Everything you need to know about IOTA
IOTA is among the most popular cryptocurrencies in the world
But what is the reason for that?
Well, let’s figure it out!
What is IOTA?
IOTA is a distributed ledger named Tangle. Tangle is different from Blockchain in that it utilizes an acrylic graph instead of blocks. Any user in the IOTA network can mine coins. Because of this, transactions on the network are free.
The native currency of the network is MIOTA with a supply of almost 3 billion. IOTA runs on a proof of work algorithm. IOTA was aimed to solve the three most important issues of Bitcoin: third party miners, transaction fees and scalability.
History of IOTA?
The IOTA network was established in 2016 by the IOTA Foundation. In June 2017, the MIOTA price was $0.638 but fell to $0.17 in only a month. However, with the Bitcoin price increase, MIOTA gained momentum and reached $1.00 on August 21.
On December 19 of the same year, after a short drawback, MIOTA jumped to its all-time high hitting $5.69. After that, the price continued to fluctuate heavily falling down to $0.934 in April, before jumping to $2.46 in a month.
After May 2018, the MIOTA price slowly fell and experienced only short rises, it is currently sitting $0.4.
Advantages of IOTA
As mentioned earlier, every user of the IOTA network or owner of MIOTA can mine coins unlike coins like Bytom or Qtum. The issue with Bitcoin miners is that 70 percent of mining takes place in China. This, in turn, creates a unique type of centralization, since Chinese mining farms become the middleman for crypto transactions. If the Chinese government banned crypto mining, the Bitcoin network would become chaotic.
- No Transaction Fees
One of the most famous features of the IOTA protocol is that transactions on the network are free. When it comes to Bitcoin, fees are placed on both large and small transactions and they rise over time.
The IOTA foundation earns money from contributions and the value of the IOTA token, MIOTA. There are no mining prices in the system.
Scalability is the capacity of a network to manage an increasing amount of work. Cryptocurrencies such as Bitcoin have an issue with scalability since there is a limit to the size and frequency of the blockchain. The average block creation time is ten minutes and the size of the block is limited to 1 Megabyte. Scalability isn’t a part of Bitcoin’s infrastructure.
In IOTA, on the other hand, every transaction is approved by two others that have some type of connection to them. IOTA uses the tangle technology in a way to efficiently operate with large amounts of information.
If you’d like to invest in MIOTA, you should also monitor you coins with a crypto tracker. using a tool like this might seem complex, but here’s a very informative crypto portfolio tracker guide to help you!