What is IOTA? Analysis and all you need to know
A digital currency for the Internet of Things (IOT), IOTA is the new backbone of IOT, a scalable, decentralized, modular and no fees platform for Internet of Things to grow and flourish. Although still considered by a few as a lesser known digital currency, IOTA has made quite amark for itself and has even surpassed big names in the digital currency world like Ripple. IOTA is meant to be a digital currency for the exchange of data and information between machines equipped with sensors. These sensor equipped machines populate the entire scene of the Internet of Things. This would enable something that is called a paradigm shift to the Internet of Things. IOTA aims to establish a Ledger of Everything.
Recent market valuation for IOTA
IOTA is currently sitting at a make or break level. It is currently down to about $0.9723 which means that it has finally broken below the $1 mark. If it is eventually broken, IOTA would face a severe downside and is thus currently on critical support. It had made quite a wave a few months back by rising in value however, for quite some of the recent time, IOTA has been trading under a critical resistance for quite a while and is also facing a rising trendline. Accordingly, till the time IOTA is being traded below this line, the bias would always be to sell on the rise.
As already mentioned, IOTA is presently sitting on a critical support which looks like a long term deal and if this long term critical support is broken, it would be catastrophic and would definitely be most probably the end of this digital currency.
It is also important to note here that the current JAVA implementation of IOTA is in Beta stage and with further advancements and improvement there would be even more enhanced performance by it and there will be additional features that would enhance the ease of use of this platform.
The Internet of Things or the IOT market would hit the $470 billion mark by 2020 if experts are to be believed. This means that the prospects for IOTA would increase way up too. Over 3 million transactions have already been processed on the IOTA platform and to imagine the great deal of prospects for this digital currency with the Internet of Things industry rising with such a booming speed, there sure is something really revolutionary when the digital market is looked at at an IOTA angle. Although there is still a long way for the Internet of Things markets and companies to actually make a strong and steady stand in this world and actually making sensor equipped machines the future of the world, IOTA has been constantly bettering itself with more and more developments in the entire space and with every further positive step the IOT industry takes, IOTA as a digital currency for the Internet of Things would definitely not be far behind, one might as well say, that these two could actually become each other’s shadows in the long haul.
Tangle – IOTA Platform
IOTA runs on a new platform called Tangle. It makes use of a data structure known as the Directed Acyclic Graphs or DAGs. Owing to this graphical nature of the entire platform, Tangle basically has no blocks, no chains and thus no miners. The usage of this Tangle solves several issues which are traditionally faced with other digital currencies, like the issue of scalability and high transactional fee charges. The dual work of making a transaction and also validating them is both coupled since the sender is required to do a proof of work for the transaction which actually approves not one but both the transactions.
As a result, like in all other digital currencies where the transaction speed over the network decreases with an increased user base, with IOTA, Tangle enables for the transaction speed over the network to be increased with an increased user base. This means that on Tangle, transaction speed and a larger user base are actually directly proportional to each other and not inversely proportional like it usually is with every other digital currency on the market. This makes it a very characteristic kind of digital currency for the Internet of Things.
Moreover, since the proof of work is done by the sender side of the transaction itself, this proof of work is not required to be done by any miners and which virtually removes any fees to be paid. All these characteristic features have made IOTA a very promising thing of the future which would actually not require developments when the user base of IOTA expands further since it works better with its user base blossoming.
Along with this, Tangle also provides wide scalability features because of the ability to validate transactions parallely. Moreover, there is no limit to how many transactions can be confirmed in a given interval of time thus making it even more better than other digital currencies.