IOTA — The Future of IoT and Blockchain

What Is IOTA?

IOTA is one of the major encrypted currencies in the world, with a market value of $11.8 billion. IOTA uses an interesting distributed ledger technology to implement decentralization. Different from standard blockchain technologies used by most companies, IOTA depends on a method called tangle.

Advantage of IOTA: Zero Service Fee

IOTA is not new; it came out in 2015. The purpose of its design is to allow machines to trade with each other on the IoT network, especially for smaller transactions. With the development of IoT, smart devices have increasing demands on interoperability and resource sharing. IOTA urges companies to develop new modes to transform technology resources into potential services and perform real-time trade on a public market.

Architecture of Tangle

The elimination of service fees should make users encouraged no matter how far this technology can go. The consensus algorithm of IOTA becomes an inherent part of the IOTA system, which implements a symmetric network with the self-adjustment capability. This technology is very different from the mining mechanism of the blockchain.

Byteball — A New Competitor to IOTA?

As an “archeological” enthusiast in the technology field, I’m curious about the source of IOTA idea. After I explained IOTA, a project named Byteball also used the DAG structure.

Conclusion

IOTA is unusual in the world of blockchain due to its tangle structure and trio-logic PoW algorithm. However, IOTA’s zero service fee, good extensibility, and close relationship with IoT makes it an irresistible trend. If the idea of IOTA can be fully implemented, the future of IoT can flourish.

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