What is Miota (IOTA)?

IOTA is a smart contract platform tailored for managing transactions, including payments, among internet-connected physical devices. MIOTA is the specific cryptocurrency token employed within the IOTA platform to streamline these transactions.

IOTA, an acronym for Internet of Things Application, operates as an open-source, permissionless distributed ledger facilitating feeless transactions and microtransactions among various devices within the Internet of Things (IoT).

IOTA adopts a distinctive method to tackle the issues of scalability and transaction fees commonly faced by blockchain technologies. It differs from traditional blockchains by abandoning the block and chain structure, employing a different architecture known as Directed Acyclic Graph (DAG), referred to by IOTA's creators as 'the Tangle.' Unlike typical blockchain systems, IOTA doesn’t rely on miners to sustain the network; instead, a sender confirms two previous transactions when submitting a transaction to the ledger.

Who are the founders of IOTA?

IOTA conducted its crowd sale in November and December 2015, raising $400,000, and stands as one of the leading cryptocurrencies delivering significant returns on investment for early backers (226,000% ROI). Currently, the IOTA Foundation, a German non-profit, supports and develops IOTA. Co-chairing the board of directors are IOTA founders David Sønstebø and Dominik Schiener.

Backed by a substantial team and renowned advisors, including the creator of Nxt, the Chief Digital Officer of Volkswagen, and former Fujitsu Central Europe head, among others across diverse industries, IOTA has demonstrated notable progress. A significant milestone is the recent launch of the Data Marketplace, leveraging IOTA's unique Tangle architecture to facilitate data stream storage and sales. Notable companies like Accenture Labs, Bosch, T-Mobile, and others actively participate in this network.

How does IOTA function?

The primary distinctive aspect of the IOTA distributed ledger is its departure from blockchain technology.

IOTA aspires to be the preferred platform for machine-to-machine (M2M) transactions, necessitating a free, rapid, and efficient means for network devices to exchange and allocate resources. Future IoT devices will likely engage in purchasing and vending bandwidth, storage, electricity, or data on-demand, potentially generating dozens of transactions per second at a rapid pace—something traditional blockchain technology struggles to accommodate due to scalability issues and gas costs.

The Tangle, IOTA's method, resolves both scalability and transaction fee challenges encountered by most blockchains by eliminating the necessity for dedicated nodes, thereby ensuring complete decentralization of the network.

Executing a transaction involves both transaction initiation and verification. The sender must perform a form of proof of work validating two preceding transactions. Consequently, the processing power and transaction speed on the IOTA ledger increase as the user base expands—a contrast to conventional cryptocurrency blockchains that slow down with increasing user numbers. As new devices join the network and intend to execute transactions, they contribute their computing power to the IOTA network.

Minus the requirement for miners (as IOTA users conduct the proof-of-work themselves), transaction costs equate to the electricity consumed in verifying two other transactions. The Tangle empowers IOTA to operate without fees, further enhancing network decentralization. Unlike blockchain technology where the network decentralization is limited to miners, the Tangle ensures distribution among every participating node.

To establish itself as the backbone of the M2M economy, IOTA must remain fee-free. Servicing IoT devices necessitates facilitating transactions at fractions of a penny with high frequency—any imposition of gas fees would render microtransactions impractical.

What Sets IOTA Apart?

IOTA epitomizes uniqueness, primarily through its reimagined blockchain technology, Tangle. Both its value proposition and business model distinguish IOTA significantly from other blockchain-based cryptocurrencies, attracting both admiration and criticism.

In terms of its value proposition, IOTA derives value from offering feeless transactions, near-instant transaction validation, and limitless scaling potential. Its design includes several other advantages, such as lower energy consumption compared to most cryptocurrencies, contributing to the network's extensive versatility and functionality.

While many of IOTA's groundbreaking features are currently considered "potential" due to the underutilization of the network in terms of users, the low entry price of the MIOTA coin, coupled with the network's remarkable capabilities, remains highly appealing to investors.

What are use cases of IOTA?

IOTA has been exploring various real-world applications and partnerships that showcase its potential across different industries. Here are five top real-world use cases that were prominent at that time:

▪️ Internet of Things (IoT) Connectivity: IOTA aims to revolutionize the IoT landscape by providing a secure and seamless protocol for communication and transactions between IoT devices. It enables machines to transfer data, verify authenticity, and execute microtransactions without fees, facilitating the growth of smart cities, connected vehicles, and more.

▪️ Supply Chain and Logistics: IOTA's Tangle technology offers transparency and security in supply chains by tracking goods throughout their journey. It ensures data integrity, prevents counterfeiting, and enables real-time monitoring, benefiting industries like logistics, retail, and manufacturing.

▪️ Decentralized Identity and Authentication: IOTA's unique features allow for secure and tamper-proof identity management. It can be applied to establish decentralized identities, secure access to devices, and manage authentication without the need for intermediaries, enhancing data security and privacy.

▪️ Energy Sector Applications: IOTA has been exploring applications in the energy sector, particularly in the realm of microgrids and renewable energy. It enables peer-to-peer energy trading, facilitates machine-to-machine payments, and supports data integrity in energy-related transactions.

▪️ Healthcare Data Integrity: IOTA's tamper-proof and immutable nature is well-suited for securing healthcare data. It could potentially ensure the integrity and privacy of patient records, enable secure data sharing among healthcare providers, and streamline processes in the healthcare industry.

What are the recent developments of IOTA?

IOTA conducted its crowd sale in November and December 2015, raising $400,000, and stands as one of the leading cryptocurrencies delivering significant returns on investment for early backers (226,000% ROI). Currently, the IOTA Foundation, a German non-profit, supports and develops IOTA. Co-chairing the board of directors are IOTA founders David Sønstebø and Dominik Schiener.

Backed by a substantial team and renowned advisors, including the creator of Nxt, the Chief Digital Officer of Volkswagen, and former Fujitsu Central Europe head, among others across diverse industries, IOTA has demonstrated notable progress. A significant milestone is the recent launch of the Data Marketplace, leveraging IOTA's unique Tangle architecture to facilitate data stream storage and sales. Notable companies like Accenture Labs, Bosch, T-Mobile, and others actively participate in this network.

In July 2018, IOTA announced a partnership with the European Commission, initiating a project focusing on smart city technology for Europe and other global regions.