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IOTA Crypto Explained | IOTA Beginner's Guide

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Iota is a project that some love, others love to hate. A project that has had it's ups and downs, but one that still remains at the bleeding edge of IOT-tech. But is it something that you should consider , Hello, this is "Mr.Crypt" and in this blog post I'm going to give you everything that you need to know about IOTA  .  I need to give you a disclaimer before I talk about IOTA. I am not a financial advisor , I'm just an educator and this blog post is written with the sole purpose of providing you factual information. Please contact a financial advisor if your portfolio has been killed. If you're new here, you might be feeling a little bit lost right  My name is "MrCrypt "and I am your crypto geek here at the cryptolibrarynow . I pass on the knowledge of cryptocurrencies, exchanges, DeFi, protocols, NFT'S and market analysis are just a few of the topics I tackle on the daily basis. Now enough with the intro. Let's get it on , Let's unpack "What Is" IOTA... 

What is IOTA ?

Iota is. Distributed public Ledger that was developed in order to power machine to machine to machine payments in the Internet of Things economy. Essentially, with IOTA, all of the computing devices that are embedded in machinery throughout homes, businesses and factories will be able to communicate, sending and receiving data and making feeless transactions picture the scene. You can order milk from your fridge, which is connected to a decentralized fleet of milk delivery drones, cars that interact with other cars on highways. This could all theoretically be facilitated by IOTA. They are unique not just in the IoT sector, however, but also in the cryptocurrency this is because they have done away with the blockchain but instead rely on their unique consensus method. So what is this consensus method? It's called the tangle and its the name that IOTA has designated to their dag based Ledger. So let's take a closer look at that. 

The Tangle -:

DAG is a directed acyclic graph which has a different structure from blockchain. With a blockchain, each block will come one after the other and contain information about all the blocks before it. With a DAG, however, the data structure grows increasingly complex, has more notes and transactions are added, which helps provide security. Additionally, the DAG moves in One Direction and does not look back on itself.  With the Iota tangle all of the connected nodes hold transactional data and consensus is built into the system rather than using a proof of work blockchain where consensus separated and minors are required to form a consensus. Tangle requires each participant to confirm to other transactions in order to get their own transaction confirmed. This gives us a completely decentralized and self regulating peer to peer network. This allows IOTA to remain fearless and it will always remain fearless no matter the size of the network. By eliminating minus, there is no need to pay any one directly on the network. Instead each user is paying by using a very small amount. There computing power to confirm to other transactions. So quite simply, with the iota tangle, the more activity there is on the network, the more validation takes place. Quite the opposite of how it would look on a blockchain.

Coordinator -:

Now another central piece of the IoT network has been the coordinator or Coo. This was developed in order to protect tangle in its early phase as a distributed network. You can think of this as a centralised master node that is controlled by the IOTA Foundation. The exact mechanics of  the coo is beyond the scope of this blog post but to give you a rough explanation. The coo regularly publishes zero value transactions, the performer check on the iota tangle. These transactions are called milestones that help determine the direction in which these transactions are being spun. Now, here's the rub. A transaction is only valid if it has been confirmed directly or indirectly with a milestone. So essentially the COO makes the IOTA Network a centralised one a dirty word in the crypto space. Now having said all that, things are about to change as IOTA is about to kill this coo, the developers have called it the coordicide and it is there solution to a coo free tangle. Indeed, it has always been on the agenda of the developers to eliminate group once they had a better grasp of how completely decentralized Tanglewood function.  Moving on though , IOTA has their own native token that has the ticket MIOTA  these will serve as the utility token within the IoT ecosystem. They will be used to power the microtransactions between the devices essentially an open market of devices can be created where resource usage and  transfer can be billed second by second in real time. There's a total supply of over 2 billion IOTA, and these were all  generated with a pre-mine at the Genesis transaction. This is a fixed supply and they will never be anymore Iota generated or mined and here you can actually see a genius of the iota tangle because there are no miners required to secure the network  and verify transanctions  there are no incentives for anyone to try and raise network fees by slowing the network .

Crowd Sale ICO -:

Iota did holder crowds LICO for these tokens which took place back in 2015. They were able to raise 1337 bit-coin worth roughly half $1,000,000 at the time. I know that sounds like a very small amount, but crowd sales and ICO's weren't very common in 2015. What is important to point out though is the total supply was issued in the sale and non were reserved for the Founders, developers or advisors. Something that you just don't see in the crypto space anymore, the community has also given back to the foundation in order to fund future development. 5% of this token supply was donated to the foundation. So all together a relatively harmonious token ecosystem. But how is the price fare? Well, it's been a pretty bumpy road. Like most other cryptocurrencies, Iota was swept up by the bull market in 2017 and reach dizzying highs of over $5 per iota. However, when the bull market collapse, so too did the price of IOTA , crisis have been pretty range bound over the past 6 months. Just waiting. For that old season.

IOTA Team -:

Moving swiftly on, I want to take a quick look at the team behind this project. Iota was found in 2015 by 2 entrepreneurs and a professor. David sonstebo and Dominik have found it a number of businesses in the hardware and software space. Then you have Dr Serguei popov who is a mathematics professor. He wrote the Iota white paper and is the Co author of the Tangle? All 3 of these founders serve as directors on the IOTA Foundations Board. There a host of other highly qualified individuals both on the corporate and engineering side of IOTA. All you really need to know about the broader IOTA team is that they are hard at work on the development side you can take a look at their GitHub repository. They're pushing code commits at quite a frenetic pace, always great to see. However, the business development side is something I really want to talk about . IOTA Has been one of the most active projects in the crypto space when it comes to industry partnerships that are numerous partnerships and collaborations that they have entered into, and here are some of the most interesting ones. 

IOTA Industry Partnership -:

The Government of Taipei is partnered with IOTA in order to realise it's smart city goals, a Dutch Power consortium is working with the foundation to create smart charging stations for electric cars. Volkswagen partner with IOTA in the digital car Parts initiative and more recently they passed it with priority to track food allergens and improve consumer safety. Other high profile names IOTA housing partnership with include the lights of Microsoft, Bosch, Fujitsu and Accenture. So what does all this mean? One word adoption, less use of distributed Ledger technology can only be frosted with the help of industry partners, so it's great to see IOTA taking the lead on this. Let's take a quick look at the markets for the IOTA token.

IOTA Markets -:

Iota is currently listed on a number of exchanges. The bulk of the volume appears to be on hit-BTC, although I would avoid this exchange for a number of reasons. Its also listed on the likes of binance, Bit-finex, kuobi , OX etc. Volumes appear to be pretty well spread out across these exchanges, which means that liquidity is not dependent on a singular exchange. When it comes to liquidity on each of the exchanges, they appear quite healthy. Looking at the Bitcoin iota market on binance for example, the order books are deep and the turnover is standing, so makes execution that much easier. If you post Iota, then you're probably going to want to store it in an offline wallet. There are in fact quite a few wallets that support that. Ohh can I won't going into here, but if you wanted a list of the best offline wallets, you can check out my bkog post on top hardware wallets by clicking on me. So then what do I really think about IOTA? I'm really quite optimistic about it. For one, the use of tangle is a major advantage they have over traditional block chains. Yes, it is currently monitored by the coo but coordicide will take care of that. I'm also impressed by the level of commitment that the team has towards the project and its broad divisions. Let's also not forget that they didn'' reserve any of the tokens in the crowd sale. This team is actively pushing code on the engineering side and forming some pivotal partnerships on the business development side. They really are lighting the way for distributed Ledger technology in an interconnected future. Yet are the challenges? 

IOTA Issues -:

Well, they have been a few issues in the past that do still linger. These include a high profile fishing of wallet seeds and subsequent iota theft, as well as an academic paper that found hash collision in the algorithm. Then of course we have the deterioration in the price of IOTA, which does not bode well for those who continue to huddele. That said, there are very few out coins of any denomination that would be spared vagaries of the bear market. 

That is all for today's blog-post . If you plan on sticking around for more interesting blogpost like this please pay a visit to cryptolibrarynow by clicking on the link below -: 

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My last Blogpost was on -: Ravencoin Overview .


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