The decentralized cryptocurrency Internet of Things Token, also known as IOTA, is showing great promise as experts predict that it will become the fastest growing market in the next few years.
The goal is for all online devices and machines to be communicating with each other in a few years’ time. However, at the moment there is still one major obstacle to overcome and that is the large number of devices required for the connection. IOTA definitely still has a long way to go, but experts show promising measures to make this easier.
How does IOTA differ from its competition. All cryptocurrencies are currently based on blockchain and almost all of them are linked to Bitcoin or Ethereum in some way. IOTA goes beyond the blockchain and is the first cryptocurrency that actually provides the entire ecosystem on the basis of the blockless blockchain. That is, it is not based on a blockchain, but rather on a tangle that retains all the functions of secure transactions, but unlike blockchain, it does not work in blocks. This means that no blockchain technology can compete with IOTA’s because users and validators are in the same tangle.
Another reason why investors see a lot of potential in IOTA is the fact that the cryptocurrency has no scaling limit. This is the main problem with cryptocurrencies based on blockchain. In theory, cryptodaily reports that IOTA’s network could become infinitely scalable at no cost. And that’s only because each transaction it creates is checking two new other transactions on the network.
This is completely new to the world of cryptocurrencies and the main reason IOTA is spreading so quickly. Can you risk investing in the currency?