IOTA cryptocurrency review: mining, technology, opinion

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IOTA cryptocurrency review

The concept of Internet of Things involves the union of objects around us in a global network that works on technology M2M (machine to machine). It was first formed at the end of the last millennium, its author is the head of the Auto-ID Research Center, Massachusetts Institute of Technology Kevin Ashton. According to the scientists, all household appliances, life support systems, products equipped with radio frequency labels should be combined into a single computer system. For settlements in the global network of Internet of Things, an internal financial instrument is needed. And he already created this cryptocurrency IOTA (Miota).

New generation IOTA cryptocurrency using Tangle technology. The IOTA coin project team, together with technology giants such as Google, IBM, Microsoft, Samsung, are working together to implement the idea of ​​the global M2M computing network.

The IOTA Digital Token is designed to serve the Internet of Things (IoT). The IOT system is billions of small computing devices with RF modules that are increasingly embedded in various household appliances and other objects around us, allowing them to send and receive data. IOTA turns these connected machines into autonomous economic agents, creating a completely new “economy of things”.

In the distributed IOTA ledger, each connected machine can support its own virtual wallet and carry out transactions with other connected machines, even if the cost is a fraction of a cent, with zero commission.
By 2025, it is predicted that more than 75 billion devices will be connected to the Internet of things. Until the IOTA cryptocurrency becomes more common, the network adopted the basic unit 1 MegaIOTA (MIOTA). At the time of writing, 1 miota \u003d $ 0.260847.

Cryptocurrency Characteristics

Let’s conduct a comparative analysis of Tangle with Blockchain.

Data structure

A blockchain is a sequential chain of blocks, similar to a linked list. Blocks contain data on completed transactions and are created within a certain time interval. In “Confusion,” as the word Tangle is translated from English, each transaction (and not a block of transactions) refers to the two previous ones, forming a complex web structure, known in mathematics as a “Directional Acyclic Graph”, or DAG for short. The DAG structure allows transactions to be performed simultaneously, asynchronously and continuously, in contrast to the linear expansion of the blockchain.

Scalability

By parallelizing transaction processing, IOTA improves network bandwidth. In the blockchain, in order to confirm each block, it is necessary to create several subsequent ones to insure against the problem of double spending. IOTA validates transactions using the “heaviest Tangle” rule. What it consists of we will now tell.

Consensus

Unlike other ecosystems that have the “longest chain” rule in the Iota blockchain, consensus follows the “heaviest tangle”. To send funds, the user must check 2 transactions on the network. The higher the activity of Miota holders, the more checks, and the faster the transaction is confirmed. When double spending or other types of fraud occur, the “invalid” branch of the Iota Tangle cryptocurrency becomes an orphan and is forgotten.

Security

In the IOTA system, verification of transfers does not require large computing power, therefore, a commission fee is not charged. Unlike other blockchain networks where Proof-of-Work resembles a decentralized lottery, in Tangle, transaction verification is a measure of preventing spam and sibilles.

IOTA Foundation

The IOTA Foundation, was officially registered in the fall of 2017 in Berlin.

Basic goals:

  • Research and modification of the basic level of the protocol;
  • Development of off-the-shelf software for the community, partners and ecosystem;
  • Advancing Internet of Things.

The IOTA Foundation is funded from three sources:

  • Iota cryptocurrency holdings, consisting of community donations and unclaimed tokens of the original crowdsale;
  • Grants from governments for research and development;
  • Donations from individuals or businesses.

The IOTA Foundation is governed by an official charter and includes:

  • Board of Governors to determine and implement the concept of the Fund and manage its activities;
  • Supervisory Board to guide and oversee the work of the Board of Governors;
  • Advisory board to provide independent advice, perspectives and directions.

In February 2019, the IOTA Foundation entered into a cooperation agreement with Nova. The teams work together to promote successful startups using next-generation technologies.

How to install IOTA wallet

In 2018, the project team released an IOTA wallet called Trinity for Windows, MAC, Linux, iOS and Android. To download the program you need, go to the IOTA official website in the wallet section.

  1. Download and run the Trinity installation.
  2. Accept the terms of use.
  3. Create a mnemonic phrase by selecting 10 letters, the program will generate 27 random combinations of 3 characters each, this is the seed wallet. Write it down or print it with a QR code and save it in a safe place.
  4. Enter seed in the wallet field and the program will start. Now you have an address for receiving cryptocurrency.

On a personal computer, by default, a full node is launched, which requires downloading the Tangle to the hard disk. You can deactivate Full Node and connect to the remote server by going to the wallet settings in the upper left corner.
Using the thin client for a coin, you risk nothing. Mnemonics never leaves your wallet, you are still required to perform a transaction check, and you will personally sign your transfer of funds. But it should be noted that the public providers of the full node are often overloaded with Light Node requests, so in order to take full advantage of the technology of free and fast transaction calculation and IOTA data integrity, it is recommended to launch the full node.

The IOTA Trinity wallet has additional security options, including two-factor authentication (2FA). The application interface is convenient and intuitive. In the lower right corner there is a price ticker showing the current IOTA price. There is a tab, generating addresses for receiving tokens, and a tab for sending.

IOTA cryptocurrency is included in the list of coins supported by the Ledger Live application. You can synchronize Trinity with the Ledger hardware safe and feel completely safe.

IOTA uses one-time signatures to verify transactions, which reduces security. It is recommended that after sending IOTA coin from your address, create a new one and move the funds left in your wallet there. Typically, a program performs this task automatically. You can track transactions on the services https://thetangle.org/ and https://iotasear.ch/.

Buying and selling coins

Exchange of IOTA to other cryptocurrencies or fiat is supported by 22 trading platforms. Most of the deals fall on Binance and Bitfinex. Major trading pairs: IOTA / BTC, OTA / ETH, IOTA / USD, IOTA / EUR. In addition, IOTA can be bought at Bitfinex for Japanese yens, and at Coinone for South Korean won. To trade on the exchange, registration is required, and if you plan to use traditional money, then complete verification of your identity. You will need to send scanned copies of your personal documents and bank account.

 IOTA Cryptocurrency Outlook and Forecast

In 2018, the European Commission officially approved the development of “+ CityxChange”, which became the new project “Smart City”, under the theme “Smart Cities and Communities”.

The + CityxChange project is divided into several work packages, each of which is dedicated to a specific area of ​​the future energy-efficient “smart city”. Each work package consists of several sections. IOTA is working on 12 tasks ranging from standard activities for project management, development and planning of commercialization and operation of new technologies.

Two main industries where Tangle is used to develop innovative solutions:

  • Development of public networks and platforms for local energy trade;
  • Wireless networks for environmental management and environmental auditing (emaas)

The IOTA Foundation collaborates with the Linux Foundation as part of the LF Edge project, Zühlke, a service provider for innovative projects throughout Europe.

The main advantages of the coin

  • High scalability.
  • Availability of nano and microtransactions.
  • No commissions.

 Disadvantages

It should be noted that IOTA and Tangle technology have not yet worked at full load, which means you cannot be 100% sure of the reliability of the project. The speculative nature of the cryptocurrency market negatively affects the development of technology. It is very difficult to give any predictions of the cost of IOTA. The potential of the Tangle system will be revealed only after the implementation of the concept of the Internet of things.

Development prospects

The system can be used in electronic voting to create secure communication channels and transmit encrypted messages. The widespread introduction of Tangle will make it possible to rent everything that has a chip. For example, household appliances, transport, computing resources, Wi-Fi channels.

Conclusion

It is unlikely that anyone doubts that the Internet of Things project will be successfully implemented and then the iota cryptocurrency will become in demand. So far, the IW technology does not have a debugged infrastructure for normal functioning. Yes, and society is not yet ready for the widespread use of the Internet of things, but this is a very promising area of ​​activity.

Full integration of blockchain technologies into the economy will take at least 5 years, so investing in IOTA, you should not wait for an instant profit. Buying any cryptocurrency is a long-term investment.

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