IOTA (MIOTA) is a new and fast-growing cryptocurrency that aims at being the backbone, solving the problem of scalability and security of the internet-of-things (IoT) ecosystems.
IOTA (MIOTA) was created to allow microtransactions and nano payments without any fees, which would create an entirely new paradigm in the world of cryptocurrency and blockchain.
With this guide, you’ll be informed about the history, the risks involved, and how to buy IOTA (MIOTA).
How does IOTA (MIOTA) work?
IOTA (MIOTA) is a kind of distributed ledger that aims to provide secure transactions between machines of the Internet of Things and provides proof of authentication via its technology called Tangle. It does not use the same blockchain technology as Bitcoin or Ethereum, which makes it unique in the realm of cryptocurrencies. This means that there are no miners, which means that there are no fees.
IOTA (MIOTA) uses distributed ledger technology, which means; all transactions are stored in an online database called “Tangle” instead of being updated by a central authority (like banks). This way, you can access your records and verify them without being authorized by anyone, thereby avoiding the concentration of power in the hands of a few or any other single party that could compromise system stability and security.
How to buy IOTA (MIOTA)
IOTA (MIOTA) is traded on many crypto exchanges such as Binance or Bitfinex. It can be bought using fiat money like USD or Euro, or by trading your selected crypto like BTC or ETH. After purchasing IOTA, you can leave it in the exchange or transfer your balance to a more secure wallet.
To buy IOTA with Bitcoin, you must first purchase Bitcoin on another exchange and then transfer it to a crypto exchange to trade for IOTA.
History of IOTA (MIOTA)
IOTA (MIOTA) was created in 2015 by David Sonstebo and later Sergey Ivancheglo, Serguei Popov, Dominik Schiener joined, and they all co-founded IOTA. Its main goal is to create a machine-to-machine payment system to interact without human interaction for each transaction. It does not need mining (like Bitcoin) but rather uses what is called “Tangle,” which in more technical terms, is a data structure called DAG (Directed Acyclic Graph) which ultimately allows transactions to be confirmed by users without the need for fees.
IOTA cryptocurrency was created with open-source code released on GitHub. It has been designed specifically for IoT applications. Currently, IOTA is one of the top cryptocurrencies as it has been chosen by companies such as Microsoft and Fujitsu for its platform. The company’s goal is to have a fully connected infrastructure that allows machine-to-machine interactions through their blockchain technology. This can be advantageous in various industries.
As you can read, IOTA (MIOTA) is making a name for itself in the cryptocurrency world. IOTA definitely solves a very significant problem: fees. The upside of also providing a secure network for IoT can have a big upside potential. But as with all investments, things can come to do a downfall. We recommend you to do your diligent research before investing in IOTA (MIOTA).
IOTA (MIOTA) FAQ’s
What are the transaction fees on IOTA (MIOTA)?
There are no transaction fees in IOTA. IOTA users are required to simply authenticate two other transactions in the Tangle.
How does the IOTA tangle work?
Every time a user makes a transaction, he must validate and complete two other transactions in the Tangle. This way, transactions are authenticated by the network as a whole, which does not require miners to process and confirm transactions.
Does IOTA have a competition?
The most well-known rivals of IOTA include Bitcoin, Monero, nano, Litecoin, Ripple, and Ethereum.
How is IOTA different from Bitcoin?
IOTA allows for the transfer of data through their system without charging fees. This is possible via their self-developed technology Tangle, which basically can be described as a system of nodes confirming transactions. It is also designed to be used for machines, unlike Bitcoin that was created for human-to-human payments.
What gives the value of IOTA (MIOTA)?
The price of IOTA is determined by supply and demand on cryptocurrency exchanges. Consequently, its value is speculative since it does not have any intrinsic value like other commodities such as gold or silver. With the low volume and market cap, IOTA is still an easy target for large market cap players.
Are there any wallets for IOTA (MIOTA)?
Yes, there are wallets for IOTA (MIOTA). The most popular IOTA wallets are the Ledger Hardware Wallet and Trinity Software Wallet.
What can I use IOTA (MIOTA) For?
IOTA’s potential use cases are many. It can potentially be used to send/receive regular fiat currencies (e.g., USD, Euro) in addition to other offerings like data transfer via the network or even for smart-grid related applications such as receiving real-time energy prices from your local utility company and automatically buying power when it is cheapest using the Tangle network.
What are the risks involved in purchasing?
All cryptocurrencies come with a certain degree of risk, and while IOTA (MIOTA) is becoming more mainstream, there are always risks. First, the cryptocurrency market is volatile and unpredictable. Cryptocurrencies are not regulated, which means that IOTA (MIOTA) has no governmental backing and insurance. As such, if the system were to be hacked or compromised, you’d lose all of your investment.
How secure is IOTA (MIOTA)?
IOTA (MIOTA) is well-tested and trusted by security experts. The IOTA network encrypts all data with a unique cryptography scheme called ternary encryption, making it exponentially more difficult to crack than traditional binary systems. This security helps to ensure it is safe.
Is Tangle better than Blockchain?
Tangle is more scalable and flexible than Blockchain. Tangle’s scalable data units allow the technology to move and process tiny transactions. Transactions are completed extremely swiftly in this system.