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Everything you need to know about IOTA coin

Cryptocurrency markets are on the rise today, as more and more people join them.  You probably came across a number of cryptocurrencies that made the headlines in past few weeks. Some of them might even grabbed your attention. If the cryptocurrency IOTA wasn’t one of them, maybe it should have been.

What is ITOA?

If you are wondering if IOTA is along the lines of bitcoin, or if it has the same concept based on the blockchain ledger, your questions will soon be answered.

IOTA coin is anything but complex, it is one of many internet of things application. It is a new cryptocurrency such as bitcoin, But is different in many basic ways.

IOTA – ranked 9 on Coinmarketcap.

 IOTA - ranked 9 on Coinmarketcap

IOTA tokens can be used like any other cryptocurrency, but the protocol of IOTA was created and designed specifically for use on connected devices. Organizations collect vast amounts of raw data from gadgets, weather sensors and such. But most of the information gathered is not being used. Sitting in databases, while it can create a source of income for its owners.

IOTA coin is anything but complex, it is one of many internet of things application. It is a new cryptocurrency such as bitcoin, But is different in many basic ways.

IOTA’s platform can manage this in two ways, says co founder David Sønstebø. First, IOTA system assure the integrity of this data by securing it in a tamper proof decentralized ledger. Second , it enables the system to operate without fees on any transaction between the owners of the data and anyone who wants to buy it.

As we all know Bitcoin uses the blockchain, IOTA on the other hand uses “tangle”. “Tangle” is a system based on a mathematical concept called directed acyclic graph.

IOTA does not need miners to operate. Instead, when a user of the system issues a transaction, that individual also validates two randomly selected previous transactions, each of which refer to two other previous transactions, and so on. As Sønstebø says, As new transactions mount, “tangled web of confirmation” grows.

IOTA / USD yearly graph (worldcoinindex)

IOTA / USD yearly graph (worldcoinindex)

On the blockchain Miners verify the transactions, and this approach has recently cost as much as 40$ per a Bitcoin transaction. The more demand the higher the fee. It is an inefficient way to operate at the scale required for the internet of things.

 “Even if IOTA wont replace the bitcoin, It might open a window for new and exciting features in the future. “
Should I buy IOTA?

All of the above sounds great, but IOTA is still in “very early stage beta”, according to Sønstebø. Microsoft, Deutsche Telekom, and Fujitsu are all participating in its data market pilot, which suggest ITOA might be on to something. IOTA keeps perfecting their design, they just recently patched a big security problem. They hired a third party firm to help them continue to develop the system security.

Even if IOTA wont replace the bitcoin, It might open a window for new and exciting features in the future.

For more information and buying IOTA read this next post