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Description of IOTA (IOT)

IOTA Origin

Release Date: June 11, 206.

IOTA, deciphered as the Internet of Things Application is a cryptocurrency technology capable of facilitating transactions between various Internet of Things devices.

IOTA Functionality

IOTA, contrary to what people might think is not exactly a Blockchain. Instead of transactions being added to blocks and then verified by miners, the IOTA network requires transactions to be submitted to the IOTA ledger, after which, users are required to verify two previous transactions.

This verification technique means that there is no central authoritative ledger, nor is there a need for miners. Devices situated within the IOTA network verify other transactions on a random basis. The verification system behind IOTA is known as the Directed Acyclic Graph (DAG). Crypto enthusiasts, as well as IOTA developers, however, call it tangle.

IOTA’s end goal is to become the go to platform for machine-to-machine transactions. The main argument stemming from IOTA’s founders is that in order for Internet of Things to become an efficient process, devices connected to the network must allocated resources in an effective manner. What this means is that devices connected to the network must acquire bandwidth, storage, electricity when needed most, and sell it when there is minimal need.

In the IOTA system, transactions are verified through a web of verifications. Each transaction executed is linked to two previous transactions that were verified by the initial one. This does wonders in terms of solving common Blockchain scalability issues.

If the IOTA project is successful, it will become a serious contender for classical Blockchain transactions and ecosystems.