The IOTA network and cryptocurrency is based on an open source code. As opposed to other digital currencies, it doesn’t use blockchain technology. The basis of the system is a directed acyclic graph (DAG), which is a kind of one-way data structure that does not allow repeating the same operation. This technology makes performing transactions free, fast and possible in an unlimited amount. Such solutions make the IOTA a very attractive coin. The IOTA cryptocurrency price perhaps isn’t one of the highest rates in history, but it has very good predictions for the future. Find out what else sets IOTA apart from other cryptocurrencies.
What is IOTA? The coin’s history, rate, technology and other properties
In 2015, this group of specialists got together:
- David Sonstebo – a Norwegian entrepreneur and manager;
- Sergey Ivancheglo – programming engineer;
- Dominik Schiener – a German entrepreneur;
- Serguei Popov – a doctor of mathematics, employee of the University of Porto.
This team created IOTA – a cryptocurrency and network which was supposed to allow efficient data communication in the Internet of Things.
The IOTA Foundation
The system is controlled by the IOTA Foundation. It’s a non-profit organization which is developing its own technology, allowing access to it to any programmer, without any licence requirements. The Foundation cooperates with many large subjects, sharing their technology with them. Some examples of their associates are:
- Volkswagen – the IOTA Foundation is co-creating the CarPass technology meant for secure audits, as well as creating digital identities and charging systems for electric cars;
- Deutsche Telekom, Microsoft, Fujitsu and Samsung – the Foundation helps these corporations to create a modern data market.
The fundraiser for IOTA’s growth
On the 25th of November 2015, the group of creators started a fundraiser for the platform’s development. When ICO was launched, exactly 2,779,530,283,277,761 IOTA crypto units were distributed. That is the final, finite number of coins, making the cryptocurrency a deflationary one. During the fundraiser, 999,999,999 coins were sold. You could buy them with bitcoins and tokens of a now non-existent platform called JINN (an earlier project of the IOTA team). The cryptocurrency sold during ICO earned them a profit of about 525,000 USD. This whole sum was used for developing the platform.
IOTA’s dynamic growth
ICO ended in January 2016. Just a few months later, open beta-testing began. In May 2017, the organization established a 10 million dollar fund, with the goal of developing more corporate collaboration, community projects and developer engagement initiatives.
This was also the time when a patron in the form of the venture capital company Outlier Ventures was obtained. SatoshiPay declared that they are quitting bitcoin payments and started to use the IOTA cryptocurrency in their systems. In July 2017, a public system network was launched. People started trading IOTA crypto on the Bitfinex exchange.
IOTA Foundation’s purpose
In November 2017, the IOTA Foundation was officially registered. What did this mean for the future of IOTA cryptocurrency? As we have already mentioned, the Foundation’s purpose was to find new business partners in the form of huge technological corporations, and to get funds for future projects. It’s also the operator of the Coordinator, i.e. the node which controls the transaction consensus.
IOTA crypto – no blockchain connection
The data structure based on the directed acyclic graph (the foundation of the IOTA cryptocurrency) is called Tangle. It’s not made of consecutive blocks of data connected into a chain. Instead, it’s more of a distributed network of points connected by straight lines.
How does Tangle work?
In IOTA, each node that wishes to complete a transaction must validate two randomly chosen transactions made by other nodes. This means that the more transactions, the bigger the network’s throughput – which is the exact opposite of blockchain-based systems. Each transaction made by a node must be verified a certain number of times by other nodes. Only then is it deemed valid by the recipient.
IOTA cryptocurrency and the Coordinator’s role
As you already know, IOTA crypto functions under a special node in the system. This node is called the Coordinator. This node validates all the network’s transactions. At this development stage, the DAG network on which the coin is based is not secure enough to function without a central coordinator. According to the developer team, the Coordinator will be eliminated when the network achieves a large enough size.
Where to buy IOTA?
It’s best to buy IOTA cryptocurrency on online exchanges. Do those include IOTA? This cryptocurrency exists in many different units and is available on dozens of exchanges. One such example is called a megaIOTA – 1 million basic units called IOTA.
Some cryptocurrency exchanges where you can buy IOTA:
- Bitfinex – the first exchange which allowed MIOTA trading;
- Binance – the exchange with currently the most IOTA crypto coins.
How to buy IOTA?
If you want to buy IOTA, you definitely need to register on a trading platform. In most cases, it’s free and very simple. How do you create an account? Fill in your email address on the exchange website and click on the activation link to confirm your account creation. Next, choose a safe password – and your exchange account is ready!
After you validate your personal information (according to the KYC/AML regulations), you will need to transfer traditional currency to your exchange account. This money is necessary to buy MIOTA. Each exchange is slightly different – you will find more detailed instructions about the trading process on the exchange’s website.
Firefly – the official IOTA wallet
If you want to manage your cryptocurrency efficiently and securely, you need a special IOTA wallet. The Firefly Wallet is best suited for this currency. You can install it on any computer. It works with most operating systems – Windows, macOS and Linux.Why is IOTA so popular? It’s all thanks to free and fast transfers, unlimited bandwidth and scalability. All of these aspects mean that the future of IOTA crypto is looking very bright. The organization has many more plans, such as providing B2B services for companies, creating electronic voting systems or modern data storage mediation. These are all reasons why you should definitely add IOTA to your cryptocurrency wallet.