What Is Iota?
Iota is a term that stands for the Internet of things. The technology itself is a cryptocurrency that focuses on mass scalability and the elimination of transaction fees within blocking technology. The unique concept with this cryptocurrency involves the idea of users within the network verifying the IOTA network in order to eliminate their own transaction fees. In order for IOTA to be traded a user must first verify at least two previous transactions within the ledger.
What this changes in cryptocurrency is that idea that there is a method of verification without a central ledger. This completely eliminates the idea of miners being responsible for the ledger technology. Devices on the network will verify each other’s transactions through a build consensus.
What this creates is a web of connections between each transaction. The version of verification here is considered to be a directed acyclic graph and the creators of the IOTA coin call it tangle.
IOTA & Tangle will continue to grow together within the network. IOTA continues to promise a fast and free transaction in exchange for the Tangle service. IOTA & Tangle can be responsible for the processing of a series of payments and micropayments which can often lead to improvements in the micro-economy between machines. IOTA continues to make large promises and although the technology is considered to be brand-new, it is looking like a safe bet in the crypto market because of this new concept bringing down transaction fees.
There is so much competition when it comes to cryptocurrency but IOTA & Tangle can offer something that no competitor has previously thought of.
How IOTA works:
The Internet of things is widely considered one of the greatest driving forces in world economies. It’s no wonder that the creators of this cryptocurrency wanted to tip their hats to this concept. There are companies today that are creating various sensors, devices and more that are working to generate more efficiency and interconnectedness within the Internet of things. There’s roughly 8.4 billion smart home devices and the network for these devices is set to grow considerably.
The vision for IOTA as a cryptocurrency is to eventually allow for machine to machine transactions between some of these smart devices. The founders have begun working on various out rhythms that could result in a way for the network to allocate its resources effectively and allow for trades between smart home devices.
Devices that have access to data, storage, electricity and bandwidth would be able to buy and sell resources as directed. This could completely change the idea of crypto trading with dozens of free transactions happening across devices in any given space.
A small network could easily manage a massive number of trades throughout IOTA & Tangle. This can lead to a much faster scaling than we have seen in any other type of crypto network before.
As many of the top blockchain based cryptocurrencies have struggled with scalability, the founders of IOTA & Tangle are suggesting that this new method could result in a faster adoption. And an overall reduction in fees.
At the base, IOTA is not blockchain tech:
IOTA eventually plans on having billions of nodes when it’s properly implemented. With the scalability of smart home devices, it is not too surprising that this could be a possibility. The design of The Tangle is the main architecture that this system is built on. Any device that submits a transaction has to first verify two other transactions within the network. The verification often involves the verifier performing a series of small proves in order to link the transactions with the full Tangle.
Although it’s closely related to the idea of blockchain technology, the sheer number of devices and the low amount of memory that’s required makes the whole system free use. Over time, future transactions will continue to verify the network and the network can only continue to scale without having to rely on a type of central ledger.
Every new device that added into the network also contributes to the computing power which can lead to more transactions and a chance for more coins on IOTA to be traded.
How IOTA will stay free to use:
As users will continue to contribute their own computing power to the network with IOTA & Tangle, every transaction is basically paid for in electricity. The electricity that takes to verify two other transactions and the cost of that electricity is minimal especially when compared to the overall cost of transactions on a blockchain network. The fee-free system on IOTA also ensures that the network can be more evenly distributed than a central blockchain. The participating nodes and the overall absence of fees will ultimately attract more devices into the network.
At extremely high frequencies of trades, the cost of transactions will be often less than a penny and this can make the idea of any type of micro-payment much more feasible when compared to blockchain technology.
The machine to machine economy can start up using some of these micro-transactions and the coin can continue its free to use background. IOTA & Tangle are a backbone of a new type of cryptocurrency that will finally support mass scalability and free use.
IOTA is proprietary technology:
The technology behind IOTA & Tangle has received criticism and praise as a technology platform. The IOTA hash function is its own proprietary technology as well. Called “Curl” this proof within the network and key generation tech handles the hashing function within applications on the platform. The technology for IOTA & Tangle also uses Trinary Logic for the base of the tech over traditional binary technology. The advancements in this technology are really working to separate the program from the rest of the technology in the crypto market.
IOTA & Tangle are trending in the market today because of the massive promise that they represent to the cryptocurrency market. This cryptocurrency that breaks free from blockchain could represent an innovation for the future of digital currency worldwide.
Where and how to buy Iota Coin?
If you have read about IOTA and you are interested in learning more about where you can invest in the coin it’s important to consider that there are a number of reputable areas to begin. In understanding how to buy Iota Coin, you can often find a number of sources for the coin. These are some of the most reputable places to buy the coin, however:
Binance: This is a system that trades to the largest range of cryptocurrencies online. It’s known for its extremely high liquidity as well as for the chance to offer support in multiple languages. There are many deposit methods available and the system can include the option to buy Iota Coin with a credit card as well as a series of other cryptocurrencies.
Huobi: This exchange features over 190 pairs of cryptocurrencies. It is widely trusted and considered to be one of the premier places for picking up Iota Coin. This exchange is an easy place to get started with the coins and for a quick transaction.
BitFinex: This location delivers a spot trade for a variety of major cryptocurrencies. There is a margin trading platform as well as a full-featured exchange on this market. The only drawback to purchasing Iota Coin on Bitfinex is that you have to start with a minimum opening deposit of at least $10,000. If you are truly serious about investment, this is one of the most trusted platforms currently available.
Bitpanda: As Europe’s leading broker for buying and selling cryptocurrency, this is an extremely trusted place to pick up Iota coins. With several different membership options, you can access features that can improve your experience on the platform. The options here only continue to improve as the system grows in its popularity. It stands as one of the best places for European investors to check begin purchasing this cryptocurrency.
Units of Iota Coins you can buy:
When you are learning how to buy Iota Coin is quite possible that you may hear a variety of different increments or payment options for Iota Coin. There are many different terms that you should consider when you go to buy Iota. Keeping some of these in mind can help you learn more about the process of trading and make sure that you get access to the right amount of coins to start your investment.
Some of the top units that you may consider buying can include:
An Iota Coin: This is a single version of the coin which currently trades for roughly $.30 US in 2018.
Ki Kiota: This represents 1000 of the Iota Coins.
Miota or Mi: This is 1 million Iota Coins.
Giota or GI: This is 1 billion Iota Coins.
Tiota or TI: This is 1 trillion Iota Coins.
Piota or PI: This is one quadrillion Iota Coins.
Although you can purchase the Iota Coins and keep them on the exchange for some time, there’s a good chance that you may want to withdrawal some of your earnings so that you can eventually trade them privately or exchange them for real money. Securing some of your Iota Coins when you have invested heavily can also prevent the chance of theft as many of the largest cryptocurrency exchanges can even regularly fall under attack.
How to get an Iota Coin wallet:
The idea of an Iota coin wallet is slightly different from the idea of other types of cryptocurrency wallets. Because the currency is not developed within the blockchain it delivers a series of challenges that are slightly different with the wallet technology. There are three main types of wallets for holding Iota Coin:
Full Node GUI wallet: this style of wallet is accessed on your local computer with a GUI. The node needs to connect with neighbours through a static IP address in order to properly function. The IOTA ecosystem requires a series of connections and proofs in order to maintain the network. The GUI tutorials that you can download with the wallet will walk you through the process of connecting and what is actually required before you can access the network.
Light wallet: This local interface is the perfect way that you can collect Iota Coin without having to add it to another network. The seed on the network will never actually leave your computer. You can run a light node using a tutorial and learn more about this extremely safe and secure way that you can keep your Iota Coinstructured primarily to your devices.
Headless node: This is another solution for running a wallet on your local hardware. It uses a UI which is referred to as nostalgia and these works are nothing more than a browser extension. It has many of the same requirements as the full GUI node but it can be much easier to set up. The other advantage that you can receive by using this solution is that it can allow for multiple seeds or multiple accounts that you can keep Iota Coins in. This could be the perfect option for investors that are interested in using many types of Iota Coin accounts. It’s an excellent way that you can diversify your investment in the future. The setup difficulty with multiple accounts can alternately add to a bit of extra hassle so the GUI wallet comes recommended if you are looking for a simple solution.
Android wallet: An android digital wallet for Iota Coin can also be a very clean solution that you can use when paired with a local exchange. This type of mobile wallet can help you constantly access your Iota Coins. It offers a very simple solution that you can use for a mobile wallet as well. The setup difficulty with this system is as simple as downloading an application and then transferring some of your balance from an exchange to the new wallet. The android wallet is also an excellent way that you can execute trades to other wallets while you are on the go.
By following some of his top advice you can work at investing in Iota Coins with a reputable source and then holding the funds in your account using the best online wallet.