Not until recently, people were suspicious about the rise of particular cryptocurrencies and the amazing value they have gained. The actual ongoings on the cryptocurrency market seem to be more than a simple trend that is on a constant rise, moreover, the crypto coins are considered to be the future of both financial transactions and other types of data exchange.
Since this type of monetary and data exchange is relatively new to a vast majority of the world population, although certain cryptos such as Bitcoin are being promoted by the media daily, we will try to bring you closer to the IOTA cryptocurrency and explain how it works. Thus, read the following lines and see how you can become a part of a rapidly growing community and realize if it does work for you better sooner than later.
IOTA and MIOTA
First of all, we should determine the basics. Namely, IOTA is an abbreviation of the ‘Internet of Things Application’, and, in a nutshell, it greases the wheels for the exchanges of data between devices on IoT (Internet of Things). While IOTA represents a crypto technology, but not like the ones that we are used to, moreover, although it addresses the transaction fees and scalability of blockchain, it uses neither block nor chain. It works in a way that if you want to make a transaction of any kind or volume, what you need to do first is verifying the 2 former transactions.
This particular approach excludes the necessity of miners and mining while there is no central ledger. There is no scheduled way that the transactions are verified, moreover, the devices are assigned a task in a random fashion and check each other, while they structure a consensus via the transactions that are interconnected. The guys who made IOTA possible call this the Tangle, while this type of authentication is known as DAG (Digital Acyclic Graph) among cryptographers.
The velocity of transactions happening in the IOTA platform is strictly connected and dependent on the number of interconnected devices, therefore, the more devices use the Tangle, the Tangle has more computing power. Another important feature of IOTA is that it enables any type of payment to be realized regardless of the size of the transaction, thus, even minimal payments are possible, and not only that, but the transactions can be utilized between machines, in that way making machine to machine micro-economy easy.
To realize the pace at which the IoT is growing you simply need to take a look at the numbers. Namely, when the platform was launched there were somewhat less than 9 billion interconnected devices, while now that number surpasses 26 billion. The advantage of IOTA is that it is free and costs only the cost of electricity required to make and verify the transactions.
Simply, IOTA currency is also called MIOTA (Mega IOTA) and it is used to make transactions using the IOTA platform. MIOTA cannot be mined and it is not based on typical blockchain technology. Take Bitcoin miners, for example, they are being rewarded a certain fee for the computing power they provide and the electricity their machines spend. In short words, that computing and electric power is being used to verify other people’s transactions while a miner does not participate in a transaction itself, but participates as a mediator. When you use IOTA coins, you only participate when you want to make a transaction for yourself, and your technology is utilized when you decide to do so. Since the market and the opportunities are constantly evolving and provide more possibilities for crypto users feel free to visit iota-news.com and expand your knowledge on IOTA cryptocurrency and learn how to acquire it.
No Fee Transactions
Whether you are aware of it or not, it is truly possible to trade with cryptocurrencies with no fees included. Actually, the whole idea of IOTA would not be applicable if there were fees for every transaction made. Thus, no matter how small or the high amount you are willing to transfer you will be charged only via the electricity bill you receive at the end of the month.
The omission of charge for the service is essential for IOTA’s mission of servicing IoT devices since they will frequently exchange small portions of a penny at a high-frequency rate. If those small transactions were commissioned there would be no reason to promote micropayments at all and the whole process would be impractical. For the sake of being a foundation of the machine-to-machine economy, the IOTA must be free of charge.
Highly Scalable and Low Requirements
Almost any device that can be connected to the internet can be a part of the network since it has been designed to connect even the smallest sensor-based gadgets. The best of all is that the computing power solely grows with more devices connected to the web. With more members of this device-based community, transactions are easily realized within minutes no matter where you could be located, and the most important thing is that there are no mediators and scavengers that will feast upon numerous fees imposed on the users as other platforms do. The network is global and secure, protected from potential attacks because of the interconnectedness, where every transaction is verified by a random device that keeps the protocol functioning flawlessly.
So, what do you think about IOTA and MIOTA? Although it has been present on the market for more than five years, this cryptocurrency is yet to be recognized as one of the most optimal solutions for the machine-to-machine economy. Since it is not only financial transactions that can be realized thanks to the Tangle, numerous data transactions are made possible and easier within the same platform. Hopefully, the aforementioned pieces of information will prove their usefulness and appoint you in the right direction, since the world is changing fast and you need to be updated if you mean any business at all. Money as we know it will most likely cease to exist and the adequate alternative might be right in front of you. What you should do is make an effort and recognize it at the right moment.