What is IOTA (MIOTA)? The beginner’s guide

IOTA (MIOTA) is a cryptocurrency based on a new data structure called “Tangle”, which does not require blocks, chains and miners. One of the main applications of IOTA technology, according to the developers, is the Internet of Things (IoT).

The main idea of ​​the project was to create a convenient means of payment for the implementation of the futurological concept of the Internet of Things (IoT, “Internet of Things”).

In a simple way, IoT is a network of devices connected to the Internet and equipped with electronic chips for transmitting and processing data.

How does it look in practice?

For example, the refrigerator is automatically defrosted when you press the desired button on your smartphone. Or a fitness bracelet measures the physiological indicators of your body during a workout and sends reports to your iPhone. Most of the existing technologies with the prefix “smart” belong to the category of IoT.

In the group, Sonstebo decided to create a special platform for IoT with secure communication channels and the original payment unit (IOTA).

According to the developers, with the help of such a platform, users will be able to sell or rent their technological resources to other people — equipment or even hard disk space. Holders of electronic databases will be able to sell megabytes of free space, and large corporations could sell data about their products in real time (for example, information about the state of household appliances).

How does IOTA differ from other cryptocurrencies?

First of all, the developers created new data structure called “Tangle”, a unique blockless technology.

Tangle is an extensive system that is constantly evolving in different directions. The technical side of the issue is described in detail on the official IOTA Foundation website.

IOTA creators managed to solve all major problems of Bitcoin and other blockchain-based networks: low transaction processing speed, obligatory commission fees for payment, a strong dependence on miners, difficulties with microtransaction, poor scalability, slower work under heavy loads and tight quotas for the volume and number of transactions.

Some experts calls IOTA a worthy alternative to Bitcoin. However, over the course of several years of the existence of the coin, only the developers themselves, and the investors who invested in a startup, knew all its possibilities. And only now, when IOTA broke out into the world top cryptocurrency, many traders paid attention to the coin. However, many still do not know how to mine it, where to buy and in which crypto wallet to store.

How to mine IOTA?

To everyone’s surprise, no way.

The developers managed to create a truly decentralized payment platform. Others have serious problems with it. For example, the main control levers of Bitcoin’s network belong to the major miners, or the creators of Ripple keep 65% of all issued coins.

IOTA’s users themselves control the system. All coins (and there are almost 3 quadrillion) have already been issued and placed in the system. Users do not need to mine them (everything is ready) and do not have to depend on miners, discovering new blocks.

Is it worth investing in IOTA?

Most experts agree that IOTA is a project with excellent prospects.

Experts say that in the next two years we will have a massive development of IoT, so the need for technical solutions for the “Internet of things” will only grow. And IOTA Foundation has already proposed such solutions. An open and fast payment system for conducting transactions has been created, and work on microprocessors will begin soon. That is, IOTA is not just another cryptocurrency, but a means to support very relevant technology.