounts, mobile apps are suitable. If you intend to play on the exchange, we recommend you purchase a hardware wallet. It has much more protection against hacking.
Can IOTA Reach 100 Dollars?
This depends on many factors, such as the volatility of other cryptocurrencies, entering the market new tokens from other companies, stability in the management of the IOTA foundation. For example, in August 2018, the value of the coin decreased by 5 percent due to the fact that one of the leaders decided to leave the company.
It would be too rash to make accurate predictions now, even though the IOTA is still showing steady growth. So far, we can confidently talk about a good potential, but it is difficult to determine the upper limit.
Will IOTA Coin Go Up?
The already accomplished progress of IOTA shows that further growth of the cryptocurrency is quite possible. Relying on a directed acyclic graph instead of Blockchain technology provides this decentralized network with good speed and promises further development.
A system of complex instruments should guarantee IOTA smooth operation. Factors such as fixed supply and the inability to buy new coins also contribute to the price increase. So far, everything is in favor of this relatively new crypto. Most experts believe that the IOTA cryptocurrency is an up-and-coming project for private accounts and retail investor accounts.
How to Get Free IOTA Coin
Nohow. You can get IOTA cryptocurrency only through exchanges. Due to the directed acyclic graph system, you can’t mine these coins like in the Blockchain. There are various apps of crypto exchanges and services through which you can buy IOTA for digital or fiat money, for example, Finance, Gate.io, Itpanda. Before purchasing, do not forget to install a wallet that supports this cryptocurrency.
