IOTA represents an innovative distributed ledger technology (DLT) with a distinctive architecture and an open-source toolkit designed for individuals, enterprises, and institutions engaging with Web3. It is built on a directed acyclic graph (DAG) known as the Tangle, which can be envisioned as a multidimensional blockchain. This platform facilitates the decentralized exchange of data and value through direct and secure transfers, which are both executed and permanently recorded on the network.
To dive deeper into this project, you can explore our comprehensive analysis of IOTA.
Alongside its staging network, Shimmer, IOTA aims to create a secure and permissionless infrastructure that can fuel the economy of the future. It encourages the development of decentralized applications by providing automated trust via Ethereum-compatible smart contracts, a cutting-edge consensus algorithm, and well-calibrated incentives.
IOTA offers the tools to build and manage custom Layer 2 (EVM) chains, deploy smart contracts, mint unique native tokens and NFTs, and introduce digital identities for users.
Set to launch in 2024, IOTA 2.0 will be an update to the protocol that redesigns IOTA’s framework to achieve complete decentralization. You can find more details about it here.
What Is the IOTA Foundation?
Established in 2017, the IOTA Foundation is a non-profit charitable organization based in Berlin, Germany, making it one of the pioneers in the crypto sphere. It is responsible for developing the IOTA protocol and guiding open-source governance to bring the technology to a stage of production readiness. Dominik Schiener is the Co-founder and Chairman of the organization.
One of the IOTA Foundation's current projects involves building infrastructure to represent physical assets as digital tokens. The aim is to link the tangible and digital realms, transforming illiquid assets into liquid ones that are easily tradable, thereby opening up new economic possibilities.
Two organizations are instrumental in promoting IOTA adoption and expanding its ecosystem of partners and creators. The Tangle Ecosystem Association (TEA), a Swiss non-profit, provides grants and funding to ecosystem initiatives, collaborations, partners, third-party integrations, and creators. Meanwhile, the IOTA Ecosystem DLT Foundation, located in Abu Dhabi, UAE, is notable as the first DLT foundation to be registered with the local regulatory authorities.
What Makes IOTA Unique?
IOTA sets itself apart in the DLT arena with its groundbreaking architecture and distinctive features. It utilizes the Tangle, a directed acyclic graph (DAG), which allows transactions to be processed concurrently, effectively mitigating the typical bottlenecks associated with traditional blockchain designs. This enhances both scalability and operational efficiency. The ability of the Tangle to support the simultaneous addition of blocks, thanks to its DAG structure, enables ongoing and parallel transaction processing. This efficient use of computational resources is crucial for managing large transaction volumes.
Another notable aspect of IOTA is its elimination of the need for external validators or miners, which removes the requirement for token-based transaction fees. This unique approach ensures that transactions on the IOTA network are not only economical but also protected from potential manipulation, facilitating seamless and secure transactions. %qe% %as% The total supply of the IOTA token stands at 4,600,000,000 IOTAs. The smallest unit of IOTA is known as "micros," with six decimal places, bringing the total supply to 4,600,000,000,000,000 micros.
How Is the IOTA Network Secured?
The IOTA 2.0 protocol upgrade introduces a strong validator and committee selection process that ensures network security and defends against malicious actions using a staking-based consensus mechanism. IOTA 2.0 implements committee-based consensus, where the selection is determined by staked values to prevent potential attacks. State reversals are safeguarded by conflicting opinion chains and a supermajority consensus. For access security, the protocol uses token-generated Mana along with the Scheduler, which prevents spam by requiring tokens for block issuance without the introduction of fees.
Where Can You Buy IOTA (MIOTA)?
IOTA can be found on numerous exchanges. Many opt to purchase IOTA on platforms like Binance, Bitfinex, and OKX. The project indicates that a variety of trading pairs are available, connecting the token with Bitcoin, Ethereum, stablecoins, and fiat currencies such as the Japanese yen, euro, pound, and dollar. You can learn more about fiat on-ramps here.
