IOTA And The Idea Of The Internet Of Things
IOTA is one of the most interesting cryptocurrencies. It was created to develop the idea of the internet of things and it is not based on blockchain technology. How is this possible?
IOTA – Introduction
The world of cryptocurrencies is very diverse. The projects differ from each other and are created to solve different problems. Sometimes, however, a blockchain-based project is created first and then there are issues found it can solve. But IOTA (MIOTA) is a completely different case. From the very beginning, it was created to develop the idea of the Internet of Things (IoT). Currently, the project solutions are used by many large companies such as Volkswagen, Bosh, Fujitsu or Danish energy giant Energinet.
The tangle is not a blockchain
The first and foremost thing about IOTA everyone should know is that it is not blockchain at all. In terms of network infrastructure, the system is based on the tangle, a directed acyclic graph (DAG) based ledger. The term “tangle” refers to the transaction process and the way how information circulates in the system. Every new transaction must be ‘entangled’ by two previously verified and done parent transactions. The consensus and validation process are made by the entire network, which means every participant has an equal vote. And consequently, the transactions system looks like a huge ramifying tree.
The great advantage of the project is unlimited data growth and total scalability. Another benefit is cybersecurity. We cannot forget that the future development of quantum computers will open up new possibilities of breaking the encryption protocols of classical blockchain-based cryptocurrencies.
The Internet of Things
Nowadays, everyone knows what the idea of the Internet of Things is about. In short, it will combine all electronic devices. Imagine a simple situation. We wake up in the morning, the blinds open automatically, after entering the kitchen, the radio plays and the coffee machine has already made a delicious coffee. But after this operation, the fridge ‘notices’ that milk is running out. It adds the product to the shopping list or maybe it orders delivery by a drone itself. And this is the moment that requires an intelligent payment system, which IOTA tries to develop.
In 2020 the market of IoT is going to be worth about $267 million. Modern energy and electricity management, smart homes are undoubtedly the future. In this area, IOTA has great prospects for development and participation in this dynamically growing market.
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