Get to know IOTA, a new criptomoeda suitable for making free microtransactions and optimized for the Internet of Things ( IoT ), which, unlike the complex and heavy structure of Bitcoin and other blockchain-based currencies, was created to be as light as possible, hence the name "IOTA" that emphasizes its main vocation, which is to serve the IoT , Internet of Things.
IOTA is a totally different technology from all the existing currencies, and represents a radical change of paradigm. It is a cryptocurrencies that does not use the blockchain, thus managing to solve the limitations of the currencies arising from Bitcoin .
- A new technology, called tangle, is the basis of the IOTA network, giving it numerous superior qualities, among which we highlight:
- Tremendous scalability and speed;
- Inexistence of rates, which allows infinitesimal microtransactions (nanotranslation);
- Resistant to attacks by quantum computation;
- Modular and lightweight structure suitable for integration into any devices in the Internet of Things ( IOT ) environment.
This new currency is undoubtedly the biggest technological advance since the creation of Bitcoin , and the first reason is precisely the fact that it does not use blockchain. In other words, it is a solution that has the potential to overcome and render obsolete all the currencies that have emerged so far.
The problem with currencies that use blockchain is that the more transactions are carried out, the more expensive the tariffs are, sacrificing the possibility of performing microtransactions, the slower the network becomes, and the size of storage required to maintain a node gets bigger . Bitcoin is a clear example: it no longer works without the payment of ever-increasing mining fees. Transactions smaller than 0.01 btc are hardly accepted by miners. And, when accepted, there is a queue for processing transactions, in an increasingly time-consuming manner. And with the ever-increasing blockchain, the wallet occupies a huge space on the computer, forcing ordinary users to use light nodes, which reduces everyone's safety, since to be safe, the peer to peer network needs of more complete nodes (full nodes, rather than light nodes).
Forget the blockchain, iota uses technology called "tangle", which promotes a real decentralization of the transaction processing in the network, since each node, when making transactions, is encouraged to contribute with Proof of Work (PoW) for the benefit of the network as a whole. In this way, each new transaction performs a PoW of its own that validates previous transactions.
At IOTA there are no miners and no privileged nodes limiting the use of the network. It is a truly decentralized network in which each node is important.
Each node is important because the more transactions occur in the IOTA network, the faster they stay, and the more efficient and secure the network as a whole, because the entire PoW is performed exactly during transactions. This is an incredible breakthrough, as it is precisely here that Bitcoin's failure and the like suffer from the large increase in the number of transactions, slowing down. The blockchain allows the formation of real traffic jams, causing rates to increase in order to remedy their limitations. A problem of the past with IOTA.
The biggest of the resulting advantages is that not only micro transactions are possible ... more up to ... nano transactions become something trivial, and are carried out for free, without fees, without fees, since they do not overload the network, but yes they do.
Another great advantage, an innovation of IOTA, is that not necessarily a node needs to be connected to the Internet to work in sync with the network, since nodes can be interconnected in a variety of ways, including bluetooth, for example.
As if there were not enough advantages, it was also designed to withstand quantum computing, a reality these days.
However, even with all these advances, the specific objective of IOTA is not to "compete" by replacing blockchain coins, but rather to create a "symbiosis", in which both technologies act with mutual benefits. And as I said, IOTA's main focus is on the Internet of Things ( IoT ), being adopted in this industry as currency in the M2M (machine-to-machine) market that is in full formation today ... more or less something of the type:
your car has an iota wallet with 100,000 balance iotas. When you refuel, the fuel pump sensor will automatically charge your iota wallet the corresponding value, for every liter you serve;
you park your car, and the parking sensor debits, minute by minute, the iotas due, during the time that the vehicle stays parked;
your refrigerator detects that your beer stock is low. She immediately sends the order to the nearest supermarket, and the purchase price is debited from the iotas balance of the refrigerator integrated portfolio;
streaming video or pay-per-view debiting your smart TV per minute assisted;
renting of vehicle directly debiting by time or per kilometer;
numerous other uses, which require continued micropayments, and which are not feasible using technology limited by blockchain.
That is why the entire structure of IOTA is designed in a light and modular way so as to be easily integrated with electronic equipment. And there are already big companies eyeing this technology, which is becoming a reality. Thus, the initial interest in the purchase of Iotas is on the part of developers and companies in these technological areas of automation and IoT .