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22 Oct 2021

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What is IOTA? – Definition, Valuation, and More
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What is IOTA? – Definition, Valuation, and More

Definition of IOTA

IOTA discusses in the blog post and IOTA’s road map. They also wrote that it develops to enable the “paradigm shift” to the Internet of things.

It simply means the cryptocurrency allows for data exchange between sensor-equipped machines that populate the Internet of things.

IOTA does not use the traditional blockchain design use by most cryptocurrencies. Instead, it develops a new Tangle platform.

And which uses the mathematical concept known as directed acyclic graphs (DAG). For its transaction, it’s valid.

And each node in the DAG Tangle must approve two previous transactions at another node. Also, it has two consequences.

First, it removes “miners” as entities to validate transactions, thereby removing a possible bottleneck when transaction speed and numbers are high.

And second, the network’s growth and speed become directly proportional to the numbers of its users.

It also does not take transaction fees and claims to take solved scaling problems, such as network delays due to block congestion, related to bitcoin

Also, IOTA use expects to simplify transactions and processes involving objects that take sensors.

A simple use case is an IOTA-enabled vending machine, which can dispense soda without the associated transaction costs and latency of bitcoin.

What Caused the Recent Spike in IOTA’s Valuation?

  • The IoTA market expects a worth of 470 billion by 2020.
  • Through IOTA Foundation, the German nonprofit behind the cryptocurrency, IOTA is the early mover in this space.
  • Also, it already partnered with companies that play the leading role in IoT, such as Cisco Systems Inc.
  • And (CSCO) and Samsung Electronics Ltd. (SSNLF) create a data marketplace that can monetize IOTA, also partnered with Innogy, an energy company.
  • We can expect that the machine wand can pay its assembly, its maintenance, its energy and also for its liability insurance by giving data, computing power, storage, and physical services to other machines.”

Also Read: What are FTX Leveraged Tokens? – Definition , Work, and More

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