Cryptocurrency IOTA, also known as Internet of Things has huge potential, which some professionals predicting it to become the fastest growing market in the next couple of years.
Although there are some obstacles that IOTA have to overcome, they hope that in just a couple of years all online devices will interconnect and all machines will communicate with each other. However; one major obstacle that they have to overcome is the sheer number of devices, yet the cryptocurrency market is the best market to do this.
So how does IOTA stand out from its competition? So far, all cryptocurrencies have been based on blockchain, which nearly all are connected in some way to Bitcoin or Ethereum. The current blockchains are not able to do a large number of transactions per second whilst providing a stable infrastructure and run on a lightweight hardware.
IOTA however; goes beyond blockchain, and is the first cryptocurrency that actually provides the whole ecosystem based on blockless blockchain. They provide efficient, secure, lightweight real time micro-transactions without fees, something that no other virtual currency can do, automatically making it stand out from the others.
Instead of being based on a blockchain, it is based on a Tangle, which retain the blockchain features of the distributed ledger and secure transactions, but does not work with blocks. Each transaction will then form a new block, which is then verified. This means that no blockchain technology can match IOTA’s, because users and validators are in the same Tangle.
Another reason that IOTA could go much further than other cryptocurrencies is the fact that there is no limit for scaling. This is the main problem facing cryptocurrencies that are based on blockchain. In theory, the IOTA network could become indefinitely scalable with zero costs, because of the aforementioned fact that every transaction verifies two new transactions in the network.
This is completely revolutionary and means that IOTA is quickly spreading. Investors can see the potential, which means that it could quickly overtake Bitcoin and Ethereum. What are your views on this virtual currency? Would you risk investing?
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