Why IOTA, and why it`s probably the most undervalued technological advancement in crypto right now.
First, what is IOTA?
IOTA’s Tangle is an open, feeless and scalable distributed ledger, designed to support frictionless data and value transfer. IOTA is the first distributed ledger built for the “Internet of Everything” – a network for exchanging value and data between humans and machines. No blocks. No Miners. When you send an IOTA transaction you validate two other transactions. This allows IOTA to overcome the cost and scalability limitations of blockchain. The IOTA network is built to for the Internet of Things, with tamper-proof data, feeless micro transactions and low resource requirements. IOTA is posed to play a central role in the next industrial revolution, enabling economic relationships between machines and bridging the human and machine economies. The Tangle is IOTA’s network. It immutably records the exchange of data and value. It ensures that the information is trustworthy and cannot be tampered with nor destroyed.
Now to the point, there are multiple reasons why IOTA might be considered the most undervalued cryptocurreny right now. We urge all readers to do their own research and investing, not based on rumours or FUD.
Below is a list of subjects in favor of IOTA that can be easily compared to other crypto currencies:
Zero Fees (No transactional costs)
Because the Tangle eliminates the requirement of miners/stakers/etc., newly minted units of currency and transaction fees do not need to be extracted from the system to pay validation fees. The result is that IOTA has zero fees.
Quantum Secure (Future secure when introduction to quantum computers)
IOTA is resistant against quantum computer attacks, due to its use of the Winternitz One Time Signature (WOTS) scheme, which is quantum resistant.
Decentralized (Will be decentralized when coordinator is turned off, est. Q1 2021)
The first phase in Iota’s IOTA 2.0 transition roadmap is implemented. The Iota Foundation laid out three phases to reach Coordicide, an event that will envision the permanent removal of Iota’s Coordinator. The Coordinator has been a basic part of IOTA’s network, representing an application run by the IOTA Foundation to digitally confirm valid transactions. Iota Foundation expects to remove the network Coordinator and become a fully decentralized network by Q1 2021. They have had several audits to prove that their solution will work.
Scalability (Infinite scalability)
Since each transaction requires the sender to verify two other transactions on the Tangle, more transactions can be confirmed as the number of users sending them increases. This means that IOTA scales proportionally to the number of transactions ad infinitum.
Fast TPS (Transactions per second, and becoming faster)
Network capacity improved to over 1000 TPS already on main-net. With new updates coming, iota is starting to get faster and faster. Next fase est. oct.
Trilemma (Solving now, Decentralized, Scalable, Secure)
Typically Blockchains are often forced to make trade-offs that prevent them from achieving all 3 aspects:
– Decentralized: creating a blockchain system that does not rely on a central point of control.
– Scalable: the ability for a blockchain system to handle an increasingly growing amount of transactions.
– Secure: the ability of the blockchain system to operate as expected, defend itself from attacks, bugs, and other unforeseen issues. IOTA is currently on the road to solve all of the above when coordicide is achieved.
Low resource (Now heavy hardware, software or power dependencies)
IOTA is designed for tiny devices with low resource requirements to participate.
Partners and Collaborators (Big International partners and collaborators all over the world)
IOTA collaborates with organizations across business, government and academia to develop open-source solutions and provide thought-leadership in key IOTA use case areas. Right now IOTA has 100+ Collaborations and partnerships. See some of them in the picture below.
Registered patents (Many patents filed by Big Companies)
The number of companies referencing IOTA in patents is growing rapidly. Some well-known personalities of the crypto scene see IOTA as the new industry standard for machines as soon as IOTA 2.0 is fully rolled out.
The list as of today contains 253 patents from 109 unique entities, referencing the IOTA protocol, IOTA Tangle or the IOTA Foundation.
Blockchain vs. DAG (Research the difference)
On a blockchain, blocks A, B and C are different blocks and for block C to receive a message from block A, block B must verify it first. On a DAG, there are no blocks. All network participants are directly connected with each other. Thus, A can send a message directly to C, and (nearly) simultaneously update B. The data moves directly, the network is faster, cheaper, more energy efficient and more scalable.
The Foundation (The brightest minds in crypto, math, statistics, programming, business and more..)
The IOTA foundation is a board member of International Association for Trusted Blockchain Applications (INATBA), and founding member of the trusted-IoT alliance and mobility open blockchain initiative (MOBI), to promote blockchain and distributed ledgers in regulatory approaches, the IoT ecosystem and mobility. The foundation has a team consisting of engineers, analysts, managers, designers, scientists, security and more..
Registered non-profit Organization (Not here for the profit, but to build the technology, environment and future)
I 2017 IOTA becomes the first fully regulated not-for–profit foundation in Germany to be capitalized with a crypto-currency.
Use cases (Hundreds of real world use cases established)
IOTA is the next generation of blockchain technology and continues to push the boundaries in real word application and use cases.
Her is a list of some of the categories:
– Smart city Taipei
– Smart Energy
– Manufacturing and supplychain
Can be built on existing tech (Network is operational on small hardware and software)
IOTA is a flexible protocol that can be utilized in various ways. The most common is value transfer via the native token. However, IOTA can be easily extended by building standards on top of the base protocol.
These are just some of our findings if you do a deepdive into alle the information available online and from top industry leaders. It is our assessment that IOTA in total is far more superior compared to other crypto currencies at the moment.
Disclaimer: This is a personal article and opinion of the author. We do not offer advice on crypto and all investments should be done solely of own choice and risk.
This article was not sponsored by IOTA.
For more information visit: https://www.iota.org/