The internet of things is already a force to be reckoned with worldwide. However, IOTA coin may be able to make it even better. The Internet of Things in simple terms refers to internet connectivity between countless devices that allow the sharing and collecting of data. But what if it could go beyond that? Let’s find out if this is possible with the IOTA coin.
What is IOTA
IOTA is an abbreviation for the Internet of Things Application. The IOTA coin is a kind of cryptocurrency technology whose sole purpose is to improve certain aspects of the IoT. Following are some of the basics of IOTA;
1. With IOTA you can carry out your transactions offline as well, which is a handy advantage when there is no internet connectivity on issues with connection.
2. IOTA is a cryptocurrency token that attempts to combine blockchain technology and the Internet of Things.
3. All transactions are free for users on IOTA.
4. The IOTA technology encourages the worldwide adoption of IoT by allowing the IoT devices to transact among themselves.
How does IOTA work?
The founders of IOTA believe that blockchain technology is not competent enough to hold up IoT transactions, and they had this in mind when they were creating IOTA. The IoT has so many transactions going on at a time; this means that for the industry to develop and be more useful, there needs to be a better and more efficient way of sharing and distributing resources. The devices are better off buying bandwidth, storage, electricity, and data only when they want to use them, and when they don’t know they sell it off. Which brings us to the vision and purpose of IOTA.
What is the purpose of IOTA?
IOTA’s goal revolves mainly around Machine-to-Machine transactions which drastically differentiates it from other cryptocurrencies. The IOTA coin was created solely to cater to the IoT, and its development team likes to think that it could be the backbone of IoT. The IOTA coin intends to offer distributed ledger technology to the IoT devices. Nevertheless, this public ledger works differently from the one in the blockchain structure, and it goes by the name “ The Tangle.”
The Tangle is basically a chain of transactions that are connected and are stored via a decentralized network of node partakers. How the Tangle works are; every device that wants to submit a transaction has to verify two other transactions on the same network first before proceeding. The verifying device has to perform a minor proof of work for each verification which will link all the transactions into the Tangle.
So the Tangle is more or less a network of verifications (of the IOTA coin) that will lead to an overall consensus. Every transaction conducts verification of two other transactions and will be linked to them, and in future, the same transaction will be verified as well and be linked to its verifier. Hence the blockchain is no longer necessary, and the scalability problem is solved.
We must acknowledge that the blockchain technology has been great on its own. With decentralized networks, peer to peer transactions and so on. However, it does have some flaws that hold it back from reaching its full potential. IOTA coin is here to fill that void; and as I believe it has extraordinary features that will do that without fail. This was just an introduction to the great IOTA coin I believe there are so many more developments to come.
We will keep you updated!