IOTA – A BRIEF INTRO FOR INVESTORS
Released in June 2016, IOTA is an open-source distributed ledger technology that operates on an alternative form of distributed ledger technology known as directed acyclic graph (DAG), which IOTA has named ‘Tangle’.
- Transactions mine themselves, creating zero network transaction fees
- Users can send Masked Authenticated Messages (MAM) and other data securely across the network
- Transaction speed is inversely correlated to the number of transactions processed on Tangle, making the network faster as it continues to reach mass adoption
- Monte Carlo random generator is used to prevent fraudulent verification of transactions
- Corporate partners already include Microsoft, Cisco, and Bosch
The supply limit of about 2.8 quadrillion IOTA were all created during the genesis block and distributed via crowdsale in December 2015. There is no mining for new coins on the network and new coins will never be created.
IOTA’s Tangle is the key to infinite scalability and transaction immutability. Each transaction forms a new block which is verified on its own through verifying two previous blocks. As more transactions are made, more verifications are being made in parallel, enabling the network to operate at quicker speeds over time.
IOTA operates as a distributed public ledger where transactions are viewable across the network.
The development team is led by Serguei Popov who has a Ph.D. in mathematics. Serguei formulated the theory behind Tangle after which time Sergey Ivancheglo and Dominik Schiener programmed it into reality. There is an additional $10 million fund to incentivize developers to create new applications and product enhancements.
DAG technology is the next iteration of the blockchain, eliminating scaling issues while continuing to provide immutability and decentralization that is key to the industry. IOTA’s Tangle brings DAG to the next level for connecting the world one device at a time.
Tangle works by forcing any new transaction on the IOTA network to verify at least two previous transactions before it can be secured itself. This creates a self-verifying system with every user on the network acting as a de facto miner to complete a proof-of-work computation and verify transactions — with every transaction becoming a node in the Tangle distributed ledger.
Users complete these computations in lieu of fees, making microtransactions a reality in an environment with zero transaction fees, while also allowing for true decentralization where network power is not centred on a few large miners or stakeholders.
IOTA’s Tangle is infinitely scalable and looks to disrupt the IoT industry and allow every machine and device on the planet to communicate with one another.
HOW TO BUY IOTA
IOTA is traded in two units of measure, with 1 MIOTA equal to 1×106IOTA. Make sure to know what denomination you are purchasing to ensure accuracy with your purchase. You can use fiat currency, Bitcoin, or Ethereum on select exchanges to purchase IOTA.
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