IOTA: What We Know And What’s New
IOTA is a rather new Cryptocurrency that was released in May 2018, and it showed tremendous effort in possibly replacing Bitcoin. It is very similar to Bitcoin, but instead using a blockchain technology, it uses something that is called “Tangle”. Tangle seems to be more efficient than any other blockchain technology and offered many solutions that Bitcoin doesn’t. IOTA at one time was one of the hottest coins in the world. IOTA is decentralized just like bitcoin. That is a good climate for a currency like IOTA because ethereum also has reached a very high price per coin so investors will most likely buy IOTA coin because of its cheaper price. All this said the prediction for IOTA in 2018 is pretty high and the future looks good for investors who are looking to make a profit. IOTA is better at some things compared to Litecoin and Bitcoin but most remarkable is that it is very easily integrated into all programming languages. IOTA is created so it can work with all of the programming languages. All the other companies such as Bitcoin or Litecoin need to remake their system so they can work with all the other programming languages. Also, IOTA transactions are differently verified. Iota is verified when you make transactions yourself and for each and every one transaction you make, two that are behind the first one are verified with your own electricity.
Tangle Technology Explained
The tangle and a blockchain are two different platforms based on the same principles. The tangle is built on a DAG or Directed Acyclic Graph which basically means that instead of building a chain where blocks are added in intervals, the tangle can achieve transactions with no transaction fees. As Tangle grows and more users make transactions, the entire system becomes faster and more secure.
Another thing to look at is the consensus. The Blockchain technology, a consensus is achieved through a very complex mechanism where parties are racing each other and the goal is to add the next block on the Blockchain and win the reward which in this case is transaction fees. This leads to a faster centralization of the Blockchain.
In the tangle, however, each and every participant can make a transaction and by that also participates in the consensus. By doing this, the network stays entirely decentralized and no need of paying a transaction fee
One interesting feature of the Tangle is that it is not deterministic like the Blockchain, on the contrary, is probabilistic. This means that the network chooses two random transactions to be verified so some transactions can be confirmed faster than others, unlike Bitcoin where a transaction can take up to 8-12 minutes.
But, of course, every cryptocurrency has some issues with certain aspects of their work and IOTA is no exception. IOTA has a lot of technical difficulties and challenges that are yet to be solved in order for IOTA to function perfectly as a decentralized digital currency.
The developer of the Ethereum cryptocurrency argued that Tangle sounds perfect in theory but in reality hits a lot of issues that don’t allow the technology to be efficient. He says that IOTA is built to function on an existing hardware which is binary and so is the communication network it uses. However, Tangle has some great features and a lot is expected of it.
Due to the implementation of the Tangle protocol, the scalability is near infinite so in contrast to other blockchain-based networks, the Tangle is actually much faster. This is because of the increasing number of users that validate the transactions faster. The lower hashing power that is required to transact over the Tangle is also adding incentive for new users to the platform.
Also, because of the fact that the users are transacting over the network and validate the previous transactions, this results in zero transaction fees. Therefore, the possibility of micro-transactions is now a reality. The Micro transactions were not possible previously because of the high transaction fees. However, with the Tangle, micro and nano transactions is possible. In contrast to other blockchain-based networks, the Tangle is quantum-resistant which makes one system protected from quantum computers. Thanks to the superior computing power offered by the quantum computers, some of the blockchain-based technologies can be susceptible to be attacked in the future.
Is The Tangle Better Than The Blockchain?
Everyone is asking this question, but the answer is not easy to find. The blockchain has become an integral part of the new financial and digital revolution and this something that is hard to overcome. There are billions of assets that are tied up in the blockchain and multiple multi-national companies made huge investments in the blockchain technology. To switch to another alternative will be very dangerous but Tangle could be the savior here. Many believe that the Tangle is the new and improved version of the blockhain but the argument is that Tangle has improved the mistakes and errors that the blockchain has. No one knows whether the Blockchain will be able to handle a huge increase in usage at the current rate and no one knows what will happen when it can take any more. This is not the case with Tangle however because of its potential for scalability and unique technology thanks to the decentralized ledger that is the key of longevity and success.
Key To Success
Another reason why IOTA could be among the top coins is the Internet Of Things. This was selected as one of the essential concepts of the recent years. The IOT is a network of devices that can connect to the internet and exchange information. This includes TVs, mobile phones, computers and much more. The concept is that the Internet of things creates a web connectivity which allows the devices to communicate with each other. IOTA and the Tangle are built ont his concept and therefore allow for the devices to communicate and exchange data as well as facilitate payments and transactions safely.