IOTA is a promising project, the task of which is to unite technology into a single network. Iota cryptocurrency developers are helping to bring smart homes, cities and transportation systems to life.

About the project

Cryptocurrency IOTA heralded a revolution in the digital currency market. The tasks of the creators of this project included the optimization of operations that are carried out in the so-called. "Internet of things" (Internet of things). The Internet of Things is the entire set of technologies that have access to the World Wide Web. The need for such a term has arisen with the proliferation of gadgets that need an Internet connection to work correctly.

Whereas a decade ago access to the network was required for personal computers and advanced smartphones, today devices with a connectivity function are being produced on a large scale. These technologies include:

Smart watch.
Smart Homes.
Vacuum cleaners.
Refrigerators.
TVs.
Thermostats, etc.
The advantage of the Internet of Things is the option of remote control of objects. The information that things transfer to the network is stored in special storages, the owner has access to them. This discovery is important both on a domestic and industrial scale. Thanks to IoT, data is collected from oil platforms, meteorological instruments, etc. The data collected allows you to solve different types of tasks:

Build correlations of meteorological maps with industrial production.
Monitor the performance of city systems.
Process information about the state of agriculture using sensors.
The increase in gadgets leads to the natural need to develop a global network to which they are massively connected. It exchanges data and software, from which it is possible to extract monetary benefits.

IOTA developers began work on their project in 2015, initially taking a course on the Internet for gadgets. It took them a year to create a workable system, which was accompanied by testing alternative versions. A couple of months after the platform was released, the developers launched an ICO. Thanks to crowdfunding, it was possible to attract investments, which were enough to start the project and its advertising.

Iota officially entered the cryptocurrency exchange in the summer of 2017 and was a great success. The "newbie" was immediately supported by the SatoshiPay service, which preferred IOTA to the world-wide popular bitcoin. There are several objective reasons why the micropayment platform chose this cryptocurrency:

Easy to use for small to medium sized transactions.
High level of adaptability.
The option of "crushing" coins, which opens the possibility of making micropayments.
In 2019, developers are working to increase the potential uses of cryptocurrency. They contract with other companies to advance the principles of the Internet of Things. Soon it is planned to release a microprocessor, which will increase the speed of calculating transactions with digital currency.

Opportunities

The concept of Tangle, which is an electronic variation of the accounting journal, was chosen as the basis for the Iota cryptocurrency. The developers believe that in the future it will receive the status of a strong competitor to the "classic" blockchain system. The principles of the accounting journal are based on several points:

Blockchain functions move to directed acyclic graph (DAG). The structure of the graph is represented by a network of transactions.
When a new transaction is added to the network, approval is requested from a pair of previous transactions.
An indirect approval can be an intermediate section that connects two payment points (the first point indirectly approves and confirms the second point).
Nodes of the system check direct and indirect confirmations for non-conformity.
With an increase in direct and indirect confirmation of a transaction, the level of confidence of the system in this operation increases. A hypothetically large number of confirmations reduces the chance of double spending to zero. But in practice, this approach involves its own gaps. There is a theory that after gaining a high level of trust from the network, fraudsters will easily take advantage of them. Such actions can jeopardize the existence of the platform as a whole. During the existence of the network, no such hacker attacks have occurred.

The theoretical vulnerabilities of IOTA are offset by the projects unconditional achievements. These include the following benefits:

Abolition of the commission. High fees are a problem for older cryptocurrency platforms. Iota bypasses this condition by removing intermediaries in the form of miners. Account holders confirm transactions themselves.
Reducing translation times. The abandonment of intermediaries led not only to getting rid of the commission, but also to an increase in the speed of transactions. Processing transactions in real time makes transfers convenient for all users.
No limit on coins. The lack of coins and their exorbitant value is another major problem for older cryptocurrencies. Iota dealt with this factor by generating 2.8 quadrillion coins at a time. This number of coins allows them to be used to pay for micro-transactions.
Purchasing and storing IOTA is carried out on several platforms:

Cryptocurrency exchanges. The high demand for IOTA has ensured the presence of cryptocurrency on the lists of large and small exchanges. In terms of trading volume, the top three are Binance, HitBTC, Bitfinex. For experienced brokers, Iota is suitable as a means of earning money on arbitration.
Cold wallets. The creators of the project provide the Trinity wallet for miners, but its use is fraught with a number of difficulties. The main one is the lack of a fully functional version. The cold wallet is still in beta mode. It is available for download on the IOTA official website.
Brokers. Cryptocurrency trading with the involvement of brokers is mainly based on rate jumps and the ability to make money on its fall. The most popular brokers include Bitmex, FinmaxFX and NordFX.

How is created

IOTA mining does not involve the standard operations that were extended to blockchain networks. The structure of the acyclic graph does not require the presence of miners as such, since the system does not need them. Iota deliberately refuses to divide into persons who mine cryptocurrency, and those who facilitate its transfer from one wallet to another. This approach makes the mining of coins impossible.

The well-known cranes for all miners are also missing. They are called specialized Internet sites that provide registered accounts with cryptocurrency at fixed intervals. But it is too early to draw definitive conclusions about IOTA, as this currency is at the beginning of its journey. Its creators do not exclude the possibility of the emergence of methods of direct or indirect mining.

Only the developers themselves are involved in the creation of coins, who determine their total number. If the user of the platform wants to get the coins of this company, he has only one option - to purchase them on exchanges, brokers or individuals.

To start "mining" the IOTA cryptocurrency, the user downloads a special wallet at www.iota.org. Installation includes several stages:

Selecting an installation file that is suitable for a specific operating system.
Host selection.
Change of language to Russian (or any of the suggested ones).
Creates a key that starts at 62 characters.
Insert the key into the window.
IOTA provides two options for applications - for personal computers and for smartphones. The smartphone app is in beta as developers continue to tweak it.

Is IOTA endless?

IOTA resources remain open. All that analysts know at the moment is the number of coins on the market, which is 2 779 530 283 pieces. However, there is a lack of information on two important topics:

How many coins were sold during the fundraising process for launching a project (ICO).
Have there been “wholesale” sales of coins to private buyers?
Therefore, the official figures that are given on Internet resources remain formal. The assumption that a significant percentage of coins are owned by individuals has its supporters. Within the framework of this theory, it follows that a limited number of people have leverage to manipulate the IOTA rate and the cryptocurrency market.

Iota opacity does not allow an unambiguous answer to the question of whether to invest in the coins of this company and contribute to the development of the project. The future of the platform depends on the path taken by technological progress. If the Internet of Things is supported at the global level, IOTA will be able to claim a leading position in the crypto market. This scenario of the future could lead to a complete rejection of blockchain and mining technologies.

Strengths

The global advantage of IOTA is rethinking the technologies that bitcoin and other older cryptocurrencies were based on. Among the obstacles that the company has successfully overcome are:

Abolition of communities of miners. To work with blockchain networks, miners united in groups to make money on operations with coins more efficiently. The proliferation of communities put the platform at risk of a 51% attack. Iota acts on the cause of the problem and removes the very possibility of such an attack.
Transaction speed limits. Older systems involved more or less translation time. The speed of transactions could not increase above the values that were dictated by technical capabilities. IOTA has moved away from standard network scaling and simplified transactions by reducing its participants.
Uncontrolled growth of databases. Regular transactions led to an avalanche-like growth of information, which sharply raised the question of how to store it. IOTA offers an alternative data encryption method.
Constant growth of commissions. Bitcoin miners are faced with the problem of increasing the percentage of transactions that are paid to intermediaries. The Tangle technology does not issue new coins, and therefore does not need any commission fees.
High value of coins. The high cost of bitcoins is their advantage and disadvantage at the same time. These coins are not suitable for small payments. IOTA offers an option to split its coins, thanks to which you can get the required amount.
Today, the IOTA network gives users the ability to transfer amounts that are equal to 0.001 cents. This means that in the near future, coins will be used to perform everyday tasks: launching technical programs, opening taps, etc.

IOTA in TOP currencies

By the end of 2019, the capitalization of the IOTA cryptocurrency exceeded the $ 1.5 billion mark. Analysts believe that the likelihood of crowding out bitcoins by Tangle technology is high. The main advantage of Iota is its versatility - the currency can be used to conduct large transactions or fast and small payments.

Great prospects in the cryptocurrency market are confirmed by the number of contracts that the company has concluded in recent years:

IOTA is participating in a five-year smart city project. Within its framework, technologies aimed at energy conservation are being developed in 7 cities of the European Union.
Refunite Database decides to migrate to IOTA.
The fund Robert Bosch Venture Capital GmbH becomes the investor of the project.
Jaguar is moving to smart contracts based on technology developed by IOTA. In the future, the company plans to create an analogue of a smart wallet for cars.
Global manufacturer Avery Dennison Corporatio enters into partnership with IOTA.
Now Iota is in 20th place in the rating of cryptocurrencies from Invest Rating. The cryptocurrency rate is notable for its stability, which allows it to maintain positions.