Ever heard of the internet-of-things? Well, this is the technology that is primed to bring the next industrial revolution. The idea behind this technology is to connect hardware to computer networks and allow machines to communicate with each other. The only problem with this is security. IoT systems are vulnerable to hacking attacks that may cripple major infrastructure equipment.
What is IOTA (MIOTA) cryptocurrency?
You are probably wondering, how does all this connect to the IOTA coin? Well, IOTA coin is the crypto coin inspired by blockchain technology that aims to bring in an element of security in the IoT space. While it mimics blockchain technology, IOTA is not based on it at all. It is simply an open source system that allows IoT technologies to work in a secure and low fees environment.
Who is behind IOTA?
IOTA was started in 2011 by the IOTA foundation which operates as a non-profit. The founding team was composed of David Sonstebo, Dominik Schiener, Sergey Ivancheglo, and Serguei Popov. Over the years, the number of people involved in IOTA has grown given that it is an open source system in which, anybody can bring in their ideas and improve on the existing ones. In developing this coin, the team focused on lowering transactional fees and scalability. These are the two issues that affect most cryptocurrencies like Bitcoin.
What are the defining characteristics of IOTA?
- IOTA has no transaction fees
The reason why IOTA has no fees is because it employs a different mechanism from that employed by blockchain based coins. While ordinary blockchain transactions require miners for verification, IOTA employs a system called Tangle. Under this system, transactions form new blocks which then verify themselves. This is what allows IOTA to create an enabling environment for new and revolutionary models of harnessing and analyzing data that comes from hardware devices.
- It’s highly scalable
One of the reasons why Ethereum picked up was due to Bitcoin’s scalability problems. Unfortunately, Ethereum too has its own scalability issues. This is where IOTA completely solves the puzzle. That’s because IOTA transactions don’t require any permission from anyone. This means thousands of transactions can take place instantly, and as well have machines make payments to each other.
- It allows for offline transactions
In blockchain cryptocurrency transactions like those of Bitcoin, network players must synchronize for a transaction to go through. This is something that IOTA’s tangle system completely does away with. The network can synchronize itself, which means transactions go through even when the system is offline. This makes IOTA the perfect coin even in environments where there is no internet connection.
How can one buy IOTA coin?
Like every other cryptocurrency out there, you buy IOTA through an exchange. The first thing you need to do is to open an account with any of the major cryptocurrency exchanges out there. Once you open an account with an exchange, you can buy IOTA either through fiat currency or using Bitcoin. You cannot buy IOTA directly without first buying BTC or depositing USD in an exchange.
Is IOTA cryptocurrency a good investment?
IOTA is a good investment if you are a long term thinker. That’s because, though the internet of things technology revolution has not yet captured the whole world, it is gaining traction quite first. In fact, tech experts believe the internet of things will be the next industrial revolution. By 2020, it is expected that more than 1 billion devices will be connected to the internet. Given that IOTA is all about connecting these devices, then it follows that it is one cryptocurrency that has a very strong upward potential.
On top of that, IOTA is still valued at a dollar. That means you do not lots of money to get yourself a sizeable number of IOTA coins. An investment in IOTA today would make you good money as more devices get attached to the internet. It would be the same as the people who made an investment in Bitcoin when it was worth pennies on the dollar. Today it is worth more than $8000. However, while investing in IOTA today is a great idea, it is imperative to restate the fact that it is best taken as a long-term investment.