This consumes only a few electricity not as much as consumed in real Proof of work Bitcoin mining.Ī Transaction will be clear only if he clears the pending 2 transactions which we called TIPS and after the successful process it will be reached to B. Means let say, A has initiated a transaction to send this to B, in that case, A has to do some proof of work mechanism which will auto pick two previous transactions of the network. To confirm any transaction and to be added in the ledger will require clearing 2 previous transactions. Here directed means something which is only moving in one direction and Acyclic means no direction starts from one will come back to the same and Graph means the node is pointing to others.įrom the below graph you can see how a network of transactions has been created and for reference, I am referring to node as the transaction.Įvery new unconfirmed transaction initiated in the network call TIPS in the network. IOTA works on Directed Acyclic Graph (DAG) protocols and IOTA calls this Tangle. IOTA is filling that gap of Scalability and having the ability to scale up to infinite as the actual user on the network will get increases. Getting use of any network in the Internet of things will require to be Scalable as the user increases. That is why it is not well suited for future millions or billions of transactions per second. Whoever miner is able to clear that transaction will get the reward or incentives from the block transaction fees.īut this verification of the blocks will require consensus and this makes the process very slow as multiple nodes are waiting to approve that blocks. To verify any transaction in the legacy Blockchain network requires either Proof of Stacks or Proof works ( POW vs POS) to be done by the miner. IOTA is not using Blockchain technology, where the number of blocks will be added sequentially in the long-chain public ledger to get any transactions confirm. What makes this IOTA network free to use and how this network would be Scalable will discuss one by one.

IOTA has a total supply of around 2.7 Billion and all coins are already been created as there will be no miners and no mining happens on the IOTA network. IOTA is a distributed ledger technology that is open for everyone to use as it is fully open source. People also discuss MIOTA where 1 MIOTA =1 Million IOTA. IOTA also helps to process any transactions on the network without paying any transaction fees which makes this best suits for Micro-Payment.Īs I said IOTA also owns its own network Cryptocurrency which people call IOTA coin and this is the smallest unit that works on the network. How Tangle and IOTA works will discuss later in the guide. Hence IOTA has eliminated the concept of Blockchain technology and introduced a Directed Acyclic Graph which calls Tangle in the IOTA network. The current Blockchain network requires mining and Proof of work to process any transactions on the network which restricts this to be scalable in the future.Ĭurrent Bitcoin has the most scalability of up to 7 transactions per second, which are not enough for the future internet of things as there will be billions of transactions per second in the future. It is mainly focused to solve the Blockchain scalability issues and Micro-payment supports on a decentralized platform. The main vision behind its creation is to support machine to the machine economy, which helps in the future when more systems start communicating with each other. IOTA is a new revolutionary data transfer and payment settlement layer for the internet of things. It is currently handled by a German nonprofit organization IOTA foundation, which is lead by David Sonstebo and Dominik Scheiner as the co-chairman of the board. IOTA was first launched in ICO in the year 2015 and it raised around 3000 BTC which to worth around $0.5 Billion and by the end of 2017 its total market capitalization reached up to $4 Billion. My View on IOTA Cryptocurrency Future? What is IOTA or IOTA coin?.

Future of iota 2018