What is the IOTA for? IOTA designates both a cryptocurrency, called MIOTA, and an open source protocol forged on an original network: the Tangle. Its creators are not limited to wanting to make it a means of payment, but also a solution authorizing the transfer of all data from one connected machine to another (sector of the Internet of Things, also known as “IoT”). So, want to know everything about IOTA? Follow the guide !
Definition of IOTA
What is IOTA? A open source protocol (protocol whose code is accessible free of charge) which regulates both virtual money financial transactions and data exchanges. His protocol differs from that of other major cryptocurrencies. Why ? Because it is not based on the blockchain. You will not hear about block chains or a mining mechanism to extract the MIOTA.
What is the IOTA Tangle network?
The IOTA network works with technology Tangle which has the similarity to blockchain of being a totally process decentralized. What is the Tangle (interlacing)? A technology that uses the concept of acyclic oriented graph. Big advantage: the elimination of the block validation period. As a result, transaction rates are super fast and even accelerate as the number of network operations increases.
Good to know : to make a free payment via the IOTA network, the user plays the role of validator by carrying out a Proof of Work to validate two Tangle transactions.
Instantaneity is also supplied by the location of the nodes and by the topology (study of the distance, continuity and limit between the nodes). The Tangle is therefore presented as a database distributed, each node recording all transaction histories. The validation of an operation is done on the fly, by a coordinator selected at random. Consequences: the Tangle benefits from scaling properties for high transaction and parallelization speeds.
IOTA and the link with connected objects
The inventors of IOTA quickly linked the technology and the upcoming expansion of the connected objects industry. Their idea: to develop a new grid for transactions. Any connected device with a chip can be used in real time. They can therefore generate billions of micropayments requiring appropriate technology, that is to say scalable and fast.
History of IOTA
The IOTA company was created by Dominik Schiener, Sergey Ivancheglo (who left the group due to tension in the group), David Sønstebø and Sergei Popov, in 2015. The opening of the cryptocurrency in beta-test version to a wider audience materialized a few months later. Initially, a fixed amount of IOTA is established. The purchase of IOTA started peer-to-peer from 2016 over an initial period of eleven months.
It’s not that during the year 2017 get things started with an investment of ten million dollars injected into the IOTA ecosystem by the eponymous foundation. Several objectives are enacted, including the promotion of cooperation with large companies and the deployment of community missions. Finally, proposals to hire developers are undertaken.
IOTA gains fame with its registration with a first market place, Bitfinex. Immediately, a venture capital firm injects more than $ 1 million into IOTA. One of the explanations provided relates to transaction fees: buying IOTA does not include no transaction fees. Building on this dynamic, the Bitfinex exchange platform opens a market dedicated to IOTA June 13, 2017. A MIOTA (IOTA unit) is then worth 0.64 US dollars.
In the process, the IOTA foundation established several partnerships. This is the case with the largest database of missing people in the world, Refunite. The goal: to exploit the IOTA technology so that families scattered geographically due to conflicts can find each other. At the same time, the IOTA, via its Flash network, support of instant micropayments, becomes operational. So, Monster Cleaning, a London-based cleaning company, accepts IOTA as a payment solution.
In November 2017, the IOTA foundation officially becomes a nonprofit organization in the name of German law, the country where it has its headquarters. Development continues with the launch of a real-time data flow buying and selling platform, the architecture of which is based on the Tangle system. An agreement is made with a FinTech Hub (an innovative company that uses technology to improve its financial skills) from Singapore, Lattice80, for the opening of an IoT and IOTA incubator.
IOTA Attracts Investors
Investors are increasingly interested in the IOTA project. So the investment subsidiary of the industrial group Bosch, Robert Bosch Venture Personal-Financial.com, has sat on the advisory committee of the IOTA foundation since 2018. She is joined in 2019 by another industrial heavyweight, Jaguar Land Rover, which announces a collaboration to integrate smart wallets in its vehicles and facilitate the payment of certain transactions for motorists.
And partnership projects are piling up:
- ElaadNL chooses IOTA for its authentication and payment devices electric battery charging stations ;
- Fujitsu selects the IOTA protocol for the data storage and processing aimed at improving industrial and manufacturing production, as well as its supply chain;
- Bosch integrates the IoT data collected by their device into the IOTA marketplace Bosch XDK ;
- Avery dennison (creation of clothes in digital form) and EVRYTHNG (IoT) adopt the IOTA Tangle technology to guarantee traceability of the supply chain for the clothing industry;
- The city of Austin in the United States delegates the engine of its system to the IOTA foundation biometric authentication (fingerprint) for the automated payment of its services.
Advantages and Defects of IOTA
IOTA has strengths that have convinced many investors:
- His scalability;
- Its modularity;
- His inviolability:
- Its free;
- The speed of its transactions;
- His interest in the automotive sector(especially smart cars);
- Its ability to be relatively energy efficient;
- It is now possible to use IOTA in games or applications.
However, the project is hampered by a few drawbacks which it is important to note:
Where to store your IOTA?
Convinced of the dynamics and sustainability of the project, you want to buy IOTA to diversify your investments in cryptoactive? The inevitable question arises IOTA storage . The opportunity to discuss the various possible solutions and to come back to the launch of the official IOTA wallet, called Trinity .
But before storing these IOTAs, you need to buy some first. For that, you can consult our top of the best platforms. You will find there in particular Binance, one of the most famous cryptocurrency exchange platforms in the world , or eToro.
The purchase and exchange platforms do not offer enough security guarantees to let your cryptocurrencies sleep there. So you have to store elsewhere . So let’s distinguish hot wallets, connected wallets, cold wallets, offline wallets. This characteristic is important for the security of your IOTA.
Connected from the Internet, typical hot wallets office wallets(“Desktop wallets”), mobile wallets(“App wallets”) and online wallets (“Web wallets”) are, like exchanges, exposed to computer attacks. It must therefore be used sparingly and deposit small amounts to avoid a disaster.
However, the cold storage(cold storage) on paper or on a USB key is more than recommended for large amounts. Be careful, however, because the compatibility of IOTA and hardware portfolios is reduced to Ledger products only, Nano X and Nano S . At the time of writing, this is not the case with main competitor Trezor. Here, the user retains control of their private keys and the IOTA seed .
Good to know : means of encrypting the private key, the seed of IOTA is unique. It’s a IOTA wallet access key made of 81 characters , trytes (tertiary codes made up of capital letters and the first nine digits).
The Trinity wallet of the IOTA foundation
It was in July 2019 that the IOTA foundation officially launched its wallet Trinitywhose beta version has been in testing for a year. Available on smartphones and computers(Windows, Mac, Linux, Android and iOS), this final version of the IOTA portfolio reveals a more intuitive and user-friendly interface than the previous version. This accounts 160,000 downloadson various platforms, for over $ 1.8 billionof IOTA transactions at the time of writing.
More accessible, therefore, this official IOTA wallet displays more guarantees in terms of security. Thus, the application was examined in detail through an audit process led by the cybersecurity giant SIXGEN. The Trinity wallet is an interesting solution for storing IOTA, whether you are a beginner or a seasoned user, thanks in particular to the graphical representation of the IOTA course, the uninterrupted connection to Tangle provided by automated node management, and an interface. translated into French (and into 25 languages in total).
Good to know : The Trinity wallet is also Bluetooth compatible with Ledger Nano X, in addition to allowing biometric authentication (PIN code, fingerprint) to better protect your IOTA.
Now that you know everything about IOTA, invest with more certainty by going to a cryptocurrency buying platform now! 2020 may well be the year of IOTA.