Introduction to IOTA
IOTA (MIOTA) is a distributed ledger created to record and execute transactions between any machine or device in the Internet of Things (IoT) ecosystem. The ledger utilises a cryptocurrency called mIOTA to account for transactions in its network. IOTA's chief innovation is Tangle, a system of nodes used for verifying transactions. IOTA alleges that Tangle is faster and more effective than typical blockchains used in cryptocurrencies.
The IOTA Foundation, the non profit foundation accountable for the ledger, has inked agreements with top companies, like Bosch and Volkswagen, to enlarge the platform's utility among connected devices.
Understanding IOTA
Several devices were connected to the Internet by the year 2020. Within this Internet of Things ecosystem, devices are able to exchange data and payment information with many other devices in transactions conducted throughout the day.
IOTA aims to become the official mode of administering transactions on devices. Its founders have expressed the ledger as a "public permission-less backbone for the Internet of Things that allows interoperability between multiple devices." In simpler terms, this means that it will facilitate transactions between connected devices, and anyone will be able to access it.
History Of IOTA
- Sergey Ivancheglo, David Sønstebø, Serguei Popov and Dominik Schiener joined later and co-founded IOTA.
- The project was declared in October 2015 through a post advertising a token sale in an online bitcoin forum. The roots of IOTA go way back to the Jinn project. That project intended to develop ternary hardware or low-cost and energy-efficient hardware, essentially general-purpose processors, for use in the IoT ecosystem. Jinn operated a crowd sale for its tokens in September 2014. Roughly 100,000 tokens were sold during the crowd sale, amounting to collections of $250,000.
- The Jinn tokens were in hot water because they were marketed as profit sharing tokens, which might be seen as security tokens. Initial coin offerings (ICOs) were still obtaining traction at that time, and there was no clarity about their regulatory status.
Future Of IOTA
Although IOTA's market capitalisation was still down considerably from its 2017 highs, this cryptocurrency's fortunes displayed signs of improving by late 2020. It began 2020 with a market capitalisation of $446 million and was above $900 million as of Dec. 19, 2020. That's a gain of over 100%, but it was not easy. IOTA's continued partnership with huge corporations and its focus on the growing Internet of Things (IoT) also helped set it apart from other cryptocurrencies.
