What are the characteristics of IOTA?
IOTA is a distributed accounting (payment) network which uses a blockless DAG technology (it doesn’t use a blockchain), which allows the network to operate without transaction fees or a without a limit to the number of transactions.
Transactions within the IOTA network are not verified by miners but by users themselves. When sending a transaction, the sender’s computer processes and verifies two different transactions. For this reason, no transaction fees are charged and the network does not have a limit to the number of transactions per second. This makes it suitable for microtransactions and thus an excellent accounting unit in the internet of things (for example, your smart car will pay for charging with the IOTA cryptocurrency in the IOTA network and you won’t have to worry about any of it). At the same time, the network is designed so that offline transactions can be made as well (that is, it takes into account the option that internet connection won’t always be available).
Operating principle of IOTA
While the blocks in the blockchain are lined up one after another, the IOTA cryptocurrency functions differently: when carrying out a transaction, the user verifies two other transactions (in the image, transactions are depicted from right to left). If you zoom in, you will notice that two darts always lead from the black rectangles on the right edge to other rectangles. These darts represent transactions, and the process continues in this manners into the „past“ (from right to left). This principle is what ensures the network’s resistance to attacks by using quantum computers, since the network’s resistance is not tied to the computing power of miners.
History of IOTA
As cryptocurrencies evolved, their first „childhood illnesses“ started emerging. For example, with the increasing number of users, the speed of transactions decreased and the size of the blockchain increased, and this placed higher demands on data warehouses etc. Several developers realized this in 2015 and they created the IOTA network which was supposed to solve these issues. It is a second-generation network, optimized for using in the internet of things. A digital currency (token) serves as the means of payment within the IOTA network, and it is called IOT.
Number of IOTA coins
The symbol of this unit is IOT. There are 2,779,530,283,277,761 overall (nearly 3 quadrillions) and they are not divisible. All of them have been pre-mined. It is an extremely large number, but it is adapted specifically for carrying out billions of microtransactions in the future network of the internet of things. Multiples of the coin are used for simplification purposes. Typically, a multiplication of 1,000,000 is used at a cryptocurrency exchange, and this multiple is called MIOTA. For example, if you buy 5 MIOTA, it means that you own 5,000,000 IOT.
All time high: 5,69 USD (19th of December 2017).
The future of IOTA
The network is perfectly adapted for a future use in the internet of things (billions of connected devices via the 5G network), and many of these capable of carrying out transactions (for example, make regular automatic payments). This corresponds not only with the high number of its units (coins), but also with the architecture on which it is built and which is, due to its foundations, resistant to the „51%“ attack or quantum computers. With the development of the 5G networks, further development of the IOTA network can be anticipated as well. The network continues to develop and it has ambitions to function within healthcare as well. We should also mention that is collaborates with Microsoft, Samsung, Bosch, Porsche, Jaguar, and other companies.
For purchase of IOTA (MIOTA) you can use the cryptocurrency exchange Binance which allows you to purchase by exchanging Bitcoin for MIOTA. Binance also allow buy cryptocurrencies up to 2,500 USD without identity verification.
If you are planning on storing MIOTA in a hardware wallet, use only the ones of the wallets pictured below.