What is IOTA?
IOTA (traded as MIOTA) is a cryptocurrency designed for the IoT (Internet of Things).
How does IOTA work?
The tech that makes IOTA possible is known as “The Tangle”. Compared to Bitcoin, which uses blockchain architecture for maintaining its ledger, IOTA uses the ‘Tangle’ which is a Directed Acyclic Graph - this is known as a DAG. Scalability and zero transaction costs are possible by coupling the act of making a transaction and validation of transactions. Simply, the sender in a transaction performs both the act of making a transaction and transaction validation. This means that dedicated miners are not required and those making the transactions aka the users are the only people who can effect the system. The speed of the network also increases as more and more users make transactions on The Tangle. Combined, this eliminates the need for users to pay ‘miners’ for doing the proof of work as users are actually doing it themselves - this means there are no fees required to make a transaction.
What could IOTA be used for?
As IOTA is built for the Internet of Things, it could theoretically interact with any device connected to the internet. This is what makes it so exciting. For example, it could deliver adaptive lighting-system in street lights, homes, or factories to reduce wastage. IOTA also recently partnered with international refugee organisation Refunite to build a digital identity system to help the organisation's operation and their goal of family reunion of refugees. All cars will eventually be connected to the internet, a sensor in your car could deliver toll-gate payments using IOTA. If data is being shared and it needs to be done quickly, and cheaply, IOTA is perfectly placed to be the solution and as you can see there is a wide range of applications and use case scenarios.
What are the main benefits of IOTA?
- Scalability and efficiency - the more users there are the quicker the network runs
- Decentralised - dedicated miners don't have the power
- Modular
- Zero transaction costs
- IOTA can facilitate offline transactions (using technology such as Bluetooth LE, Lemonbeat, LPWAN or Zigbee) - great for retail
Where can I buy IOTA?
IOTA are currently recommending that people buy MIOTA through Bitfinex - they also provide the following guide which includes their referral code:
"You can now buy IOTA at Bitfinex! To recieve a 10% discount on your trading fees for 1 month, sign up using this link: https://www.bitfinex.com/?refcode=Tj4A8yUUDB
Step 1: Create an account using an account name, your e-mail and a secure password
Step 2: Insert this referral code for reduced trading fees: Tj4A8yUUDB
Step 3: Create account and verify your e-mail
Step 4: Once logged in, select 'Bitcoin' under balances and then 'Deposit'
Step 5: Send your Bitcoin to the address provided and wait for it to confirm and be shown in your balance
Step 6: Once confirmed, use the order form to place a bid for IOTA
It is important to note that IOTA is listed on Bitfinex in Miota units (1 Miota = 1,000,000 iota)"
Where can I find out more about the IOTA project?
You can find out more about the project on the IOTA website.