Introduction to IOTA Coin
IOTA is a dispersed ledger structured to record and implement transactions between machines and devices on the Internet of Things (IoT) network system. The IOTA’s ledger has its cryptocurrency named MIOTA, and it utilizes the said token for checking the transactions in its network. The IOTA Foundation, which is a non-profit organization that is responsible for the IOTA’s dispersed ledger. This foundation has legible contracts and arrangements with renowned companies, such as Bosch and Volkswagen, for extending the IOTA platform’s usage and effectiveness amongst the connected devices on the network. Founders of IOTA define the said ledger as open consent-less support for the Internet of Things that will facilitate interoperability between numerous devices.
IOTA’s key objective is to solve scalability and performance with Bitcoin by substituting its blockchain technology with the Tangle network. This Tangle technology or network is nothing but a system of nodes wherein each new transaction will confirm the preceding two transactions in the network. IOTA also aims to become the common medium of conducting transactions on devices. The IOTA’s system works differently. If anybody wishes to use the system for fund transfer, they have to also contribute to the network’s working process by verifying other people’s transactions.
Pros & Cons of IOTA Coin:
- Free of charge transactions.
- Instant and quick transactions are possible in due course.
- Infinite and unrestricted scalability.
- Its system can process any data, including financial transactions.
- IOTA is not mined. Instead, it is contributed to the network by everyone.
- It is Quantum resilient.
- IOTA is not yet a complete finished product.
- The project has till now depicted a lot of technical shortcomings and problems
- Uncertainty and no clarity regarding completion of the project.
- IOTA network is said to have a lack of security problem
- A centralized coordinator is required at this current stage of the project.
History of IOTA Coin
IOTA was created in 2015 by four experts: David Sønstebø, Sergey Ivancheglo, Dominik Schiener, and Dr. Serguei Popov. IOTA Coin was founded in Berlin, Germany. Ivancheglo, Schiener, and Popov contributed to completing the mathematical, statistical, and programming section of the unique Tangle system, and David Sønstebø led the whole project as a Leader and Mentor. IOTA originally was formed as a hardware project whose goal was to design, structure, and create general-purpose processors at a meager cost. Initially, at the time of its creation, 2,779,530,283,277,761 IOTA coins were issued and circulated in the market. However, no more IOTA coins can be produced, and mining is also not possible in IOTA coins. Hence, there will be no more circulation of new IOTA coins in the market. Instead, the original quantity of coins will only keep on rolling and circulating. Further, some months after the token launch, the IOTA foundation transformed its platform into an accessible and uncluttered distributed system for possibly processing more IOTA coins in due course.
IOTA Price Prediction and Future Growth
Since the IOTA token is volatile, therefore there are a lot of price fluctuations of the token. Like other digital currencies, the IOTA price is also affected by factors such as media attention, corporate partnerships, market situation, political governance, and so on. The price of the token has been steadily growing since it was created. However, in 2017, with the market’s downfall, IOTA’s market capitalization had also substantially gone down, which continued till 2019. However, in 2020, the IOTA currency again picked up in the market. At the beginning of the year 2020, IOTA started with a market capitalization of USD 446 million. By the end of 2020, it had reached above USD 900 million. The industry experts speculate the price of IOTA to reach USD 122 by 2022 -2023, which is the top of the bell curve. Then it might start slacking down to a bearish approach of USD 25 in 2024 – 2025 as per the concept of the product life cycle. Click here to learn more about detailed IOTA price prediction by CryptoNewsZ.
The medium to long-term future growth of IOTA depends on the future growth and success of the Internet of Things (IoT) concept’s full-fledged materialization. In the future, if the IoT devices continue to grow and capture more market, the IOTA Coin will be an extremely successful crypto token, which will then be able to serve the purpose efficiently of facilitating machine-to-machine easy and straightforward transactions.
As per the industry experts, IOTA is a relatively new, somewhat experimental portion of technology – Internet of Things (IoT). Therefore, it should not be surprising to see some unexpected and volatile twists and turns in the future. However, the experts have been outspoken about the opportunities and the new technology tied up with this IOTA cryptocurrency that may seek huge demand for currency shortly.
To summarize, IOTA is a protocol based on the proof of work consensus method and has its blockchain network named Tangle, which is used for mining the MIOTA digital tokens. The aim of IOTA, in simple terms, is to enable transactions between connected devices and to make it easily accessible to anyone. IOTA has its own set of problems regarding scaling, some aspects susceptible to hacking, and so on. The tangled network provides IOTA Coin with few main advantages against the conventional blockchain technology. First, IOTA eradicates the requirement for miners, then secondly, it permits relatively infinite scaling to its users, and thirdly, it is Quantum proof. IOTA also has a lot of potential to be utilized on a worldwide dimension. In all, it can be said that IOTA digital currency has its plus and minus points, but still, it can be considered as one of the potential investment options in the market as of date.