IOTA BLOCKCHAIN

in #busy5 years ago

iota.jpg
source

IOTA is a distributed ledger designed to keep records and execute transactions between machines in the Internet of Things (IoT) ecosystem. The IOTA’s platform uses a Decentralized Acyclic Graph (DAG) instead of a blockchain used by other similar systems. The non profit foundation behind the platform/system has inked agreements with prominent German companies, such as Volkswagen and Bosch, to extend its platform’s utility among connected devices.

THE IOTA’S CRYPTOCURRENCY-mIOTA

This will enable micropayment transactions between connected devices. For example, it will enable you to purchase individual grocery items from an e-commerce site using your Internet-connected device. According to Gartner, the number of IoT-enabled devices is expected to multiply to 20.4 billion by 2020. Each of these devices will permit multiple transactions with other connected devices on the Internet during the course of a day.

Through this platform and cryptocurrency, IOTA has goals to become a carrier for these transactions. The amount of transactions on IOTA’s network is restricted to micropayments between these devices.
IOTA also aims to solve these three problems encountered by bitcoin, the original cryptocurrency, on its network. They include; transaction fee, scalability and very high network speed. According to the development team at IOTA, their network is lighter and faster than bitcoin’s blockchain network.

WHAT IS IOTA'S DAG
IOTA’s DAG is a one step departure from blockchain-based systems. Now such systems rely on a configuration of nodes that generate blocks connected on a chain to mine coins. Technically, nodes in a cryptocurrency’s blockchain uses Proof of Work/Proof of Stake algorithms to approve transactions. These algorithms requires nodes to reach consensus to validate all transactions in their network. DAG eradicates the dependency on miners by not using a blockchain.

It grows through connections between nodes and approval of transactions.

Consensus is not required in IOTA’s network to approve a transaction. Rather, each incoming transaction must approve two previous transactions in order to be considered valid. In this manner, the network is very well self-propagating. The IOTA implementation of DAG is called TANGLE.

WHAT IS TANGLE
Tangle and Blockchain are two different platforms on their own. Tangle has the to process transactions without paying for monetary fees. But also it is important to mention that the ‘fee’ is paid when a minute amount of computation is used for processing other transactions.

It has also a very important feature. In the Bitcoin network, a group of miners is trying to process the transactions and participate from mining activities. The network is decentralized. But Tangle provides for greater and better decentralization. Each individual processing a transaction is able to take part of the consensus. With this technology, IOTA is able to process micro transactions that will enable it to be integrated with its primary purpose; The IoT.

As the number of devices connected starts to grow, an increased amount of transactions will take place in the network.

CONCLUSION
IOTA is one of the most important technology project available in the crypto market right now. They envision to become the main standard mode of transaction between Internet-connected devices in the nearest future. "We envision IOTA to be a permissionless, public and strong backbone for the Internet of Things that enables for a true interoperability between all devices.

Sort:  

Hi @samstickkz
I see you trade cryptocurrencies. Have you heard of Digitex Futures Exchange? They don't charge transaction fees, neither do they charge commission on trades

i need to read about them

Coin Marketplace

STEEM 0.35
TRX 0.12
JST 0.040
BTC 70734.57
ETH 3561.52
USDT 1.00
SBD 4.75