IOTA (MIOTA) has been climbing the crypto-coin ranks. At the time of writing, it’s the 7th most valuable digital currency. Currently worth $10.3 billion, it’s just behind Cardano (ADA) – which is worth about $0.3 billion more.
While its price has sunk about 27 percent lower in the last week, IOTA is up 230 percent from one month ago.
These kinds of gains have been drawing a lot of buzz, but IOTA’s technology is still not widely known.
What kind of cryptocurrency is IOTA (MIOTA)?
If it isn’t this coin’s explosive growth that’s caught your attention, it’s probably the unique nature of this blockchain technology. IOTA (MIOTA) is endeavoring to become the official cryptocurrency of the Internet of Things (IoT). The IoT refers to the vast worldwide network of connected devices we use every day.
Think refrigerators, cars, espresso machines, and medical devices. All of these gadgets will eventually communicate with each other. Moreover, they will execute machine-to-machine (m2m) transactions amongst themselves.
Is IOTA (MIOTA) Really the Cryptocurrency for the Internet of Things (IoT)?
This cryptocurrency is far from being incorporated into our everyday lives at this point in time. When the impending IoT boom eventually happens, IOTA will already have the micropayment infrastructure and funding in place to hit the ground running.
IOTA has also resolved the obvious scalability issue. There is no main ledger – all users need to do to perform a transaction is verify two previous transactions. The network’s name is Tangle, and it’s pretty impressive. All the connected devices randomly perform transaction verifications. It’s called the Directed Acyclic Graph (DAG), but Tangle is what you’ll hear.
Because of Tangle’s unique structure, there are no transaction fees. The devices do the verifications, so there are also no miners needed.
On top of all that, every connected device will be providing data through their micropayments. The potential of this data is massive, especially as the IoT becomes more integrated in our day-to-day lives.
Disclaimer: This article should not be taken as, and is not intended to provide, investment advice. Please conduct your own thorough research before investing in any cryptocurrency.