IOTA

IOTA is a cryptocurrency designed to enable fee-less microtransactions for the Internet of Things (“IOT”). The key focus of IOTA is to enable machine-to-machine transactions, the idea that machines would be interacting directly with one and other without human intervention. The absence of transaction fee is one key feature of IOTA.
Share:
Price
Basic
Announcement Date:
2014-05-01
Initial release:
2016-07-11
Hash function:
Curl
Smart Contract Support:
No
Consensus Mechanism:
Tangle
IOTA101

What is IOTA?

IOTA is a cryptocurrency designed to enable fee-less microtransactions for the Internet of Things (“IOT”). The key focus of IOTA is to enable machine-to-machine transactions, the idea that machines would be interacting directly with one and other without human intervention. The absence of transaction fee is one key feature of IOTA.

How does IOTA work?

Strictly speaking IOTA is not a blockchain.  It utilizes a technology known as Tangle, which is different from blockchain. If you make a transaction you are validating two randomly selected transactions and therefore by taking part in the network, you speed it up. In IOTA, there is no mining, no transaction fees and you can send as little as 1 IOTA.

IOTA uses ‘exclusively quantum resistant cryptographic algorithms’ which are immune to this brute force attack (unlike current blockchain projects). Furthermore the Tangle decreases impact of a Quantum consensus attack by 1 million times.

Given the volume of transactions happening on IOTA at the current stage, an attacker could very easily amass 33% of the hashpower of the network. To mitigate this risk, there is currently a special node called Coordinator which mediates transactions. In other words, at this stage IOTA is not fully decentralised yet. The Coordinator is run by Iota Foundation, its main purpose is to protect the network until it grows strong enough to sustain against a large scale attack from those who own GPUs.

Currently the IOTA network is being ran by the Coordinator – making it not yet effectively a decentralised network.

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