Major pros and cons of the crypto coin IOTA

IOTA is a new transaction settlement for the internet of Things. IOTA is here to combat the inefficiencies of the current blockchain model by introducing a new way performing transaction through a peer to peer system, or what is called a tangle.

IOTA was released in June 2016, and today has a market cap of over $10 billion. The crowd sale was released in Dec 2015, and it rose over $500k in Btc.

Since then IOTA has raised lots of discussion on bitcoin forums. Some even compare IOTA to bitcoins.

However, today, we are going to discuss the cons and pros of IOTA.

Let’s start with the misconceptions.

The first misconception is that IOTA has no transaction fee. Yes, With IOTA, you don’t need to pay any tokens to have for your transactions to be implemented in the distributed ledger. However, the security of the network in proportion to the amount of Proof of Work done per second.

Each transaction still demands a fee, except that it is the form of POW. You have to spend computation power. For some people, this is perfect, but CPU resources are limited. Also, it is only a matter of time before ASIC processors will be released for IOTA. These will make local Proof of Work slow. The difficulty will also be increased to maintain a high PoW cost.