IOTA (Internet of Things Application) is an innovative distributed ledger technology that uses a decentralized approach that removes the need for a blockchain. The primary objective of IOTA is to establish a framework for the Internet of Things (IoT) ecosystem. When it comes to cryptocurrency, the IOTA cryptocurrency is unique in the way that it doesn’t collect transaction fees and doesn’t rely on miners to carry out transactions.
A key distinction between IOTA and other cryptocurrencies is that it does not employ a blockchain architecture, but rather, its architecture is based on a DAG (Directed Acyclic Graph). The Tangle network architecture is a mechanism for authenticating transactions on a distributed ledger that supports the IOTA protocol. This novel distributed ledger system is quite similar to how Bitcoin (BTC) operates on a blockchain.
But in addition to enabling fast transactions and zero-fee transactions, Tangle’s architecture also allows for limitless scalability and safeguarded sharing of sensitive data. Because it eliminates the transaction fees requirement, the IOTA currency system may also be used to perform micropayments.
The IOTA cryptocurrency project also has its own coin, which goes by the name of mIOTA (IOTA). Let’s examine it more closely.
What Is MIOTA?
The native coin of the IOTA open-source distributed ledger technology is called mIOTA (short for ‘mega IOTAs’), however, it’s frequently referred to by the platform’s name. This cryptocurrency project was developed by a group of crypto enthusiasts led by David Sontesbo, Serguei Popov, Dominik Schiener, and Sergey Ivancheglo. The coin was launched in 2015, and it’s supported by the Germany-based IOTA Foundation.
IOTA’s developers envisioned this ledger as a public permission-less framework for the Internet of Things that would promote interoperability across a multitude of platforms and digital devices. The fundamental goal of the IOTA project was to discover a solution to some of the key issues with Blockchain technology, such as scalability, transaction speed, and reduction of the costly transaction fees.
Do IOTA Transactions Still Get Confirmed Without Miners on the Network?
As previously stated, IOTA employs cutting-edge Tangle technology. The IOTA Tangle is a directed acyclic graph (DAG) that’s used to overcome the scalability and transaction cost issues that blockchain-based cryptocurrency initiatives often encounter.
Since the platform is not based on a blockchain, there’s no need for miners to validate the transactions. Instead, a transaction on the IOTA distributed ledger can be completed after the user has approved two prior transactions.
In simple terms, the IOTA network requires everyone who wishes to transmit funds via the network to also contribute to the network by validating the transactions of other users. In this way, the network becomes more scalable as the number of individuals who utilize the IOTA system rises. As there’s no physical limit to the number of activities that may be performed by the network every second, the network is referred to as infinitely scalable in this context.
The IOTA 3-Step Verification Process of Transaction
The Tangle network is composed of independent computers (referred to as nodes) that are responsible for generating and verifying the payment operations. To validate a transaction on the Tangle network, nodes must complete several stages.
To begin with, the network of nodes must choose two transactions to be confirmed by users. The IOTA protocol accomplishes this through the use of the Markov Chain Monte Carlo (MCMC) selection method.
MCMC is a collection of statistical methods that use a simulation technique to identify the probable distribution samples. These samples are then selected with the help of the chain optimization technique.. As a result, the growing number of users ultimately leads to an increase in transaction volume. Blockchain-based cryptocurrencies, for instance, function the other way around.
Following the verification process, the nodes must ensure that the transactions do not contradict one another. When two transactions compete with one another, the nodes must determine which transaction will be the orphan block (a valid block that fulfills all the conditions for inclusion in the ledger but is nonetheless denied). An algorithm is employed once again to determine which transaction would be orphaned.
Finally, nodes must complete a cryptographic assignment to complete the process. In this way, the process of constructing a transaction and the operation of verifying transactions become intricately bound. The IOTA protocol employs the Hashcash Lite Proof of Work method, which enables a wide range of computing technologies to execute payments on the Tangle network. This makes the iota platform free to use, as users provide the proof of work evidence themselves.
How to Buy IOTA Coins
There are various ways for an investor to obtain the IOTA platform’s digital assets. The most common way to get IOTA coins is through cryptocurrency exchanges such as Binance or Bitfinex. Furthermore, the eToro trading platform allows you to buy IOTA tokens with a number of fiat currencies and payment methods, including a credit card.
The following crypto exchanges list MIOTA coins for buying, selling, or trading on the cryptocurrency market: Coinbase, Binance, CoinSpot, Bitfinex, Coinone, OKEX, HitBTC, Huobi.pro, Gate, etc.
The Best IOTA Wallets for Your Cryptocurrency
IOTA coins should be stored in a crypto wallet for the improved safety of your digital currency. IOTA wallets are divided into five categories: hardware wallets, desktop wallets, mobile wallets, exchange wallets, and online wallets.
Among them, hardware wallets are the most commonly used form of IOTA wallet among cryptocurrency traders. In terms of accessibility and ease of use, web wallets are the most accessible and user-friendly type of wallet available.
There are a variety of cryptocurrency wallets available that can store your IOTA coins in a simple and safe manner. Some of the most popular ones include Ledger Nano S Wallet (Hardware Wallet), Ledger Nano X Wallet (Hardware Wallet), Trinity Wallet (Software Wallet available for both iOS and Android devices), Nostalgia Light Wallet (supported by Windows, Mac, and Linux operating systems), IOTA GUI Client (Software Wallet), Guarda (Web Wallet available for Android), as well as the IOTA Paper Wallet.
If you want to save your MIOTa coins offline, the IOTA Paper Wallet is an excellent storing solution since it’s free and it eliminates the need for acquiring a hardware wallet. After generating the paper wallet, you may print it out and use it to transfer your MIOTA assets to it.
What Is the Total Supply of IOTA Coins?
According to CoinCap, there is a predetermined number of IOTA tokens in circulation, while the system does not produce additional supply by computational means. With a market cap of $4,311,151,018 USD, the total supply of this coin amounts to 2,779,530,283 MIOTA coins, which is equal to its circulating supply.
All of the IOTA coins in circulation were generated in the platform’s genesis block (i.e. the first transaction block) and later sold to investors during IOTA’s initial coin offering (ICO) that took place in 2015.
A Few Words Before You Go…
IOTA’s primary aim was to find a solution to some of the most pressing problems associated with Blockchain technology, including scalability, transaction speed, and fee reduction. It was projected as a technological solution for the Internet of Things that would facilitate transactions between linked devices and would be open to anybody. The end product was a Directed Acyclic Graph (DAG) network design that eliminated the requirement for a blockchain, which practically eliminated its weak points, too.
While the costs of other blockchain networks, such as Ethereum and Bitcoin, have grown dramatically, owing mainly to increased transaction volume, the IOTA platform offers fast transactions with no fees due to the removal of miners as a requirement for transaction confirmation. Finally, the fact that it allows fee-free micro-transactions across all linked devices, makes the IOTA network a bright prospect for new crypto projects.