IoT ➞ IOTA .
Internet of things or IoT is a concept that has burst forcefully into the technological and digital world. Internet of things is the digital interconnection of everyday objects through “the network”. The objects are connected by means of sensors , which measure what happens in our environment and send it to the Internet. So the most insignificant object can become ” a connected and intelligent thing “.
The main idea of IoT (Internet of things) is that the Internet reaches all kinds of things , not just tablets, mobile phones, smartphones, etc. Therefore, through IoT all devices can be smart , being able to command and receive information .
The exponential growth of the IoT led to the idea of creating IOTA, the cryptocurrency for the Internet of things . IOTA has a disruptive technology, Tangle , which is the essence of this virtual currency and replaces Blockchain .
IOTA, the Internet cryptocurrency of things
The IOTA cryptocurrency was born in 2014 before the irruption of the Internet of things . The information that IoT provides is huge and much of that information is not only valuable to the owner of the data . Thus, the IOTA digital currency allows IoT companies to market information generated in an open market (B2B). We can say, therefore, that the cryptocurrency was created as the ” currency of the IoT world “.
The Internet of Things generates an infinity of data that can be monetized through IOTA . For example, a home automation company sells statistical information to an air conditioning company to optimize the energy consumed according to the habits of its customers. Therefore, IOTA enables synergies that are beneficial for all parties : customers and companies that market the information.
IOTA is considered a third generation cryptocurrency . That is, it has characteristics that make it unique compared to other virtual currencies. If Blockchain is the technology behind most cryptocurrencies, Tangle is the technology of IOTA. Tangle is a new protocol that brings unique qualities to IOTA: infinite scalability, zero commissions, fast and secure transactions …
The architecture of IOTA and the non-existence of commissions benefit the payments of little amount. Therefore, the digital currency is perfect for the micro-transactions produced in the IoT ecosystem .
Tangle, the implicit IOTA technology
Tangle is the technology behind IOTA. This new protocol replaces Blockchain, which was previously the only alternative for cryptocurrencies. We can say thatTangle is a distributed accounting book without blocks, scalable and light(it can be used from any device, Smartphone, laptop …).
Its main development is that its consensus is no longer decoupled . That is, the user and mining (confirmation of operations) are no longer different entities. The operation of Tangle is as follows:
To make a transaction in IOTA (sending money), the user who makes the shipment must confirm two other transactions . These confirmations are made through a “work test” of low difficulty, that is, a series of mathematical problems accessible to any digital device (computer, tablet or mobile). Therefore, the confirmation is made by the users themselves and mining is not necessary .
These are the benefits Tangle brings to the cryptocurrency:
- Scalability . Each transaction requires the confirmation of two other transactions. For this reason, more transactions can be verified as the number of users using the network grows. Thus, with IOTA the confirmation times are slower when the network is small and almost instantaneous when the number of users is very large (totally contrary to Blockchain).
- Quickly . Against more transactions, faster confirmation.
- Simplicity . Anyone with a Smartphone can perform an operation in IOTA and at the same time the two confirmations.
- Free . The confirmation made by the users themselves eliminates the mining commissions.
- Decentralization . Although the objective of digital currencies is to be decentralized, a large part of mining is centralized in large companies. IOTA does not have mining, so the cryptocurrency is totally decentralized.
- Security . Despite the simplicity and non-existence of mining, the Tangle system is verified and safe.
- Data transfer . Tangle liquidates transactions, but also can store and transfer data. That is, Tangle transfers the data produced by IoT from one device to another and then makes the settlement through IOTA.
- Other applications . This secure and simple data transmission means that Tangle can be developed in other areas. For example, in the electronic voting sector, it is taking its first steps.
IOTA quote and position with respect to other cryptocurrencies
On June 13, 2017, IOTA began trading at a price of $ 0.526. Until December 2 the cryptocurrency grew to $ 1.42, but its true explosion began then. On December 8, its price climbed to $ 5.02 (almost 400% compared to 6 days before). During those days the cryptocurrency rose to fourth place in the capitalization ranking of the cryptocurrency market .
The price scale of those days was due to the agreement of the IOTA Foundation with important multinationals . We refer to companies such as Microsoft, Samsung, Fujitsu or Volkswagen. The agreement consists of the development of a platform that allows the purchase and sale of data of connected devices.
The exponential growth of the Internet of Things has driven the development of a specific cryptocurrency for that sector. Its Tangle technology makes it different from the other digital currencies that use blockchain. In the near future, many of the things that require accounting and are scalable can take advantage of the benefits of IOTA