IOTA $IOTA

IOTA is an innovative open-source distributed ledger designed for the Internet of Things (IoT). Unlike traditional cryptocurrencies, IOTA operates without a blockchain, instead utilizing its unique quantum-proof protocol known as the Tangle. The project's standout features include zero transaction fees, unlimited scalability, rapid transactions, and secure data transfers. IOTA primarily aims to serve as the backbone of the IoT, solving many of the challenges associated with blockchain technology.

Transaction Process

IOTA is a unique cryptocurrency that doesn't require miners to process transactions, nor does it impose transaction fees. However, it does necessitate some computational power for submitting a transaction, making it an ideal currency and distributed communication protocol for machines in the IoT ecosystem.

Addressing Blockchain Limitations

The primary objective of IOTA is to confront and resolve the significant problems associated with blockchain technology. One of the main issues is that as a blockchain grows, it becomes slower, more expensive, and more restrictive for fund transfers. This is a problem seen in prominent cryptocurrencies like Bitcoin and Ethereum.

Size and Scalability

Another concern with blockchain technology is the size. As more blocks are added to the chain, it becomes longer, and fewer computers are able to mine it. For instance, the chain lengths of Bitcoin and Ethereum are over 150GB. A tenfold increase in this size would mean very few computers could mine it, leading to relative centralization. IOTA, with its Tangle technology, overcomes these limitations, offering infinite scalability and fast transactions.