There is nothing relaxing than an evening walk across the street and getting to listen to what people are talking about. Occasionally, I do that to relax my mind and have a glimpse of the sunset at the coffee shop across the street. What are people talking about nowadays?
People usually have a lot to talk about. Their day at work, how they are afraid of going back home due to annoying partners and of course about the economy. They always have something to say about how the dollar is trading and the many changes taking place in the market.
During the many moments of having an evening coffee, I have had people talk about the digital currency. They say of how technology and knowledge combination has come to change how people will transact and do business in the future. Do they have an idea of what it is all about?
It is amazing at how much people at the joint know about cryptocurrency. Through, Rose, the waiter does not have an idea, many of the people who visit there not only know of the coin but they have used or owned the currency, this is a good thing for the digital world, right?
Yes, with all the information out here, it is a good thing when an investor hears that people are taking time to research and inform themselves about the change in the currency. In the cause of the talk, what is being talked a lot is the bitcoin. guess there is a lot of information about the coin.
One of the customers always brags of how he has been trading the bitcoin and has seen return in his investment over the period he has been trading. What came across my mind during the conversation is the fact that it has been difficult to trade the coin due to the transaction fee.
When I got home, I got curious to know about the complaints. I found out it is true when it comes to trading the bitcoin, the transaction fee and the blockchain has been a hindrance to many transactions that concern the bitcoin. I wanted to know more about what can be done about this.
Well, I found a solution. Over my research on the internet and other platforms, I came across the IOTA coin. Something exciting that made me write and want to enlighten you and the customer who was complaining. If you are interested, read along and know more about the amazing coin.
What is IOTA Coin?
Talk of the solution to bitcoin problems, this is what the coin is all about. It basically means the internet of things application. It is a coin that was developed to create a payment system that is faster, secure, cheaper and scalable.
From the onset of the coin release, it was meant to be a token system free of the dead weight of the blockchain. The most amazing thing about the coin is that it is not only limited to the financial transactions, it is also into data movement from one machine to another, cool right?
It is a coin that is meant to do things in the cryptocurrency world in a unique way. one of the special ways in which it does that is not using the blockchain. It has a unique directed acrylic graph called the tangle that does all the transactions.
Just like any other digital currency, the IOTA is not left behind, that trade their currency in the exchange market and has a value of $ 5. Though not much, it is a good start for any coin. They also have their coin called the MIOTA. to know more, let us know about the origin.
Origin of the IOTA coin
All along as the bitcoin and other currencies where trading, a group of developers were silent somewhere following keenly on how the cryptocurrency is surfacing. The developers are Sergey Ivancheglo, David Sombesto, Serguel Popov and Dominic Schreier.
They had to organize themselves according to their specialization so, Popov developed the math that is involved in the making of the coin while Scheiner oversaw writing the code. When all was done, Sonbesto oversaw overseeing the whole project come to be.
In December 2015, IOTA coin was launched. It was entirely managed by the IOTA foundation which is grounded in Germany. Their dream came to a reality as their project came to seal all the loophole that has been associated with the blockchain way of doing transactions.
Over the years, the coin has been changing for the better with necessary management implementations being made to make sure the coin is fit to compete with the big fish in the crypto industry and thanks to the good work of the developers, the coin has gained popularity.
The good thing about the coin is that it is not limiting itself to the financial transactions only. It has come with a way in which data will be sent from one machine to the other at a faster way with no charges. If well embraced, it will be a new way of sending data from person to person.
How is mining done?
I know this is the question ringing in your mind. That is because if you are used to the bitcoin, you must know that for a new coin to be generated, mining must take place. Mining is an expensive process and not any investor can take part in the mining process.
It involves a lot of input in terms of time, energy and capital and not to mention the amount of power used by your pc to mine. You will have to install special equipment for you to be able to mine the bitcoin in a profitable way.
The developers of the IOTA coin saw all this, that is why they came up with a coin that does not need any mining. This is all thanks to the tangled system. With the acyclic graph, all the transactions need to do is reach a consensus based on the web verification.
In simple terms, I IOTA, there are no miners required. Intend, the system uses everybody in the platform to verify and mine the coin. If you are an IOTA owner and you want to send the coin, you will have to verify two other people’s transactions before your transaction is verified.
By using this process, the transaction for the block verified itself. Since there are no miners in the system, it means that the power used will be less and no specialized equipment will be required for you to verify the transactions hence making the whole process less expensive.
It is also engaging the users. Yes, if you have a chance to own the IOTA coin, then you will be part of the mining process since for you to exchange the coin, you too will be needed to verify two transactions in the web for your transaction to be approved.
What about IOTA transaction fee?
This is the sweetest part of the coin that the customer needs to know. Since there is no mining of the coin, there is no transaction fee that is charged. That is why the IOTA protocol is used to process micropayments which are not possible when it comes to the other digital coins.
All along people have been complaining about the high transaction fee involved in the trading the digital currency especially the bitcoin. IOTA coin is the convenient currency that is made to make sure it solves that issue of transaction payment.
About the Speed
Unlike in the bitcoin where there is a specific time for your transaction to be verified, in IOTA, there is no specific time. You might be wondering why, right.? Well, it depends on the following factors;
- Proof of Work action
Now, you are an IOTA owner and you want to have your transaction verified, it is stated that you must verify two other transactions for yours to go through, right? Well in the process, before you start approving the transactions, there is Pow you must perform before you proceed.
Now, for you to finish the Pow, it will depend on how fast your computer is. That is because the faster your computer is, the faster your proof of work will be and the faster you will be approved to go ahead and verify the two transactions.
- The number of people using the system
As mentioned, there must be people active in the system for transactions to be verified. That means there must be people available in the system verifying transactions for chances of your transaction to be verified. Unfortunate the number of people available is always unreliable.
Unfortunately, nobody can predict how the network will be reliable or unreliable. With that said, with IOTA coin, it is hard to predict the speed of a transaction since you don’t know the network speed and reliability at a specific time.
Advantages of the IOTTA coin
- Free transaction
This will excite every coin owner. That is because it is becoming expensive to transact other cryptocurrencies due to the high transaction fee that is involved during the exchange. With IOTA, that is taken care of.
- Unlimited scaling
That means there is no limit to the number of transactions that can be done and verified in a day. With the tangled system, all they have you do is to each to a consensus and transaction is verified. That means many transactions can take place at one time.
- Can process any data
The IOTA coin id not limited to financial transactions only. You can transact even data. That will involve even institutions which have data that needs to be transferred from one machine to another. That makes it a multi-purpose coin.
- Instant transactions in the future
The coin is still young. There is a lot of changes taking place to make sure the coin is better and more functioning. In the future they have made plans of seeing instant verification of transactions without delay, with that, more IOTA coin will be transacted in a day.
- Members participation
There is no mining in IOTA coin. It requires every owner of the coin participation to mine and verifies the transaction. What that means is that every coin owner is valued and his or her participation is required for the success of the coin.
Disadvantages of IOTA coin
The coin is new and it is still undergoing a lot of changes. That means many people are hesitant about investing in the coin because they are uncertain about the future of the coin. With that, fewer people are investing in the coin.
Unlike the bitcoin which is decentralized, the IOTA coin is centralized and controlled from one place. With this, it is open to control and manipulation from the users. With people looking for freedom and amnesty, they will opt for another coin.
Yes, with all the developments and changes that are taking place to make the coin better, there are chances that loopholes may occur for fraudsters and thieves to take advantage of. If that is not keenly looked at, it can result to loss of coins.
- Incomplete coin
No one wants to invest in an incomplete coin. That is because there are a lot of insanities that comes along with it. it is hard to invest in a coin that you don’t know what it has to offer and how well it is functioning.
I did my homework so that I can have concrete information next time I visit my favourite coffee joint. I may not have a solution that my fellow customer wants but I will offer the information that might give him an alternative to the bitcoin.
OITA coin is still in development stage and maybe a lot of things need to change for it to be better, one thing is for sure, the coin has a lot of good offers to watch out for. Cheap and faster transaction is what every investor wants and IOTA coin is here to offer just that.