IOTA: the next generation of Blockchain

19/02/2018 0 By crypto-age

According to the most, Blockchain is the best technology with the widest potential of diffusion in the coming years. So, why a crypto currency project should choose to rely on a different technology? The answer lies in the target that IOTA aims to achieve.

A deepening on Iota can certainly be of great interest. Infact now this is the crypto project not based on blockchain technology with the greatest capitalization. The technology involved is a DLT (Distributed Ledger Technology) just like blockchain – the DLT par excellence – but differs from this in some fundamental points.

According to the most, Blockchain is the best technology with the widest potential of diffusion in the coming years. So, why a crypto should choose to rely on a different technology? The answer lies in the target that IOTA aims to achieve.

Project Objective

This cryptocurrency, in fact, unlike bitcoin, does not want to be just a system for exchanging value. As suggested by the name, IOTa wants to deal with the Internet of Things that is the connection of domestic objects through a wi-fi connection and with which, through programs, it is possible to interact in various ways.

Thus, this project will allow, besides commanding remotely a domestic object, some special features. As an example, in addition to switching on or off a light bulb, the IOTA protocol could report the energy consumption and directly pay the electricity bill by itself.

It is easy to understand that this is a very innovative project. However, it is applicable only to small objects that do not require powerful hardware.

From this, the choice to use a different protocol called Tangle.

A different protocol: Tangle

The main difference with the Bitcoin blockchain, necessary to make the Iota protocol much smarter, is that there are no miners. Moreover, all nodes have an equivalent value, which means all nodes can issue and validate transactions. Specifically, each node (i.e. each object connected to the tangle network) when issuing a transaction proceeds backwards and validates two single transactions already present within the blocks of the blockchain.

The underlying idea is very interesting but certainly not completely persuasive: in particular, this type of protocol guarantees speed and lightness of the system but does not guarantee the same security level.

In addition, those who hold IOTA currency often have difficulties with the specific wallet, for both synchronization and security, especially for some users who rely on unsafe online platforms to generate their seeds.

Conclusion

IOTA certainly represents an excellent project for 2018. This for the excellent development team and the basic idea that in the near future could make everyday life easier. Good auspicious comes from the important partnerships that this project continues to formalize. Obviously, important updates necessary to solve some existing problem could really represent the turning point.

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