Future of IOTA cryptocurrency. The benefits of Tangle over Blockchain
The IOTA cryptocurrency (see IOTA chart online) has appeared only recently, but quickly approached the major digital currencies of Bitcoin, Efirium and Lightcoin in terms of capitalization. By the beginning of 2018, it is in fifth place with more than $12 billion. The rapid growth of IOTA price has no precedents even among cryptocurrencies. What is the reason for such popularity, and what are the prospects for the development of this coin?
Read it too:
- “Cryptocurrencies with huge growth potential in 2018. Part one. Monero, Ripple and Dash.”
- “Cryptocurrencies with huge growth potential in 2018. Part two. NEO, Stellar Lumens, Zcash
- “How easy it is to invest in Bitcoin on Forex?”
- “How easy is it to trade Crypto-currency at the Forex market?”
- “What happens to Bitcoin in 2018?”
What is it? What is it? IOTA?
The name of the cryptocurrency contains the meaning of its purpose. It will serve as a means of payment on the Internet of Things. IOT is the English acronym for InternetOfThings.
Project concept
Before finding out what an IOTA cryptocurrency is, one should understand the meaning of the term “Internet of Things”. Nowadays, new technologies appear literally every day. Normal household appliances, life support systems (electricity, water, gas, communication, etc.) are equipped with their own software. There are already smart TVs, fridges, robotic vacuum cleaners and other devices. The “Smart House” and even “Smart City” systems are being successfully developed. All these devices can not only work on their own programs, but also interact with each other on the Internet.The “Internetofthings” computer network unites physical objects with computer control by a special technology. The same network has access to the external environment. This means that you can monitor and control your machinery and systems from any computer device connected to the Internet. The number of “smart” devices is constantly growing. It is predicted that by 2020 they will be about 20 billion. All of them are potential members of the Internetofthings network, which will be provided by the IOTA system.But this fantastic prospect has many obstacles. One of them is the microtransactions that the devices connected to the Internet of Things must perform with each other. The IOTA system allows you to make transactions free of charge, secure, not depending on the number of participants, easy enough to integrate into the sensor devices.
History of creation
The IOTA project was founded by a group of cryptocurrency experts. The group is led by David Sonstebeu, a business and technology expert. Candidate of Sciences Sergey Popov created a mathematical model of the platform, and programmers Dominique Shiner and Sergey Ivancheglo designed the computer code. The IOTA Foundation, a non-profit organization registered in Germany, was established to finance the project. Funds were raised during December 2014. A total of 1,337 bitcoins were involved in the development of the project.At the beginning of 2015, all IOTA tokens were created and distributed among investors, including the IOTA Foundation. The total amount of coins, which will never increase or decrease, was 2777530282777761, that is more than 2.77 quadrillion. Such a sum is conditioned by mathematical properties of the ternary model of calculations.Beta-testing of the system began in July 2016, and trading in cryptocurrency began at Bitfinex in June 2017. The initial price of one million units of cryptocurrency was $0.63 and was indicated by a MIOTA ticket. A huge number of coins predetermined high capitalization, and the new cryptocurrency quickly approached the leaders of digital money.During the summer and early autumn of 2017, the price of the MIOTA coin ranged from $0.15 to $1.2. And in November, the cryptocurrency rose sharply due to contracts with Microsoft and Samsung. The rate has risen above $4, and by capitalization IOTA is on the fifth or sixth place. In December 2017, the cryptocurrency is traded on thirteen exchanges.
The benefits of Tangle versus Blockchain
Most modern cryptocurrencies use blockchain technology to conduct transactions. The IOTA developers came up with a model called Tangle. It has a completely different hierarchy and structure of the entire network. IOTA uses a software protocol that is fundamentally different from the Blockchain protocol. High bandwidth is achieved by parallel processing of transactions. IOTA’s cryptocurrency features include
- No commissions
- Transaction rate
- Decentralization.
In a block chain, transactions are confirmed through a strict mechanism that separates users and miners. The increase in the number of payments complicates the processing and lengthens the time of their execution. Micro-payments in classical cryptocurrencies are not profitable because of high commissions and long confirmation time. In the Tangle model, miners and users are not separated. In order to perform its transaction, a user just needs to confirm two other transactions by performing simple work.The Tangle protocol does not require powerful hardware to confirm the transaction, just a simple smartphone. Even if the computer device does not have sufficient power, it can transfer the processing to another device in the network. Confirmation work is a payment for your own transaction, making it possible to transfer money, including micro-payments, without any fees.Unlike blockchain, the Tangle system reduces the time to process transactions as the number of transactions increases. This is due to the fact that there are more users ready to confirm payments. In addition, the processing uses a ternary (ternary) model of calculations, easier and faster cryptography.The Tangle system does not need to synchronize the participant with the entire network, as in blockchain. Users can group together in enough cells to validate transactions and even calculate IOTA coins off the global network.
Prospects and forecast of IOTA development in 2018
The IOTA system is now being tested by many electronics and software manufacturers. Guarantee of successful development of the project can be considered the fact that the idea of the development team is interesting and necessary for a wide range of consumers. Although IOTA was developed for the Internet of Things, its properties can be used for an infinite number of tasks.Rapid growth of the price of cryptocurrency is ensured by the success of developers. Thus, the first version of the application was recently launched to increase the anonymity of the Mixer. At the end of November 2017, it was announced the launch of a public data marketplace for the Internet of Things. This site will provide access to these devices in the energy, manufacturing, healthcare, smart cities, supply chains and the like.Such plans also predetermine the financial success of the project. More and more exchanges are adding the IOTA token to their listings. We are convinced that many of the Russian Forex brokers in our rating, who already offer Bitcoin trading, will soon include IOTA in the list of trading instruments. It is safe to say that investments in IOTA coins will bring profit in the near future.The updated IOTA platform will be presented at the beginning of 2018. The update takes into account the proposals of the largest companies in the Internet technology sector. The results of the presentation can have a significant impact on the price of the cryptocurrency. Support for large corporations and concrete plans to implement IOTA in Internet of Things devices will raise the cost of the coin. At the moment, trading on Forex with an IOTA coin is possible only with an Alpari broker, the reviews of which must be read before opening an account.
Read it too:
- “Cryptocurrencies with huge growth potential in 2018. Part one. Monero, Ripple and Dash.”
- “Cryptocurrencies with huge growth potential in 2018. Part two. NEO, Stellar Lumens, Zcash
- “How easy it is to invest in Bitcoin on Forex?”
- “How easy is it to trade Crypto-currency at the Forex market?”
- “What happens to Bitcoin in 2018?”
Brokers who have cryptocurrency trading available
- XM.com
- Etoro
- Plus500
- Instaforex
- FXTM
In conclusion, be sure to see the first IOTA presentation by its founder, Dominik Shiner, held in Amsterdam just 2 months ago, in October 2017. At the time, MIOTA was worth $0.4. (The video is in English, so for those who don’t know, turn on the subtitles.) After only a few days of performance, the IOTA rally started and ended with reaching the level of 5.5 USD, bringing the capitalization of IOTA to the 5th place in the rating of all cryptocurrencies.