Internet of Things (IoT) It might become the fastest growing market in next couple years but the more important thing is that the development in related areas is interconnecting. Since IOTA has been released, we gained the whole new perspective not only for IoT, but for Industry 4.0 itself.
The recent boom in the cryptocurrency market proved one more time that decentralization is a real thing and our society will get to that point sooner . For a long time I believed that blockchain is a revolutionary system that will change our lives, starting from cryptocurrency and changing the old banking system. When I heard about IOTA I realized that there is no end and even blockchain won't rule forever.
Using smart watch and collect data from our morning run is what we experience today, but in couple years there will be interconnected every single device we use and all machines will communicate to each other.
Since we imagine such a world with billions of devices, machines and humans that are communicating with each other, we are facing a huge problem with actual infrastructure and hardware/software standards.
The latest tech development that we can demonstrate on this very clearly is a cryptocurrency market.
IOTA is a new cryptocurrency that focused on Machine-2-Machine (M2M) transactions. The main purpose of IOTA is to serve the machine economy by enabling feeless M2M (Machine-to-Machine) payments.
IOTA goes beyond blockchain. It is the first cryptocurrency that provides the whole ecosystem based on blockless blockchain.
IOTA provide efficient, secure, lightweight, real time micro-transactions without fees. It is open-source, decentralized cryptocurrency, engineered specifically for Internet of Things, its real-time micro transactions and providing ecosystem that is ready and flexible for scale.
We have 3 reasons why is IOTA revolucionary
-Zero transaction costs
-Potential for indefinite scalability
-Offline transactions
Tangle, the core innovation of IOTA
IOTA is often consider as an alternative coin (altcoin), but the truth is that IOTA is not just an altcoin, it is an extension of blockchain ecosystem. IOTA goes beyond blockchain. IOTA is based on Tangle instead of blockchain.
Tangle vs. Blockchain
With simple words we would say, that Tangle retain the blockchain features of the distributed ledger and secure transactions, but does not work with blocks. Instead of blocks (regular blockchain), Tangle uses the form of a Directed Acyclic Graph (DAG).
A traditional blockchain technology works like this:
Various transactions are bundled in each block and after that they can be verified by miners. That means that with increase of transaction there will be more job for miners. What we experienced so far with Bitcoin (and Etherium as well), that also means increase of transaction fees.
A Tangle works like this:
In the Tangle, each transaction forms a new block and it is verified by itself. To be able proceed this verification it has to first verify two randomly chosen transactions in the network.
IOTA’s architecture is inherently decentralized on a level that no blockchain can match, due to the fact that users and validators are one and the same in Tangle.
Almost like perpetum-mobile, right? Of course there is a cost of every transaction, but the cost is “to verify other transactions”. The idea behind is very clear: IOTA creates self-sustainable economy that is based on demand. That's why we talk that Tangle run with zero-cost transactions.
There is no limit for scaling. The problem that we face right now with cryptocurrencies (based on blockchain) is scalability.
every new transaction verifies two new transactions in the network. One more and more people join and send transaction.
A Tangle brings solution for scalability with zero cost, that is revolutionary!
Imagine the whole world with ability to communicate. As far we were considering smart things as a devices that interconnect human communications. But we need a different perspective. There will be soon more machines than humans! We need to be able to speak with machines and we need to provide a network for machines to communicate with another machines (devices).
We aren’t talking just about Internet of Things (IoT), now we are talking about Internet of Everything (IoE).
The interconnectivity is the key for our new economy. With interconnectivity comes incredible huge amount of data that devices send and receive every seconds.
To take full benefit from the IoT and IoE we have to find a way how to connect the billions of cyber-physical systems together. The network we set up has to gain our trust.
IOTA developed a protocol on which the machines can communicate via other channels, such as Bluetooth, Z-wave, ZigBee or LoRa. The future of connectivity might lie beyond the Internet itself.
thank you
