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What is IOTA? The IoT transaction crypto

What is IOTA? The IoT transaction crypto

  • 19 October 2020
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What is IOTA? The IoT transaction crypto

What is IOTA is a popular question after releasing this coin. IOTA is a distributed network and third-generation digital currency and has new features that allow its users to make super-fast, fee-free transactions. The word no commission does exist in this platform. It means the transaction fee is zero. IOTA is very different from previous generations. It has entered the market with aspects such as DAG and the use of the Internet of Things.

The cryptocurrency of the network is IOTA. The IOTA Foundation created this currency in June 2014. The symbol (i) is the representation of the IOTA, and MIOTA is 1 million IOTAs. The number of these currency units is 2,779,530,283,277,761. All units in the first block are pre-produced and will not be added. IOTA is a completely decentralized network, but unlike most cryptocurrencies, it does not use a blockchain.

The platform that this crypto uses is the Tangle system. IOTA intends to change the microtransaction fundamentally, especially in the IoT or the Internet of Things industry.

By eliminating the use of traditional blockchain and no-commission systems, it allows many transactions to be made.

what is iota

What is IOTA

What is IOTA? The platform functionality

As mentioned in “What is IOTA” it is a universal payment tool based on distributed ledger technology named Tangle. It is almost like a blockchain for other digital currencies. But the way Tangle works with blockchain is different. To understand this, let’s take a brief look at how the blockchain works.

There are two general categories of users in this network:

  • Ordinary users or those who send transactions.
  • Miners who approve transactions.

There are two main problems here, one is paying a fee for transactions, and the other synchronizes transactions and restricts the entry of transactions into the network. The purpose of IOTA is to eliminate those problems. Tangle is the data structure behind the transaction in the platform. Tangle is like a special kind of Directed Acyclic Graph (DAG) that holds transactions. Each trade of any user represents a vertex in the chart. When a new trade joins this node, it selects the previous two business deals for verification and adds two new edges to the chart.

What is IOTA for IoT?

As mentioned in “What is IOTA,” IoT is the Internet of Things refers to many things, including objects and devices around us that are connected to the Internet and controlled and managed by applications on smartphones and tablets.

To make matters easier, suppose your home, mobile, and computer devices are connected to the Internet of Things. IOTA can be the currency and payment intermediary between these devices.

Using IOTA, a smart home can notify the repairman of a problem in the engine room and pay for the repair. Or if a lamp burns out, order it directly from the lamp store and even supply the kitchen utensils.

For example, your refrigerator can send the order to the store if it runs out of food and pays for it. This type of payment is called machine to machine (M2M). In this example, the refrigerator sends the digital currency to the seller’s computer. Shortly, it is possible that the solar panels on the roof of the house will sell the generated electricity without your knowledge and the currency obtained will be used to pay for other expenses.

All of these new features in IOTA are due to the huge difference that IOTA has compared to other cryptocurrencies. IOTA is a completely decentralized network. It does not use the technology of blockchain. The platform that Iota uses is a system called Tangle.

What is IOTA

IOTA Currency

How to mine IoT crypyo?

The answer to the “What is IOTA mining” is that there is no mining in IOTA. Thereby, the Minerland cryptocurrency cloud mining platform does not include this crypto in its mining portfolio. The Tangle is a data structure based on non-circular directional motion. Like Blockchain, this network is a distributed ledger, and everyone plays a role in the network. But the way this network works is completely different from the Blockchain.

The process of IOTA is as follows:

Whenever a user intends to send a transaction, the user’s wallet confirms the previous two transactions simultaneously and automatically, in this way the process continues.

As a result, network fees are reduced to zero, and transaction confirmation speeds vary according to network congestion.

To better understanding the difference between a blockchain and a tangle, consider the following example:

In a blockchain school, the teacher examines and grades students’ homework. For this, the teacher receives a salary. Also needs a lot of time to get all the assignments approved.

Now, in another school which is Tangle, the role of the teacher in the school has been eliminated due to the establishment of conditions. The students themselves check and grade the assignments of several of their classmates.

It eliminates the need to spend money on teacher salaries and also makes faster task achievement.

what is iota

How to mine IOTA?

What is IoT crypto’s advantage?

There are some advantages for IOTA rather than other cryptocurrencies as following:

  • IOTA is a distributed network and third-generation cryptocurrency. IoT crypto has new features that allow its users to make super-fast, fee-free transactions.
  • Trading Fee: The transactions are fast. The transaction fee or commission amount is zero.
  • Security: IOTA uses a technology called Signature Winternits to encrypt their transactions to increase security. This technology has a response system against the attack of quantum computers.
  • New ability: IOTA’s digital currency also has the potential to make the IoT more practical for the industry.
  • IOTA has a system for countering the aggressive actions of quantum computers.
  • IOTA has the potential to be used to make the IoT more practical.

IOTA market cap

IoT crypto market cap

What is IoT crypto’s buying method?

Everyone can buy IOTA from cryptocurrency exchanges. So, you can purchase it from many exchanges, including the well-known ones Bitfinex and Binance. There are generally two ways to buy IOTA:

  1. Direct purchase with traditional or fiat currencies such as Dollars. To buy digital currencies with dollars, you need international accounts such as Master or Visa cards. Buying cryptocurrencies directly in dollars is common all over the world. To buy cryptocurrencies with dollars, you need international accounts such as Master or Visa cards.
    Due to economic sanctions in some countries, direct purchases in dollars require a lot of intermediaries, which ultimately increases the cost. Also, there is the problem of registering users of countries under sanctions on reputable foreign sites.
  2. Convert other digital currencies such as Bitcoin and Ethereum to IoT crypto. This is the most common way to buy IOTA or other currencies, especially for users in countries under economic sanctions. In this way, they have to buy Bitcoin or Ethereum from reputable sites such as LocalBitcoins.com, using their traditional currency. Then transfer this Bitcoin or Ethereum to reputable exchanges and convert it to IOTA.

IOTA network

How to buy from IoT crypto exchange?

Binance Chinese Exchange is a good way to buy IoT crypto. Because the exchange office is Chinese, the possibility of sanctions and blocking the money is very low. This site is available for Iranian users

You can charge Bitcoins or other currencies in this exchange and buy IoT crypto or other currencies. This exchange can save your capital as a wallet. We suggest that you transfer your currencies to secure wallets after purchase.

Binance Exchange platform is a good environment for buying and selling IoT crypto and other cryptocurrencies. The risk of blocking this exchange is much higher for users of sanctioned countries. So try to transfer your money to a safe wallet immediately after purchase.

What is IoT crypto‘s Price History?

The four companies with the names of Sergey Ivancheglo, Serguei Popov, David Sønstebø, and Dominik SchienerIOTA are the founders and developers of IOTA currency.

In 2015, the super-precise amount of 999,999,999 sold out during mass sales. The sale generated revenue of 1,337 BTC for the foundation. Given that Bitcoin was only worth about $ 325 in 2015, we can consider that amount for the team in later years.

The price of IOTA on October 18, 2020, was 0.271487 USD. It had about $754,606,786 Market Cap value. It was ranking in the CoinMarketCap platform to #27. On 17 January 2021, the IOTA price was 0.427868 USD. Its trading volume in 24 hours was 46,491,775 USD. IOTA was down 5.19% in the last 24 hours.

The current ranking of CoinMarketCap is in Rank 32. The market cap of IOTA is 1,189,272,143 USD. It has a reserve circulation of 2,779,530,283 MIOTA coins. The maximum reserve of this currency is 2,779,530,283 MIOTA coins.

There are currently some exchanges for trading IOTA, for example, Binance, Huobi Global, OKEx, Upbit, and HitBTC.

IOTA chart

What is IoT crypto’s wallet?

IoT is also one of the types of cryptocurrencies. Therefore, you need a wallet to store this currency. Many companies have introduced wallets for this so far, but the IOTA official site has so far only accepted the network’s official wallet.

The official wallet of IOTA is called Trinity. Trinity is the only secure and verified wallet for IoT crypto. Trinity wallet designed to fit the needs of users. This wallet runs on Windows, Mac, and Linux operating systems.

In the official Iota wallet, we can use the network in two modes:

  • Full node mode means your direct connection to the network, and if you are a developer, you can use all the features of the network. Also, the fees are zero. The problem with Full Node is that you need high-speed Internet. Besides, you have to wait a while for the transaction to sync.
  • In Light Node mode, you use a large network of full nodes and do not connect directly to the network. This mode applies to the transaction, but the developers cannot use it well. Also, in Light Node mode, you do not need high-speed internet, but you have to pay a small amount of commission.

Each IOTA’s wallet has an 81-word string of letters and numbers called Seed. Having Seed means access to wallet amounts. Therefore, do not share your Seed with anyone and write it down in a safe place. In the official IOTA wallet, you can create your Seed by entering different letters and numbers.

The Iota Foundation is working to develop this cryptography. They are trying to increase the number of public wallets available to users in the future.

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