IOTA: History And Future of the Unique Cryptocurrency
IOTA is a rather unique project that aims to implement the concept of Internet of Things. IOTA offers not only quick payments, but also small ones. Small, tiny transactions that are not reasonable and efficient to make with Bitcoin and many other cryptocurrencies. In addition, IOTA seeks to integrate all smart devices, from radars on roads and smart houses, to gadgets and microwave ovens within a single network. The security of this network is based on a distributed ledger technology that has no blocks, a "blockless blockchain" - Tangle. But wait a minute, what's the Internet of Things? This term appeared at the very end of the 20th century. Internet of Things is the concept of a computer network of physical objects (vehicles, home appliances, industrial machines, communication devices, etc.) with embedded technologies (sensors, detectors, chips, etc.) that enable them to interact with each other and the environment. In a nutshell, it is a group of devices connected to each other, that can totally automize any process. Cloud computing, software-configurable and wireless networks, inter-machine interaction technologies - all these things are actively pushing us to the to the automatic and coordinated operation of the system of Internet of Things. Now let's take a look at Tangle. In fact, this is a special "account book", based on the mathematical concept of DAG - directed acyclic graph. In most cryptocurrencies the information about transactions is recorded in blocks of the blockchain. IOTA's Tangle does not use blocks. Transactions are recorded in a special way, so that each new transaction (A) confirms the two previous ones (B and C). This verification can also be indirect - transaction D appeared and verified A and E. In this case transaction D also indirectly confirmed B and C. Here the key difference from other blockchains is that the more transactions are there in the network, the faster they are processed - something what Bitcoin and Ethereum would dream about. The IOTA project held an ICO in 2015 and collected a little less than 1,500 bitcoins - not so much back than. It was not yet the time of a rapid tokensales expansion and attention of the cryptocommunity was mainly drawn to Ethereum ICO. The developers - David Sønstebø, Sergey Ivancheglo, Dominik Shiner and Sergei Popov - decided to issue 2 779 530 283 MIOTA coins. Mining is not provided in the IOTA system, which is not so common for digital currencies. Only few of them, like Ripple, NXT or Waves do not provide mining. The next year the project was having beta testings, and in 2017 it finally started working and managed to attract first direct investment. In addition, early in winter 2017, when Bitcoin scalability problem became a hot issue, the English-German operator of micropayments called SatoshiPay announced it was going to use IOTA instead, which perfectly fitted for small and even tiny payments. In summer, coins were listed on Bitfinex, and in autumn the project management made a number of deals with companies like Samsung, Fujitsu, Volkswagen, Microsoft and Deutsche Telekom. Besides, IOTA Foundation was created in Germany in order to develop the project and the concept of Internet of Things. Today IOTA is among top-10 virtual currencies and, unlike many “neighbours”, it costs a bit more than $2. What's ahead? Well, no one can say for sure. Of course, IOTA is significantly less popular than top-digital currencies like Bitcoin, Ethereum or Ripple, but it has its really unique idea and technology which has already led the cryptocurrency to a certain success. Internet of Things is developing pretty fast and the network of connected devices expands rapidly. IOTA can potentially become (and started to do so) a perfect financial tool for machine-to-machine economy. Anyway, let's see, what will happen in the long term. Subscribe to The Coin Shark news in Twitter: