IOTA is the creation of the German nonprofit organization, the IOTA Foundation, which came into existence in 2015 by David Sønstebø (business and technology expert), Dominik Schiener, Sergey Ivancheglo, and Dr. Serguei Popov (doctor of mathematics). These four remain the most crucial parts of IOTA’s core team, with every one of them being involved in the crypto community for a number of years prior.
IOTA also works in “partnership” (more on that later) with over 20 companies, which include Microsoft and Fujitsu, to launch a new data marketplace. This marketplace will be powered by distributed ledger technology, and the shareholders are encouraged to securely provide their data with IOTA tokens.
The IOTA Foundation also developed “The Big Deal” community funding project, which has the target of enticing and involving developers and corporations within the IOTA sphere. Participant individuals in The Big Deal get a share of IOTA tokens in return for their knowledge, developers, media publicity, and resources. Most of those involved in The Big Deal are not yet publicly known for legal reasons, but connections formed through The Big Deal can potentially increase both the value and practical use of IOTA.
How Does IOTA Work?
IOTA is the only crypto around which does not utilise blockchain technology. Instead, it uses another type of network, called a Tangle. According to IOTA’s website, the benefits of using Tangle include: a lack of fees, speedy transactions, secure data transfer and transactions can be conducted on infinite scales. Other aspects include pay-on-demand and micropayment abilities. IOTA was created to be “the backbone of the internet of things”, and fully supports secure machine-to-machine (m2m) communication.
First- and second-generation blockchains such as Bitcoin and Litecoin utilise transaction fees as a way to keep those using the network from spamming it. One transaction on the Bitcoin network costs around $0.50. This traditional model presents a potential issue for widespread, mainstream utilisation of Bitcoin as a substitute for fiat currency. The large volume of transactions that would be caused by many smaller Payments
Payments
One of the bases of mediums of exchange in the modern world, a payment constitutes the transfer of a legal currency or equivalent from one party in exchange for goods or services to another entity. The payments industry has become a fixture of modern commerce, though the players involved and means of exchange have dramatically shifted over time.In particular, a party making a payment is referred to as a payer, with the payee reflecting the individual or entity receiving the payment. Most commonly the basis of exchange involves fiat currency or legal tender, be it in the form of cash, credit or bank transfers, debit, or checks. While typically associated with cash transfers, payments can also be made in anything of perceived value, be it stock or bartering – though this is far more limited today than it has been in the past.The Largest Players in the Payments IndustryFor most individuals, the payments industry is dominated currently by card companies such as Visa or Mastercard, which facilitate the use of credit or debit expenditures. More recently, this industry has seen the rise of Peer-to-Peer (P2P) payments services, which have gained tremendous traction in Europe, the United States, and Asia, among other continents.One of the biggest parameters for payments is timing, which looms as a crucial element for execution. By this metric, consumer demand incentivizes technology that prioritizes the fastest payment execution.This can help explain the preference for debit and credit payments overtaking check or money orders, which in previous decades were much more commonly utilized. A multi-billion-dollar industry, the payments space has seen some of the most innovation and advances in recent years as companies look to push contactless technology with faster execution times.
One of the bases of mediums of exchange in the modern world, a payment constitutes the transfer of a legal currency or equivalent from one party in exchange for goods or services to another entity. The payments industry has become a fixture of modern commerce, though the players involved and means of exchange have dramatically shifted over time.In particular, a party making a payment is referred to as a payer, with the payee reflecting the individual or entity receiving the payment. Most commonly the basis of exchange involves fiat currency or legal tender, be it in the form of cash, credit or bank transfers, debit, or checks. While typically associated with cash transfers, payments can also be made in anything of perceived value, be it stock or bartering – though this is far more limited today than it has been in the past.The Largest Players in the Payments IndustryFor most individuals, the payments industry is dominated currently by card companies such as Visa or Mastercard, which facilitate the use of credit or debit expenditures. More recently, this industry has seen the rise of Peer-to-Peer (P2P) payments services, which have gained tremendous traction in Europe, the United States, and Asia, among other continents.One of the biggest parameters for payments is timing, which looms as a crucial element for execution. By this metric, consumer demand incentivizes technology that prioritizes the fastest payment execution.This can help explain the preference for debit and credit payments overtaking check or money orders, which in previous decades were much more commonly utilized. A multi-billion-dollar industry, the payments space has seen some of the most innovation and advances in recent years as companies look to push contactless technology with faster execution times. Read this Term would, in turn, result in a large volume of fees.
IOTA finds a solution to this problem by being a zero-fee currency. The transaction fees on the Bitcoin network would discourage users from using Bitcoin for smaller purchases on an everyday scale. IOTA has no transaction fees and is therefore much better-suited to both practical and m2m (machine-to-machine) use.
IOTA as an Investment
IOTA’s value has fluctuated over time just like many Cryptocurrencies
Cryptocurrencies
By using cryptography, virtual currencies, known as cryptocurrencies, are nearly counterfeit-proof digital currencies that are built on blockchain technology. Comprised of decentralized networks, blockchain technology is not overseen by a central authority.Therefore, cryptocurrencies function in a decentralized nature which theoretically makes them immune to government interference. The term, cryptocurrency derives from the origin of the encryption techniques that are employed to secure the networks which are used to authenticate blockchain technology. Cryptocurrencies can be thought of as systems that accept online payments which are denoted as “tokens.” Tokens are represented as internal ledger entries in blockchain technology while the term crypto is used to depict cryptographic methods and encryption algorithms such as public-private key pairs, various hashing functions, and an elliptical curve. Every cryptocurrency transaction that occurs is logged in a web-based ledger with blockchain technology.These then must be approved by a disparate network of individual nodes (computers that maintain a copy of the ledger). For every new block generated, the block must first be authenticated and confirmed ‘approved’ by each node, which makes forging the transactional history of cryptocurrencies nearly impossible. The World’s First CryptoBitcoin became the first blockchain-based cryptocurrency and to this day is still the most demanded cryptocurrency and the most valued. Bitcoin still contributes the majority of the overall cryptocurrency market volume, though several other cryptos have grown in popularity in recent years.Indeed, out of the wake of Bitcoin, iterations of Bitcoin became prevalent which resulted in a multitude of newly created or cloned cryptocurrencies. Contending cryptocurrencies that emerged after Bitcoin’s success is referred to as ‘altcoins’ and they refer to cryptocurrencies such as Bitcoin, Peercoin, Namecoin, Ethereum, Ripple, Stellar, and Dash. Cryptocurrencies promise a wide range of technological innovations that have yet to be structured into being. Simplified payments between two parties without the need for a middle man is one aspect while leveraging blockchain technology to minimize transaction and processing fees for banks is another. Of course, cryptocurrencies have their disadvantages too. This includes issues of tax evasion, money laundering, and other illicit online activities where anonymity is a dire ingredient in solicitous and fraudulent activities.
By using cryptography, virtual currencies, known as cryptocurrencies, are nearly counterfeit-proof digital currencies that are built on blockchain technology. Comprised of decentralized networks, blockchain technology is not overseen by a central authority.Therefore, cryptocurrencies function in a decentralized nature which theoretically makes them immune to government interference. The term, cryptocurrency derives from the origin of the encryption techniques that are employed to secure the networks which are used to authenticate blockchain technology. Cryptocurrencies can be thought of as systems that accept online payments which are denoted as “tokens.” Tokens are represented as internal ledger entries in blockchain technology while the term crypto is used to depict cryptographic methods and encryption algorithms such as public-private key pairs, various hashing functions, and an elliptical curve. Every cryptocurrency transaction that occurs is logged in a web-based ledger with blockchain technology.These then must be approved by a disparate network of individual nodes (computers that maintain a copy of the ledger). For every new block generated, the block must first be authenticated and confirmed ‘approved’ by each node, which makes forging the transactional history of cryptocurrencies nearly impossible. The World’s First CryptoBitcoin became the first blockchain-based cryptocurrency and to this day is still the most demanded cryptocurrency and the most valued. Bitcoin still contributes the majority of the overall cryptocurrency market volume, though several other cryptos have grown in popularity in recent years.Indeed, out of the wake of Bitcoin, iterations of Bitcoin became prevalent which resulted in a multitude of newly created or cloned cryptocurrencies. Contending cryptocurrencies that emerged after Bitcoin’s success is referred to as ‘altcoins’ and they refer to cryptocurrencies such as Bitcoin, Peercoin, Namecoin, Ethereum, Ripple, Stellar, and Dash. Cryptocurrencies promise a wide range of technological innovations that have yet to be structured into being. Simplified payments between two parties without the need for a middle man is one aspect while leveraging blockchain technology to minimize transaction and processing fees for banks is another. Of course, cryptocurrencies have their disadvantages too. This includes issues of tax evasion, money laundering, and other illicit online activities where anonymity is a dire ingredient in solicitous and fraudulent activities. Read this Term around. Its peak market cap was in December of 2017, where it was valued at over $14 billion. However, since then it has come down to just over $5 billion at the turn of the year. It has been growing steadily since April, having reached a low of around $2.5 billion.
coinmarketcap.com
IOTA is currently traded on several major exchanges with the company planning on adding more in the future. Binance, Bitfinex, Coinone, OKEx, and Exrates are the ones that carry the coin at this moment.
MAny believe that IOTA’s technical value is not truly reflected in the current monetary valuation as it is still a concept that is to be fully realised. There are aspects of it which can be improved in the future as the Internet of Things fulfills its potential. Therefore, there is a lot of potential for the network to go further.
IOTA has a native wallet, the IOTA GUI Client. This wallet can be installed on a user’s desktop or as a mobile app. There is also an option for a paper wallet, which adds an extra layer of security.
Scandals and Controversy
On the whole, IOTA has not endured much in the way of scandals. However, there are still some aspects to consider and highlight in terms of controversy.
In January of this year, the wallets of some users were emptied by individuals operating malicious online seed generators. There were also Github wallets that were hacked, but this is (unfortunately) a fairly common incident in the cryptosphere.
Another aspect that’s already been mentioned is IOTA’s controversial relationship with Microsoft. It was initially suggested that the companies were in a partnership but it later emerged that the two had no formal working relationship, and that Microsoft was merely a participant in this case. It is unclear whether this was just misunderstanding by the media or deliberate misleading by IOTA.
There have also been some accusations of bullying and intimidation by certain factions of their team according to a Financial Times article, which claimed that IOTA does not take kindly to criticism. This can even be seen by their failed relationship with TheNextWeb, which was highlighted by IOTA’s official tweet:
IOTA is the creation of the German nonprofit organization, the IOTA Foundation, which came into existence in 2015 by David Sønstebø (business and technology expert), Dominik Schiener, Sergey Ivancheglo, and Dr. Serguei Popov (doctor of mathematics). These four remain the most crucial parts of IOTA’s core team, with every one of them being involved in the crypto community for a number of years prior.
IOTA also works in “partnership” (more on that later) with over 20 companies, which include Microsoft and Fujitsu, to launch a new data marketplace. This marketplace will be powered by distributed ledger technology, and the shareholders are encouraged to securely provide their data with IOTA tokens.
The IOTA Foundation also developed “The Big Deal” community funding project, which has the target of enticing and involving developers and corporations within the IOTA sphere. Participant individuals in The Big Deal get a share of IOTA tokens in return for their knowledge, developers, media publicity, and resources. Most of those involved in The Big Deal are not yet publicly known for legal reasons, but connections formed through The Big Deal can potentially increase both the value and practical use of IOTA.
How Does IOTA Work?
IOTA is the only crypto around which does not utilise blockchain technology. Instead, it uses another type of network, called a Tangle. According to IOTA’s website, the benefits of using Tangle include: a lack of fees, speedy transactions, secure data transfer and transactions can be conducted on infinite scales. Other aspects include pay-on-demand and micropayment abilities. IOTA was created to be “the backbone of the internet of things”, and fully supports secure machine-to-machine (m2m) communication.
First- and second-generation blockchains such as Bitcoin and Litecoin utilise transaction fees as a way to keep those using the network from spamming it. One transaction on the Bitcoin network costs around $0.50. This traditional model presents a potential issue for widespread, mainstream utilisation of Bitcoin as a substitute for fiat currency. The large volume of transactions that would be caused by many smaller Payments
Payments
One of the bases of mediums of exchange in the modern world, a payment constitutes the transfer of a legal currency or equivalent from one party in exchange for goods or services to another entity. The payments industry has become a fixture of modern commerce, though the players involved and means of exchange have dramatically shifted over time.In particular, a party making a payment is referred to as a payer, with the payee reflecting the individual or entity receiving the payment. Most commonly the basis of exchange involves fiat currency or legal tender, be it in the form of cash, credit or bank transfers, debit, or checks. While typically associated with cash transfers, payments can also be made in anything of perceived value, be it stock or bartering – though this is far more limited today than it has been in the past.The Largest Players in the Payments IndustryFor most individuals, the payments industry is dominated currently by card companies such as Visa or Mastercard, which facilitate the use of credit or debit expenditures. More recently, this industry has seen the rise of Peer-to-Peer (P2P) payments services, which have gained tremendous traction in Europe, the United States, and Asia, among other continents.One of the biggest parameters for payments is timing, which looms as a crucial element for execution. By this metric, consumer demand incentivizes technology that prioritizes the fastest payment execution.This can help explain the preference for debit and credit payments overtaking check or money orders, which in previous decades were much more commonly utilized. A multi-billion-dollar industry, the payments space has seen some of the most innovation and advances in recent years as companies look to push contactless technology with faster execution times.
One of the bases of mediums of exchange in the modern world, a payment constitutes the transfer of a legal currency or equivalent from one party in exchange for goods or services to another entity. The payments industry has become a fixture of modern commerce, though the players involved and means of exchange have dramatically shifted over time.In particular, a party making a payment is referred to as a payer, with the payee reflecting the individual or entity receiving the payment. Most commonly the basis of exchange involves fiat currency or legal tender, be it in the form of cash, credit or bank transfers, debit, or checks. While typically associated with cash transfers, payments can also be made in anything of perceived value, be it stock or bartering – though this is far more limited today than it has been in the past.The Largest Players in the Payments IndustryFor most individuals, the payments industry is dominated currently by card companies such as Visa or Mastercard, which facilitate the use of credit or debit expenditures. More recently, this industry has seen the rise of Peer-to-Peer (P2P) payments services, which have gained tremendous traction in Europe, the United States, and Asia, among other continents.One of the biggest parameters for payments is timing, which looms as a crucial element for execution. By this metric, consumer demand incentivizes technology that prioritizes the fastest payment execution.This can help explain the preference for debit and credit payments overtaking check or money orders, which in previous decades were much more commonly utilized. A multi-billion-dollar industry, the payments space has seen some of the most innovation and advances in recent years as companies look to push contactless technology with faster execution times. Read this Term would, in turn, result in a large volume of fees.
IOTA finds a solution to this problem by being a zero-fee currency. The transaction fees on the Bitcoin network would discourage users from using Bitcoin for smaller purchases on an everyday scale. IOTA has no transaction fees and is therefore much better-suited to both practical and m2m (machine-to-machine) use.
IOTA as an Investment
IOTA’s value has fluctuated over time just like many Cryptocurrencies
Cryptocurrencies
By using cryptography, virtual currencies, known as cryptocurrencies, are nearly counterfeit-proof digital currencies that are built on blockchain technology. Comprised of decentralized networks, blockchain technology is not overseen by a central authority.Therefore, cryptocurrencies function in a decentralized nature which theoretically makes them immune to government interference. The term, cryptocurrency derives from the origin of the encryption techniques that are employed to secure the networks which are used to authenticate blockchain technology. Cryptocurrencies can be thought of as systems that accept online payments which are denoted as “tokens.” Tokens are represented as internal ledger entries in blockchain technology while the term crypto is used to depict cryptographic methods and encryption algorithms such as public-private key pairs, various hashing functions, and an elliptical curve. Every cryptocurrency transaction that occurs is logged in a web-based ledger with blockchain technology.These then must be approved by a disparate network of individual nodes (computers that maintain a copy of the ledger). For every new block generated, the block must first be authenticated and confirmed ‘approved’ by each node, which makes forging the transactional history of cryptocurrencies nearly impossible. The World’s First CryptoBitcoin became the first blockchain-based cryptocurrency and to this day is still the most demanded cryptocurrency and the most valued. Bitcoin still contributes the majority of the overall cryptocurrency market volume, though several other cryptos have grown in popularity in recent years.Indeed, out of the wake of Bitcoin, iterations of Bitcoin became prevalent which resulted in a multitude of newly created or cloned cryptocurrencies. Contending cryptocurrencies that emerged after Bitcoin’s success is referred to as ‘altcoins’ and they refer to cryptocurrencies such as Bitcoin, Peercoin, Namecoin, Ethereum, Ripple, Stellar, and Dash. Cryptocurrencies promise a wide range of technological innovations that have yet to be structured into being. Simplified payments between two parties without the need for a middle man is one aspect while leveraging blockchain technology to minimize transaction and processing fees for banks is another. Of course, cryptocurrencies have their disadvantages too. This includes issues of tax evasion, money laundering, and other illicit online activities where anonymity is a dire ingredient in solicitous and fraudulent activities.
By using cryptography, virtual currencies, known as cryptocurrencies, are nearly counterfeit-proof digital currencies that are built on blockchain technology. Comprised of decentralized networks, blockchain technology is not overseen by a central authority.Therefore, cryptocurrencies function in a decentralized nature which theoretically makes them immune to government interference. The term, cryptocurrency derives from the origin of the encryption techniques that are employed to secure the networks which are used to authenticate blockchain technology. Cryptocurrencies can be thought of as systems that accept online payments which are denoted as “tokens.” Tokens are represented as internal ledger entries in blockchain technology while the term crypto is used to depict cryptographic methods and encryption algorithms such as public-private key pairs, various hashing functions, and an elliptical curve. Every cryptocurrency transaction that occurs is logged in a web-based ledger with blockchain technology.These then must be approved by a disparate network of individual nodes (computers that maintain a copy of the ledger). For every new block generated, the block must first be authenticated and confirmed ‘approved’ by each node, which makes forging the transactional history of cryptocurrencies nearly impossible. The World’s First CryptoBitcoin became the first blockchain-based cryptocurrency and to this day is still the most demanded cryptocurrency and the most valued. Bitcoin still contributes the majority of the overall cryptocurrency market volume, though several other cryptos have grown in popularity in recent years.Indeed, out of the wake of Bitcoin, iterations of Bitcoin became prevalent which resulted in a multitude of newly created or cloned cryptocurrencies. Contending cryptocurrencies that emerged after Bitcoin’s success is referred to as ‘altcoins’ and they refer to cryptocurrencies such as Bitcoin, Peercoin, Namecoin, Ethereum, Ripple, Stellar, and Dash. Cryptocurrencies promise a wide range of technological innovations that have yet to be structured into being. Simplified payments between two parties without the need for a middle man is one aspect while leveraging blockchain technology to minimize transaction and processing fees for banks is another. Of course, cryptocurrencies have their disadvantages too. This includes issues of tax evasion, money laundering, and other illicit online activities where anonymity is a dire ingredient in solicitous and fraudulent activities. Read this Term around. Its peak market cap was in December of 2017, where it was valued at over $14 billion. However, since then it has come down to just over $5 billion at the turn of the year. It has been growing steadily since April, having reached a low of around $2.5 billion.
coinmarketcap.com
IOTA is currently traded on several major exchanges with the company planning on adding more in the future. Binance, Bitfinex, Coinone, OKEx, and Exrates are the ones that carry the coin at this moment.
MAny believe that IOTA’s technical value is not truly reflected in the current monetary valuation as it is still a concept that is to be fully realised. There are aspects of it which can be improved in the future as the Internet of Things fulfills its potential. Therefore, there is a lot of potential for the network to go further.
IOTA has a native wallet, the IOTA GUI Client. This wallet can be installed on a user’s desktop or as a mobile app. There is also an option for a paper wallet, which adds an extra layer of security.
Scandals and Controversy
On the whole, IOTA has not endured much in the way of scandals. However, there are still some aspects to consider and highlight in terms of controversy.
In January of this year, the wallets of some users were emptied by individuals operating malicious online seed generators. There were also Github wallets that were hacked, but this is (unfortunately) a fairly common incident in the cryptosphere.
Another aspect that’s already been mentioned is IOTA’s controversial relationship with Microsoft. It was initially suggested that the companies were in a partnership but it later emerged that the two had no formal working relationship, and that Microsoft was merely a participant in this case. It is unclear whether this was just misunderstanding by the media or deliberate misleading by IOTA.
There have also been some accusations of bullying and intimidation by certain factions of their team according to a Financial Times article, which claimed that IOTA does not take kindly to criticism. This can even be seen by their failed relationship with TheNextWeb, which was highlighted by IOTA’s official tweet:
