Not so long ago in the digital world appeared a promising technology based on cryptography, the purpose of which is to facilitate the transaction between two computers connected to the Internet. It is thanks to a wide range of possibilities that a new platform called IOTA was able to quickly take the leading positions in the cryptocurrency market. The IOTA abbreviation can be unraveled as Internet of Things Application.
Using the capabilities of blockchain, IOTA developers were able to solve the difficulties with scalability and using the chain of confirmations when creating blocks. Unlike classical cryptocurrency, IOTA works without the use of a central register. To control currency exchange in the IOTA, you just need to check the two previous operations. Consideration of transactions takes place at random, creating a consensus, called the DAG (Directional Acyclic Chart), but in the IOTA module it is known as Tangle.
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Due to the constant growth of the community size, the computational power of Tangle increases, which ensures fast and, most importantly, free transactions. This technology is ideal for micro-payments and the development of the micro-economy as a whole.
IOTA is confident that their platform should serve as a basis for device-to-device transactions and be responsible for IoT's work by effectively allocating resources. The use of power only when it is necessary is one of the main advantages of IOTA. Proceeding from the fact that IOTA does not want to limit the number of nodes of its network and charge commission fees, the Blockchain technology is not entirely suitable for the operation of IoT applications.
Joining the network of a new computer gives additional power when making payments. The internal function of Tangle eliminates the blocking of blocks, so IOTA banknotes were created during the development of the network.
An important issue for the platform remains the security and vulnerability of the network. After all, if 34% of the processing power is concentrated in one hand, it will be possible to influence the operation of the remaining part of the devices. For the sake of justice, it should be noted that at the moment it is almost impossible to accumulate 34 percent or more of the network, because the platform has grown to huge sizes.
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Against the backdrop of constant disputes about the efficiency of IOTA, as a platform, the capitalization of the same cryptocurrency increased to $ 6 billion. As we can see, the new technical process attracts large investments and has the potential for further growth.
Editor: Yuliya Soroka