IOTA stands for Internet of Things Application. It’s a crypto
IOTA stands for Internet of Things Application. It’s a crypto technology facilitating transactions between devices on the Internet of Things (IoT).
IOTA addresses the issues with transaction fees and blockchain scalability by getting rid of the block and chain.
Instead, for submitting a transaction to the IOTA ledger, you have to verify two other previous transactions. This method of verification implies that there’s no central ledger, and there’s no any need for miners to power the network.
As the devices on the network verify each other’s transactions randomly, they build consensus via the web of connections between transactions.
In cryptography, this type of verification is known as Directed Acyclic Graph (DAG), but the creators of IOTA call it the Tangle.
As the network grows, the computing power in the Tangle too grows. IOTA is promising free and fast transactions. Also, it is designed to process all the micro-payments and payments between the machines, while facilitating an entire machine-to-machine micro-economy.
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How Does the IOTA Work?
The Internet of Things is dependably a major force in the world economy. Organizations are creating sensors, cameras, and other devices for monitoring the conditions in factories, farms, shipping lanes, homes and stores.
As indicated by a research from Gartner, IoT grew to 8.4 billion devices in 2017, and the outlook for future growth is exponential.
IOTA’s aim is to become the platform for M2M transactions. It’s founders started the company after working in the IoT industry, and they argue that for IoT to become the most useful, the devices in the network have to share and efficiently allocate the resources.
Now, this means the devices have to be able to buy more bandwidth, electricity, data or storage when they need it, and sell the resources when they don’t need them.
Even on a small network, this implies potentially dozens of transactions every second as devices communicate and use the resources.
With a lot of transactions, at such as small and fast scale, IOTA’s founder believe that blockchain technology is not adequate for IoT applications.
Blockchain network, no doubt, struggle with scalability, and they usually resort to charging fees in order for miners to add your transaction in a block sooner.
IOTA is aimed at solving both fees and scalability issues with its new network so that billions of IoT devices can use it effortlessly.
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The IOTA Team
The IOTA team has been actively developing blockchain technology since the year 2011, and developed the IOTA foundation and company in 2016.
Since its emergence, the team has been continuously growing and has been able to attract exceptional talent from across the world.
The IOTA CEO, David Sønstebø, has been widely acclaimed for his conservative marketing approach. His strategy looks to be focusing on establishing the sustainable growth and a strong strategic network rather than the PR circus seen in many other crypto projects today.
David has been handling IOTA’s PR and Blogging activities himself, both in line with this perceived strategy.
The IOTA team is comprised of a variety of talented individuals having a diverse range of expertise. Further, IOTA places a unique focus on attracting academics.
At press time, IOTA has established partnerships with universities like the Imperial College London, UCL and UC Berkeley.
In 2016, it even announced a partnership with Microsoft and rumors have been spreading about the IOTA & Volkswagen Furnishing Proof of Concept for Four-wheelers.
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