IOTA is a next-gen distributed ledger technology designed in Germany. Its associated cryptocurrency is MIOTA (Mega IOTA or Millions of IOTA). It mainly aims to revolutionize the space of the Internet of Things (IoT). Due to the unique attributes, it currently has a top-ten spot as per the Coinmarketcap. In this article, we will take a gander at deep insights and unexplored aspects of IOTA for IoT.
In true essence, IOTA for IoT aims to:
- Bolster the 4.0 industry (Fourth Industrial Revolution) and effectively form its backbone. IOTA has gained significant public support from giant digital currency exchanges and established organizations.
- Lay the foundation for real-time, secure transactions between internet-connected machines.
- Developed with payment and machine to machine communication in mind, it aims to be the go-to currency for the transactions within the IoT ecosystem.
In case if you aren’t sure about IoT, although it’s rare to happen, the Internet of Things refers to as the future network of internet-connected physical devices, home appliances, cars, etc. that can be managed and controlled by a digital watch, mobile, desktop, or tablet.
In longer terms, IoT can help us make ideas such as smart homes, smart cities, intelligent transportation, and smart grids, a reality.
Firstly, let’s understand the potential of MITOA and IOTA.
As per experts, IoT would consist of more than 30 million objects by 2020.
Ericsson states that “Things that can get benefit from being connected, should be connected.” Now, this certainly looks to be the case.
The mechanism of IOTA for IoT
IOTA is slightly different from the legacy blockchain platforms. It uses an inventive technology called ‘Tangle.’
The Tangle is a unique data structure that uses Directed Acyclic Grap or DAG.
What is Tangle?
For a more detailed explanation, refer to this blog.
However, the necessary thing to know is that:
- It has no chain
- It has no blocks
- And no miners – IOTA doesn’t get mined
As a matter of fact, except IOTA, no other cryptocurrency is using the Tangle technology.
IOTA employs a uniquely different distributed ledger architecture. Therefore, aspects of IOTA are not similar to other Blockchains and thus, gets called ‘Blockless.’
The method to achieve consensus in IOTA is also different. It’s a type of ‘Proof of Work.’
Why is IOTA different from others?
At a high level, IOTA and the associated Tangle technology have four significant differences.