IOTA is an open source technology that allows the exchange of information or values such as cryptocurrencies, and that was developed for the Internet of Things (IOT).
In this case we are not facing a traditional blockchain. IOTA uses its own technology (The Tangle). In addition, it is a non-profit initiative that has certain characteristics, as we will see in this article.
Origin and history of IOTA
The IOTA journey began in 2015, by the founders Sergey Ivancheglo, Serguei Popov, David Sønstebø and Dominik Schiener. Their ultimate aspiration was to create a fully decentralized network that did not charge commissions.
Over time they had an expert coordinator who, through the “milestones”, validated the transactions. In this way, the aim was to avoid attacks on the network.
It is supervised by the IOTA Foundation, in charge of developing its technology.
It manages the IOTA ecosystem and is located in Germany. On the other hand, it is not for profit and its creation was financed only with cryptocurrencies. In this way, in 2017 it obtained 100 million dollars in virtual currency.
It has two governing bodies. On the one hand, the board of directors, which directs the foundation and sets its priorities. On the other hand, the supervisory board, who are experts who supervise externally. At the same time, it collaborates with governments, companies and NGOs.
Next, let’s see some of its main characteristics:
- Its own architecture is based on mathematics. Specifically, the Directed Acyclic Graph (DAG). This was a breakthrough in computer science.
- The funds are kept in the proprietary technology, The Tangle. To access it, you must enter a “seed”, which consists of an 81-character code that is a combination of letters and the number 9.
- They have their own portfolio, “Trinity,” which was developed by the foundation itself. This wallet generates the security or seed code. It is recommended to keep a paper copy as a precaution.
Iota, the currency of IOTA
The cryptocurrency is called «Iota».
Let’s see some of its characteristics:
- There is a fixed supply of Iotas that does not vary over time. This amount was established at the beginning of the platform’s operation.
- No cryptocurrencies were created for the foundation or the developers. To launch it, users donated 5% of their Iotas.
- It has a system for naming the different units. In this way, the smallest is an Iota, 1,000 Iotas are a Kiloiota, and so on, until reaching the largest unit: the Petaiota.
Iota and Ether
The Iota / Ether pair is a way of showing the rate of this cryptocurrency based on the larger one, Ether. In this way, we can know how many Ethers an Iota costs. This pair of currencies has very active dynamics and, in turn, high volatility.
This pair of cryptocurrencies thus becomes an important attraction for active traders. However, it is not interesting for those who are more conservative.
Also, this cryptocurrency can be bought and sold on various platforms apart from your own.