IOTA is one of the emerging cryptocurrencies that are also known to be open source. It is designed for making payments machines and providing users with secure communications on the Internet of Things.
Unlike most digital currencies that are blockchain-based, IOTA is driven by the directed acyclic graph technology. Transactions conducted with IOTA are usually free and boast of fast confirmation. These attributes set IOTA apart from other cryptocurrencies.
A group of like-minded people, Sergey Ivancheglo, David Sonstebo, Dr. Serguei Popv, and Dominik Schiener founded IOTA in 2015. The open source distributed ledger is under the oversight of the IOTA foundation. This non-profit foundation is dedicated to maintaining the digital currency to be license-free so that developers from all walks of life can work with it.
The foundation has formed an alliance with some companies such as Innogy and Volkswagen for the development of CarPass, a technology based on IOTA that makes securing digital identities, audit trails, and charging networks specifically for cars.
The foundation has opened a data marketplace with the assistance of Fujitsu and Deutsche Telekom via the IOTA technology. The IOTA foundation is one of the founding members of the Trusted IOT Alliance, an alliance including Consensys, Bosch, and USbank.
Recently, IOTA is estimated to have a market capitalization of $10 billion. This makes it be rated as the 7th largest cryptocurrency in the world.
IOTA is a digital currency designed for managing smart devices. The expansion of the Internet of Things has gradually made it a necessity to have a system that can easily handle the sharing of resources and interoperability. With IOTA, companies have the freedom and platform for exploring new business-to-business ideas. IOTA proposes to make this a reality by ensuring that technological resources have the potential to become items in the open market. This is usually without a fee and in real time.
IOTA is driven by the Tangle ledger. This is the driving force behind its decentralization, scalability, and as a modular ledger that is so much adaptable that it can be used for device management for Wi-Fi bandwidth, smart cars, and what have you.
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Any device that comes with a chip can easily be leased by using IOTA. This simply means that it can be used for leasing some features of your smart devices, such as its computing power, to people across the globe. This will be in real-time.
How Does IOTA Work?
The Tangle ledger, as I have previously mentioned, is behind the IOTA digital currency and is solidly behind its potentials to rule the world. The ledger makes it possible for devices to get some amount of on-demand resources while it simultaneously stores data from dataloggers and sensors that are securely kept. Such data have also been verified via the ledger too.
There is a clear distinction between the ledger and other ledgers and blockchains. It has its unique features which include operating as a blockless ledger. The ledger is also distributed, lightweight, and scalable.
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There is an advantage for operating without a ledger. That makes it easy and convenient for the transfer of value without charging any fees. It also uses the consensus system, an integral part of the IOTA system. As a result, we have a self-regulated and decentralized peer-to-peer network.
Benefits of IOTA:
The main benefits of IOTA are with respect to scalability & zero fees. IOTA has unlimited scalability via its web and has zero transaction fees.
The IOTA currency’s primary use is for the management of smart devices through an “economy of things” that makes real-time sharing of computing power, especially among smart devices. Your geographical location in the world is immaterial as your smart devices can be tracked by the technology.
In addition to the primary role of IOTA, it is also expected to extend its areas of applications to include:
- Data transfer: The ability to use the Tangle ledger for transferring data is one of the core features of the IOTA network. You can establish authenticated and secure channels that devices can use for communication with the IOTA technology. The data that is transferred would have been tamper-proof and authenticated to eliminate the chances of being attacked.
- Voting: Although IOTA is created for managing smart devices, it has some awesome features that make it useful for e-voting.
As the IOTA network grows, its full potentials will become manifest. We’ll then see what other areas of life where it can be used.
IOTA Partnership with Microsoft?
The cryptocurrency world woke up to the news recently that Microsoft has formed a partnership with IOTA. The news was received with exultation. Many people were encouraged by the partnership news to invest heavily in the currency, driving the value of the coin. IOTA’s market share rose from $2.95 billion to more than $13 billion after the announcement.
However, in a swift change of fate, IOTA has come out to denounce the news as nothing but falsehood. When addressing this issue, the co-founder of IOTA, Dominik Scheiner said this during an interview with TNW: “We have never mentioned that any of the companies which are participating in the marketplace are out ‘partners, we call them participants.’”
His open denial of the partnership is an eye-opener and has cleared the air over the partnership. It is now clear that Microsoft was never an IOTA’s partner but a participant.
How to Buy IOTA on Binance?
IOTA is a digital currency that can’t be purchased with the conventional currency. You need another cryptocurrency to purchase IOTA. The implication is that if you don’t have a cryptocurrency such as Ethereum or Bitcoin, you can’t buy IOTA.
Some of the exchanges where you can buy IOTA include Bittrex, Binance etc…. Let me demonstrate how to make a purchase on the Binance platform.
Step 1: Sign up to Binance.
Step 2: Open an account.
Step 3: Fund your account with BTC. You can do this if you already have Bitcoin on other exchanges such as Coinbase, Unocoin etc.
Step 4: Since you have successfully funded your account, you can now buy IOTA. You can use either the Advanced or Basic option from the Exchange menu.
Then, select IOTA/BTC from the options.
Place your order.
With this step-by-step guide, you won’t find it challenging to become an IOTA investor.
We hope you enjoyed reading this article. If you have any questions/suggestions, then please do mention them in the comments below.
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true, iota boasts of a very fast transaction. I buy iota from bittrex and their transaction is fast and their currencies sell cheap. Plus they have a good customer support that is there to attend to you if you come across any difficulty. Binance is also a good option too. I’ve heard about it but haven’t used it though.