IOTA(IOTA) Reviewed: The Ingenious Blockchainless Coin
For today’s post, I did a comprehensive review of IOTA(IOTA).
IOTA (IOTA) is a distributed ledger for the Internet of Things(IoT) that does not make use of the conventional blockchain.
It rather uses a quantum-proof protocol that is known as Tangle — a Directed Acyclic Graph(DAG).
IOTA’s Tangle has no fixed limit on how many transactions that can be confirmed per second in the network.
Instead, the throughput grows in conjunction with activity in the network; i.e. the more the activity, the faster the network.
This IOTA review will provide you with all the details about the IOTA project, exchanges to buy/sell IOTA, top wallets for holding IOTA, and its prospects for the future.
Now, I invite you to journey with me into the interesting world of IOTA.
IOTA Review Summary
The discussion of today will be hinged on the following points:
- Introduction to IOTA
- How It Works
- Top Exchanges to Buy/Sell IOTA in Nigeria
- Where Can I Store My IOTA?
- Frequently Asked Questions(FAQs)
You will have the full details of any point displayed to you when you click on it.
Having known the itinerary, go on and tighten your seat belts.
We are about to hit the road.
Introduction to IOTA
IOTA, as I mentioned earlier, is both a platform and a coin.
IOTA is a permissionless distributed ledger for a new economy.
It prides itself as an Internet of Things application platform that does not make use of a blockchain.
*The Internet of Things(IoT) is an ecosystem of physical devices — vehicles, appliances, etc.
These devices possess the ability to connect, collate, collect and exchange data with little/no human intervention.
To better understand what IOTA is bringing to the table, think of a situation where you visit a provision store to buy items.
But instead of picking your items and taking them to the counter to calculate the cost, make payments, and then do some weight lifting by taking them to your car, you do something really simple.
You just take out your phone, choose the items you want to buy, pay online and a machine takes them to your car or even directly to your home; saving you time and stress.
Won’t that be an interesting development?
The beauty of the IOTA platform lies in the fact that it allows everyone the opportunity to make payments for items from any part of the world — free of charge!
If you are sending 10,000 NGN from Nigeria to Ghana, you will pay 10,000NGN only without any transaction fee.
IOTA was founded in 2015 by David Sonstebo, Sergey Ivancheglo, Dominik Schiener, and Dr. Serguei Popov.
IOTA is overseen by the IOTA Foundation, a non-profit organization.
The foundation is dedicated to developing the technology and maintaining it license-free for all developers to work with.
They have also established collaborations with companies like Volkswagen, Innogy, Fujitsu, etc.
IOTA went into the beta test like most others in 2016.
But it got off to speed in 2017 with the injection of a considerable amount of money for its development, marketing and upgrade.
It made its debut in June 2017 as MIOTA at Bitfinex (one of the world’s largest exchanges).
But how does IOTA work?
I explained that explicitly in the next section.
How IOTA Works
It rather uses a peculiar Tangle log that is based on the DAG-directed acyclic graph.
Directed — because all the reference pointers point in the same direction.
Acyclic — because you cannot follow the path from any one transaction and arrive back at the same transaction (in other words, no loops).
Graph — because the reference pointers and transactions form a graph of edges and vertices
With Bitcoin and some other altcoins, everything is stored on the blocks — transactions, data, etc.
However, with IOTA, transactions follow a special network.
In order to make a transaction in the Tangle network, you have to validate 2 previous transactions.
For instance, transaction C confirms transactions A and B.
The reward for doing so is that your own transaction will be validated by some subsequent transactions.
This kind of system ensures the network runs efficiently and at a lesser cost.
It gives no room for delayed transactions (no scalability issues) and fees.
Since transactions verify older transactions, it simply means that:
More transactions/increased activity = faster validation of transactions
Lesser transactions/decreased activity = slower validation of transactions
Having learnt how IOTA works, read on to the next section to know the best exchanges to purchase IOTA from.
Top Exchanges to Buy/Sell IOTA in Nigeria
There are a number of reputable exchanges where you can buy/sell your IOTA.
The list includes:
1. Binance Binance
Binance(culled from binary + finance) is a household name in the crypto world.
Founded in China by Changpeng Zhao, it is a trading platform for IOTA and more than 500 crypto pairs.
It recently(October 2019) moved into the Nigerian market with its partnership with Flutterwave, a global payment technology.
Thus, users from Nigeria can purchase cryptos with their credit/debit cards via the Binance Fiat Gateway.
2. Coindirect Coindirect
Coindirect is a cryptocurrency exchange that was launched in 2017.
It offers 2 types of accounts to its users:
- Personal account: With this, you can trade 24/7 and enjoy other services from Coindirect
- Business account: This helps merchants integrate cryptocurrency into their business.
3. HitBTC HitBTC
HitBTC was founded by experienced system architects and technology experts in 2013.
It is run by HIT Solution Limited, a Hong Kong-based company.
The platform offers tools and features that will enable users to engage in real-time trade with high reliability.
It has more than 800 trading pairs and the supported cryptocurrencies include:
- IOTA, e.t.c
Payment option: Credit/ Debit Cards.
4. Changelly Changelly Team
Changelly( which was once a subsidiary of the Minergate team but not anymore) was launched in 2015.
The supported cryptocurrencies include:
- Bitcoin (BTC)
- Litecoin (LTC)
- Monero (XMR)
- Dash (DASH)
- IOTA(IOTA) and 100+ more
Where Can I Store My IOTA?
The best wallets where you can store IOTA include:
1. Ledger Wallet Ledger
This is because your coins are kept offline. They are produced by a French company called Ledger.
In November 2018, IOTA Foundation announced its collaboration with Ledger to integrate IOTA tokens.
The Ledger wallets enable users to protect their private keys.
This enables them to access their IOTA tokens in a state-of-the-art secure chip.
Its products include Ledger Nano S, Ledger Nano X, Ledger Blue, etc.
- A Complete Review of Ledger Nano S
- Ledger Nano X: A Smart Upgrade of Nano S
- Ledger Blue Review(2020): 5 Top Things to Note
2. Trinity Wallet
IOTA’s official wallet is Trinity.
It has a beautiful user interface.
It also keeps you up to date with the current value of IOTA across a range of currencies.
Trinity Mobile is out on both iOS and Android.
The desktop version is available on Windows, Mac, and Linux.
Simply choose the right option for your operating system.
3. Nostalgia Wallet
This is a desktop wallet for IOTA.
It has a complex user interface that is only for experts.
Nostalgia is available for Windows, Linux and Mac operating systems.
4. IOTA Wallet (Android) IOTA Foundation
This is an open-source wallet designed to offer fast and easy access to your IOTA holdings.
It is free to download and use and also easy to interact with. Its features include:
- QR code support
- Seed generator
- Seed password protection
- Ability to view your current IOTA balance in a range of currencies
- Tangle explorer with the search function
Click here to access the wallet.
I will now answer some very important FAQs about IOTA below.
Just keep reading.
Frequently Asked Questions(FAQs)
How does the IOTA Foundation make money since there is no transaction fee?
IOTA is an open-source distributed ledger.
It is being built to power the future of the Internet of Things(IoT) with feeless microtransactions.
You can think of it as the open-source Hyper-Text Transfer Protocol (HTTP).
It serves as the foundational protocol for the World Wide Web.
No organization owns these open-source protocols because it cannot be owned.
In the same way, the IOTA Foundation is mandated to:
– develop the open-source IOTA protocol further
– bring the protocol to production-readiness
– enable a pathway for its full-scale adoption
One way the foundation makes money is from the initial IOTA tokens.
These were donated by the IOTA community during the crowd sale.
The donated tokens still constitute a significant portion of the Foundation’s assets.
Note that the IOTA total token supply will remain fixed forever.
Thus, an increase in the demand of the tokens (as its protocol is been adopted into the machine economy and IoT industries) will directly result in a rise in its value.
Another way is from grants from different governments to perform research and development.
The foundation also functions with donations from individuals or enterprises.
Can I mine IOTA?
The total IOTA token supply was “minted” on the genesis transaction and will never change.
It is now impossible for anyone to “mint” or “mine” new tokens.
What is the total IOTA token supply?
The total coin supply is (3³³ — 1) / 2 = 2,779,530,283,277,761 tokens.
This value is optimized for ternary computation — it is the largest possible 33-digit ternary number:
111,111,111,111,111,111,111,111,111,111,111 (base-3) = 2,779,530,283,277,761 (base-10)
IOTA uses the International System of Units (or SI units).
What is MIOTA?
MIOTA is equal to 1 million IOTA.
What is the difference between IOTA’s Tangle and the Blockchain?
Is It Safe to Invest in IOTA?
IOTA stands out from other cryptocurrencies in that it:
– has zero transaction fees
– allows for micro-transactions to be conducted on its platform
– facilitates fast, efficient and reliable transactions
– (the project) looks set to becoming a driving force in the same direction as the internet of things
– ranks number 18 on coinmarketcap.com with a market cap value of $956,262,349 and 1 IOTA = $0.344037
**Figures from CMC as of 3rd Feb. 2020.
This coin shows signs of a bright future considering its collaboration with some of the world’s largest consortium like:
– Microsoft, etc.
In the future, it’s likely that IOTA will turn out to be one of our most widely developed technologies.
But you should not be carried away when making cryptocurrency investments.
Only invest what you can afford to lose.
Here is the last part of this post and so far, you have learnt:
- all about IOTA and how it works
- exchanges and wallets to use
- other facts about this IoT coin via the FAQs
I am sure you’ve written down some questions and comments.
But before we get to that, let me know your thoughts on these:
Do you think DAG technology will be adopted by more coins?
Is there a possibility that IOTA will move up the ranking table in the nearest future(putting into cognizance the efforts of the IOTA team)?
Do you own IOTA and what was your experience acquiring the coin?
Leave your answers, contributions, and questions(if any) in the comment section below.
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Originally published at https://www.nigeriabitcoincommunity.com on February 4, 2020.