What is IOTA?
What is IOTA and the Internet of Things (IoT)? How does IOTA work? What are the advantages of IOTA? Where to buy IOTA? How to store IOTA cryptocurrency?
Now there are more and more devices that can be controlled via the Internet or Bluetooth. This was made possible thanks to the Internet of Things (IoT) technology.
If you have experience with similar devices, you may have noticed that they have one common drawback. Since they are produced by different manufacturers, not all of them can work together.
IOTA is a project that aims to solve this problem. Linking all types of IoT devices together creates a network of devices that can process transactions at lightning speed. In this article, we will talk about what IOTA and the Internet of Things (IoT) are, how IOTA works, where you can buy IOTA and how much the IOTA cryptocurrency costs.
If you have not yet chosen an exchange for trading cryptocurrency, then we recommend Binance – the most popular and reliable crypto exchange in the world.
What is IOTA?
IOTA is a project focused on the Internet of Things (IoT). Examples of the Internet of Things are, for example, smart homes, in which a large amount of equipment is connected to the Internet. The thermostat for heating devices maintains the required temperature when you are at home, and when you are not, it saves energy. The washing machine can be turned on remotely, and the refrigerator can shop on its own in the online store. There are also smart curtains, smart dishwashers, smart lamps, smart door locks, and more.
To control these devices, you first need to connect them to a Wi-Fi network. The problem is that each device has its own communication standard. Sometimes it can be difficult to get devices to work together if they use different standards. Thus, data exchange should be much more efficient so that you can it was easy to set up a home network of smart devices. The team behind IOTA wants to contribute to this.
Who developed IOTA?
IOTA was founded in 2015 by David Sonstebo (Norway), Dominik Shiner (Italy), Sergey Popov (Russia) and Serge Ivancheglo (Belarus). At the moment, the IOTA team has more than 100 people, each of whom has their own specialties.
See also, what is Dogecoin?
How does IOTA work?
IOTA does not have a blockchain. Instead of blockchain, IOTA uses another technology called DAG (Directed Acyclic Graph), which aims to improve communication between IoT devices. Since IOTA does not use blockchain technology, it does not have the problems that most blockchains have, such as scalability. IOTA also uses Tangle technology, thanks to which all transactions in the IOTA network can be processed quickly in unlimited quantities.
It is noteworthy that IOTA will work more and more safely and efficiently the more nodes are added to the network. With many blockchains, this can cause problems when the network gets too big because it can slow down the speed. Another reason why the network is fast is that there are no miners checking transactions. This also means that less energy is required to verify transactions.
At the same time, a modified version of Proof of Work (POW) is used. This algorithm does not require costs or commissions, and at the same time it consumes much less energy. Users do not compete with each other for who will approve transactions first. This makes it possible to connect to the network with almost any device. Unlike bitcoin, where you need powerful computers to participate in mining new blocks.
Advantages of IOTA
- No direct costs. You pay for electricity costs only if you need to independently confirm transactions. There are no fixed transaction costs that you have to pay to the network, as is the case with blockchains.
- Scalability. The more transactions are completed, the better the network will work. Can you imagine that the same thing will happen with Bitcoin or Ethereum? These blockchains have been struggling with similar problems for years. In addition, transactions on the IOTA network are also processed at lightning speed. This is because the network is quite large. The more people use it, the faster transactions are processed.
- No powerful hardware is required to work on the network. This means that almost everyone can connect to the network. With other blockchains, you often need powerful hardware, which is usually very expensive. In addition, there are high energy costs.
- Decentralization. Anyone in the world can participate in the project and confirm transactions. Of course, there are projects that are even more decentralized, only they use a completely different technology than IOTA.
See also what the metaverse is.
What is a MIOTA token?
The MIOTA token is a unit of value in the IOTA network. There are 2,779,530,283 (2.8 trillion) IOTA coins in total. Mining is not used, so it will always be the same the number of active coins. This is a very large amount, so IOTA coins are sold for a million units. As with other cryptocurrencies, MIOTA tokens can be bought and sold, earning on the difference in exchange rates.
According to an analysis by Statista, the Internet of Things market is expected to reach approximately $1.6 trillion by 2025. In 2017, companies engaged in Internet of Things technologies received revenue of $ 100 billion. You can imagine what this could mean for IOTA.
In the automotive industry, the IOTA cryptocurrency is used to pay for smart billing services without a transaction fee. In addition, the smartwatch uses IOTA technology, which allows you to reduce insurance costs by keeping people physically fit. In the energy sector, IOTA helps to decentralize electric networks and thus avoid a complete network failure.
From this point of view, IOTA can become a big project in the future, which means that the MIOTA cryptocurrency can also be a great investment.
Where can I buy IOTA?
At the moment, it is not possible to buy MIOTA directly. Therefore, it is best to switch to a cryptocurrency exchange. Fortunately, there are many different exchanges that offer this coin, as it is a popular cryptocurrency.
We recommend using Binance, because this exchange is safe, it has high liquidity, so you can buy and sell these coins at the best price.
If you want to trade on the decline of the IOTA exchange rate, then you can use brokers with cryptocurrency trading that support this coin. Thanks to CFD contracts for cryptocurrency, you can earn both on the growth of the IOTA price and on its fall, even without having these coins available. And with the help of leverage provided by the broker, you myou will be able to increase your profit on transactions at times.
How to store the MIOTA token?
You can store MIOTA in a physical cryptocurrency wallet, also called a hardware or cold wallet. This storage method is very secure, as it protects you from hacking. Of the hardware wallets in which the MIOTA token can be stored, we can recommend Ledger Nano S, Ledger Nano X and Trezor. Finally, you can also store your MIOTA token in a crypto exchange hot wallet, for example, in a Binance wallet.
What is the price of IOTA?
Before you buy IOTA, you need to know the price. You can view the price of IOTA on the crypto exchange that you use to buy tokens, as well as on special sites, for example, CoinMarketCap.com .
See also the best mobile crypto wallets.
We all want to connect as many devices to the Internet as possible, because it is very convenient to remotely control certain devices in your home. However, many devices are not designed to work together. IOTA is a project that will change that.
IOTA is a special crypto project with great potential. It does not use blockchain technology, hence there are no active miners or validators who verify transactions. They are confirmed by users who want to complete the transaction themselves. Each user will have to confirm the last two transactions before they can complete the transaction themselves.
The main advantage of IOTA is that it is an extremely fast network in which users practically do not need to pay any transaction costs. One of the disadvantages is that IOTA is a fairly centralized project. There is a large node that controls everything. You can compare this to a bank or a government that also controls all transactions made through the bank.
The goal of IOTA is to improve communication between IoT devices while reducing energy consumption and costs. Therefore, this project was of great interest from the very beginning, as were the MIOTA coins. Almost immediately after the launch, the project got into the TOP 100 crypto projects, and for a long time it was even in the TOP 20.
Thus, investing in the MIOTA token can be quite profitable in the future.
Read also the article "What is Cardano?".