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What Is IOTA And Why Is It So Popular?

What is IOTA and Why is it So Popular?

  • December 22, 2017

IOTA is a scalable, decentralized, modular and fee-free crypto currency. Among the features of this crypto currency, a technology called Tangle stands out.

The rise and success of Bitcoin over the years has proven that blockchain technology is a viable and real value. Nevertheless, we see that this technology has a number of problems that prevent it from being used as a comprehensive platform for cryptographic services around the world. These problems include; the issue of transaction fees for each transaction made at any given amount is a considerable problem.

What is IOTA?

The main innovation behind IOTA is called Tangle; scalable, goal-oriented and revolutionary distributed non-blockchain identity. This innovation allows assets to be transferred without any transaction fee. Thus, it becomes possible to operate in very small quantities. Instead of the global blockchain, this direct method called Tangle is used.

One of the key features of IOTA is that it allows data transfer via Tangle. IOTA offers a variety of options for the user to perform this data transfer. So the user; connect the two devices they want to transact with each other by establishing verified and secure communication channels. All data transferred via this connection via IOTA are fully verified and secured by protection protocols which make possible attacks impossible.

How Does it Work?

Tangle’s working logic is as follows: To perform an operation, users need to work on the approval of other processes. For this reason, all users who perform a transaction contribute to the security of the network. Having an open source and unique distributed ledger structure, Tangle approves each transaction or data transfer within its scope by two previous transactions, each approved by two previous transactions. Accordingly, the approval of the network becomes one of the basic characteristics of the network. This new system leaves the existing blockchain structure because the approval of the operation is not parsed from the use of the network. Also, as the number of processes increases, the system becomes faster and safer.

Is it a Good Investment?

IOTA has been rising since the news about Fujitsu and Microsoft, however with the recent official news that Bosch is making an investment on IOTA, it has gained it’s investors more than 300% in 3 months already. You can follow the current IOTA price on Coinmarkets website along with other crypto currencies.