How IOTA’s ‘beyond blockchain’ tech can be applied from mobility to agriculture
IOTA Foundation, a non-profit organization, aims to build a standard for industries. IOTA is a protocol for machines and it basically enables two things — firstly, micropayments, where one machine can pay another machine; and secondly, data security — with IOTA data can be put in IOTA tangle which can never be changed, making it immutable giving rise to many interesting security applications.
Beyond the Blockchain
IOTA is ‘beyond the blockchain’ as put by one IOTA Foundation co-founder Dominik Schiener. It is based on Tangle and can be applied to various industries like mobility. The team, Schiener explains, is working on a carry wallet so that the car will have an IOTA wallet where it can make payments to an infrastructure or other vehicles.
IOTA technology also has applications in agriculture. A weather station set up on the field can securely collect weather data and more importantly, the farmer can sell the data, creating a business model for him.
How IOTA (MIOTA) plans to revolutionize the Internet of Things
The IOTA Foundation aims to enable a permission-less ecosystem. The crypto company aims to enable almost fee-less instant micropayments. IOTA’s cryptocurrency MIOTA is considerably different from other coins in the market, especially when it comes to transaction fees. IOTA ensures that you can fulfil even the smallest of tasks in the unified network. For example, you could turn off the tap in the bathroom, stick on a tag, or even blow away a speck of dust.
And because of these incredible features, IOTA can be integrated into the Internet of Things by performing transactions between points. Unlike Bitcoin, Ethereum and other cryptocurrencies, IOTA is not based on Blockchain Technology. It is based on Distributed Ledger technology, uses a special Tangle log, based on the DAG-directed acyclic graph.
IOTA claims to offer four major benefits over other coins
- Decentralization- While a lot of blockchain-based currencies have miners who process the transactions, IOTA [MIOTA]is somewhat a true decentralized currency. Rather than miners confirming the transactions on the blockchain, every participant wanting to make a transaction has to approve 2 past transactions.
- Scalability- Scalability is one of the major problems with Bitcoin and many other digital currencies. With IOTA, the transaction validation is done parallelly without any limits on the total number of transactions that can be processed within a specific time period. As a result, the IOTA network is highly scalable and the transaction speed increases as the user’s increase which is exactly opposite to Bitcoin.
- Quantum-immunity- Curl, a newly designed hash function is used by IOTA. As the hash uses Winternitz signatures, the algorithms of the cryptocurrency are protected from quantum attacks. The same is not true for Bitcoin.
- Transaction fee- As there are no miners to process the transactions, the transaction fee with IOTA is zero. The high transaction fee of Bitcoin is another major issue which is effectively resolved by IOTA.
All the benefits definitely make IOTA a powerful cryptocurrency with exceptional potential. As the currency revolves around IoT which is rightfully dubbed as the future, it can be the next big cryptocurrency.
While all of this sound pretty impressive, what does the IOTA token does in the process? Apart from the project being great, the token should also play a crucial role in the project for it to increase in value.
What is the Use of MIOTA Token?
As mentioned above, MIOTA is a currency for IoT. It is created for IoT devices which can use the MIOTA token for making micro-transactions with other IoT devices. As per a Statista report, there will be more than 31 billion IoT devices by 2020 and the number can reach around 75 billion by 2025. The massive rise in the number of connected devices is what the IOTA project is banking upon.
But apart from micro-payments between IoT devices with zero transaction fees, there are many different ways in which the MIOTA tokens can be used. For instance, a popular online news portal can start charging small amounts in MIOTA to people who want to access particular articles rather than charging a monthly subscription.
Similarly, you can build an e-commerce store and rather than using banking services or PayPal, you can replace the payment system with IOTA. Just like this, there are endless ways in which the tokens can be used. As the tokens will get more popular, their value should start rising too as there is only a limited supply of 2,779,530,283,227,761 IOTA. While the supply seems huge, try to imagine the billions of IoT devices using the tokens and the innumerable ways in which they can be used apart from micro-payments.
History of IOTA [MIOTA]
The crypto company was founded in 2015 by four founders, David Sonstebo (serial entrepreneur), Sergey Ivancheglo (CEO of Jinn and lead developer of NXT), Dominik Scheiner (aspiring entrepreneur) and Serguei Popov (math wizard with a PhD in math and currently a full-time professor at IMECC-UNICAMP in Brazil).
Untangled, an unofficial blog also has a list of all the lead developers, researchers, and mathematicians. All the MIOTA tokens were sold through a crowdsale in December 2015 and it raised more than $500,000 in Bitcoin. Unlike most other ICOs, the founders of IOTA did not pre-mine the tokens. This means that they did not keep any tokens for themselves. The entire supply of IOTA was up for grabs during the crowdsale.
The IOTA community then contributed 5% of their tokens to create IOTA Foundation which works on researching, developing and advancing the cryptocurrency. Entrepreneurs, economists, professors, thought leaders, and mathematicians are members of the IOTA Foundation. ,
Most Notable IOTA [MIOTA] Partnerships
The partnership a crypto project has also speaks volumes about its credibility. While a lot of great projects have teamed up with some of the biggest of corporations throughout the world, the partnerships of IOTA are most notable.
Volkswagen, Outlier Ventures, Innogy, Luxoft, Satoshi Pay, Government of Thailand, Alpha Venturi, Oslo Cancer Cluster, and Olso Medtech are some of the most prominent names that have been associated with teh crypto company. Moreover, IOTA is now also a member of the Trusted IoT Alliance, a group which focuses on helping companies through blockchain solutions.
Companies like Bosch, Cisco, U.S. Bank, Consensys, HCM International of Foxconn Group, Skuchain, Chronicled, and Gemalto are some of the members of this alliance group.
IOTA Attacked for Subpar Wallet Security Following $4m Hack
In January 2018, the IOTA project was under harsh criticism and anger as scammers stole around $4 million worth of IOTA from user wallets. Unlike wallets of other cryptocurrencies which can generate user keys themselves, IOTA wallets require users to generate the keys. Most of the people used online key generators, like Iotaseed.io.
The Iotaseed.io website was hacked and the hackers were able to access the IOTA user seeds which they apparently used for stealing MIOTA. The hackers also launched a DDoS attack on some of the largest IOTA nodes to make sure that people who have lost their tokens were not able to recover it.
Since the attack, the team was working on an improved wallet known as Trinity, whose beta version was recently released. The wallet is now available for desktop as well as Android and iOS mobile phones.
MIOTA Price Fluctuations
IOTA is currently the 9th largest cryptocurrency in the market according to market capitalization. The cryptocurrency is currently trading at $1.04, the price has dropped by 4.12% in the past 24 hours.
It was trading around $0.35 in November 2017 and had a market cap of around $1 billion. Within a month, it reached $4 with a market cap of $11.6 billion and became the 4th largest cryptocurrency.
While the price is consistently falling in the last few months, the new partnerships and launch of Trinity wallet are expected to positively impact the value of MIOTA as soon as the entire crypto space starts to recover.
Should You Invest in MIOTA?
If you are a smart investor and prefer looking behind the curtain before investing, you might already know by now that Bitcoin has a few major drawbacks. MIOTA has effectively eliminated all the major flaws of Bitcoin, making it a better cryptocurrency in terms of technology.
As the project is built around IoT and the connected device’s technology is expected to grow massively, IOTA would definitely be one of the biggest beneficiaries in the future. The project has some great minds working on it and the team has been able to consistently build new partnerships.
At its current price, MIOTA can be an excellent long-term investment. Do not expect to earn big bucks within a week or month after investing. IoT technology is somewhat at a nascent stage and for it to spread as per the expectations would definitely take some time.
Where Can You Buy MIOTA?
As IOTA is one of the top cryptocurrencies, it is easily available on many top exchanges like Bitfinex, Binance, OKEx, Coinone, Huobi, HitBTC, and Exrates. Many of these exchanges allow you to buy IOTA directly with USD or other cryptocurrencies like BTC and ETH.
Once you’ve purchased MIOTA, transfer them to your wallet for safety. You can use Trinity wallet which is the official wallet or use other top options like Nostalgia Light Wallet or GUI Light Wallet.
The Writing on the Wall
Technologies like IoT are expected to play an important role in human lives a few years from now. The easiest way to take advantage of this is to invest in a crypto project built around IoT, like the IOTA project. It is one of the top cryptocurrencies and significantly better than Bitcoin and hundreds of other currencies. If IoT technology does spread like it is expected to, MIOTA can help you rake in the moolah.
But just like any other investment, make sure that you only invest what you are prepared to lose. Start small and try to know as much about it as possible to invest confidently.
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