Cryptocurrencies

Opinion on IOTA, the Bitcoin of the Internet of Things? – Cryptocurrencies

Discover our opinion on IOTA

It is estimated that all existing cryptocurrencies are inspired by Bitcoin and that they all have a blockchain (a list of all completed transaction blocks) as support. But have you ever thought of an electronic money based on a different architecture from blockchains? It seems impossible at first glance, but such an architecture exists as well as its electronic money. The IOTA cryptocurrency is indeed different from its peers. It is based on the Tangle which is itself based on an architecture called DAG (Directed Acyclic Graph), different from the blockchain. What are the special features of this currency? How does this new architecture work and what is its objective? We will go over these questions to give you our opinion on IOTA.

Learn more about the IOTA project

IOTA is not a project like the others. To understand IOTA in order to better define your investment strategy, you need to have some important details.

What is the Tangle?

Thanks to the IOTA Tangle, no need for a blockchain to validate transactions

The Tangle is for IOTA what constitutes the Bitcoin blockchain.

Like the blockchain, it belongs to the family of DLT (Distributed Ledge Technologies), i.e. distributed registers. But unlike blockchain, this new architecture does not contain neither block nor chain.

Designed specifically for the development of IOTA, it is a new architecture based on a Acyclic oriented graph (DAG in English). The major difference is in how consensus is achieved.

he there is no longer a distinction between simple users and validators who are minors. All users participate in the transaction validation process.

The use of the network for a transaction is subject to the validation of two other transactions by the sender. This solves the problems of scalability (ability to adapt to a change in size of demand), security and of transaction fees related to blockchain. The more transactions on Tangle, the higher the probability for a transaction to be validated. Since everyone participates in the network, there is no no charges transaction.

What is IOTA?

What is the IOTA project?

IOTA is an acronym which means Internet Of Things Application (the Internet of Things app). It designates not only a platform, but also its cryptocurrency.

As seen above, its operation is based on the Tangle. Launched by David Sønstebø, Dominik Schiener, Serguei Popov and Sergey Ivancheglo (which is no longer part of the foundation following an argument), the purpose of IOTA is to serve as a network ofexchange and of storage for the connected objects.

By analogy to Bitcoin, which is a peer-to-peer (P2P) network, it is a network machine-to-machine (M2M). For example, IOTA aims to allow your connected fridge to exchange directly with your supermarket computer to order and pay for the purchase of drinks.

How to take advantage of the IOTA platform and cryptocurrency?

How to buy and use IOTA?

IOTA tokens, whose acronym is MIOTA cannot be mined and all have already been sold at the launch of the platform.

You can buy tokens on a exchange market. For more information, we invite you to consult our list of the best purchasing platforms.

However, remember that you cannot directly exchange euros or dollars for MIOTA on all these platforms. On some, such as Binance, you will first need to buy Bitcoins or Ethers which you will then exchange for IOTAs.

Once purchased, these tokens constitute a store of value that you can sell following fluctuations in the price of IOTA in order to make profits.

With its innovative technology, IOTA is a cryptocurrency rather attractive. The Tangle makes it possible to reach a very high transaction speed, a security and an scalability endlessly that many economic sectors can exploit.

It finds its application in particular in the automotive sector with the advent of smart cars.

IOTA could become the main network where these ultra-connected vehicles will be able to obtain their own electricity for their batteries, pay toll or parking fees directly from their IOTA portfolio. For that, IOTA is already in partnership with several manufacturers vehicles for future projects.

IOTA also opens the door to emergence of a data market. Connected objects will be able to buy or sell data and settle their transactions in IOTA. Other area like logistics, the territorial administration or health will also be able to take advantage of this revolution.

What are the advantages and limitations of IOTA?

Let’s now see together the advantages that an investment in the IOTA project could bring you, but also the disadvantages

Benefits

What are the advantages of buying IOTA?

For lovers of innovation, IOTA offers several benefits :

  • Whether by its architecture or its field of use (the Internet of Things), IOTA presents itself as the forerunner of a new era and a web revolution;
  • IOTA positions itself on a connected objects market which weighs several billion and which remains in full expansion;
  • The Tangle offers the network a scalability with infinite potential;
  • A fairly scalable network whose security and theefficiency improve with the number of participants;
  • Many projects and partnerships with large international companies.

Did you know ? The Internet of Connected Objects (Internet of Things or IoT) is booming. According to some studies, it should reach 1100 billion dollars by 2025.

Disadvantages

What are the limits of IOTA?

Despite all its advantages, IOTA presents some limits :

  • Failure to rely on a blockchain does not reassure;
  • Centralization concerns cryptocurrency;
  • The system remains vulnerable faced with an attack by 34%.

To note : In order to overcome security issues, including 34% attack, the creators of IOTA have set up a coordinator whose operator is the IOTA foundation itself. Its role is to keep the network balanced and on when the transaction volume is low.

What do we think about IOTA?

IOTA constitutes a real innovation in the world of cryptocurrencies. Its architecture called Tangle is very different from blockchain by its performance, its very strong scalability and its security. Even if the validation process and its vulnerability to a 34% attack are often put forward as limits, the network shows good prospects for the future. This is at least what should be retained from forecasts on the market for connected objects for the years to come. This new platform and its cryptocurrency provide investment opportunities for anyone looking forward to the future. Large groups such as Bosch and BMW have already seen the potential of this platform and are already building good partnerships with the IOTA foundation.

True cryptocurrency of the Internet of connected objects, IOTA aims to immerse us in a new dimension of the Web, that of Web 3.0. With IOTA, machines could develop autonomy. This network has convincing arguments to also appeal to individuals. If our opinion on IOTA interested you and you want to learn more about the project, do not hesitate to see what the foundation plans for 2020.

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