IOTA is an open-source distributed ledger protocol launched in 2015 that goes ‘beyond blockchain’ through its core invention of the blockless ‘Tangle’. The IOTA Tangle is a quantum-resistant Directed Acyclic Graph (DAG), whose digital currency ‘iota’ has a fixed money supply with zero inflationary cost.
IOTA uniquely offers zero-fee transactions & no fixed limit on how many transactions can be confirmed per second. Scaling limitations have been removed, since throughput grows in conjunction with activity; the more activity, the more transactions can be processed & the faster the network. Further, unlike blockchain architecture, IOTA has no separation between users and validators (miners / stakers); rather, validation is an intrinsic property of using the ledger, thus avoiding centralization.
IOTA is focused on being useful for the emerging machine-to-machine (m2m) economy of the Internet-of-Things (IoT), data integrity, micro-/nano- payments, and other applications where a scalable decentralized system is warranted.
As part of this development, the IOTA Ecosystem DLT Foundation shall receive an initial endowment of over $100 million in IOTA tokens over the span of four years.
Among the different cryptocurrencies in the crypto space, three have shown huge potential and use cases in recent months – IOTA (MIOTA), Chiliz (CHZ), and Pomerdoge (POMD).
Cryptocurrency is still a fledgling industry that can be volatile at times. As a result, investors must conduct a thorough study and assess a coin’s prior performance before investing huge sums of money.
