IOTA has fundamentally reengineered distributed ledger technology, enabling the secure exchange of both value and data, without any fees.
How Does IOTA Work?
IOTA has proposed a different data structure termed Tangle to store and manage numeric representations in a unique manner. It allows IOTA to overcome Bitcoin’s scalability issue by removing the topographical hurdles of using a blockchain. The tokens are pre-mined like XRP, and the transactions are validated using Tangle, a Decentralised Acyclic Graph (DAG). In simpler terms, it’s a network of non-sequential nodes which allows each node to be connected to several other nodes in sort of a ‘tangle’.
Benefits of IOTA
Since it uses its proprietary distributed ledger called Tangle instead of traditional blockchain, it offers some unique benefits:
Zero Fee
Unlike other cryptocurrencies, the network doesn’t charge any transaction fee. Whether you are sending $100,000 or a single penny, you will receive the same amount. There are no deductions.
Highly Scalable
The distributed ledger called Tangle has been designed and engineered in such an innovative way that more traffic on the network means faster transaction settlement.
Quick Transactions
Although it isn’t as fast as some of the other more established cryptocurrencies, it still brings swift transaction times. You don’t need to wait too long for verification.
Low Resource Hungry
Since Tangle isn’t precisely a conventional blockchain that requires Proof of Work, there is no need for powerful computing equipment, making processing affordable and environment-friendly.
Versatile Technology
It isn’t just money that you can send using the IOTA network but anything that holds value, including data and information. Tangle keeps the data tamper-proof to ensure the network’s integrity at all costs.
Decentralised
While it doesn’t rely on a blockchain, its distributed ledger Tangle is still a decentralized platform. This means that no central authority has absolute control over the network or transactions.
Ambitious Vision
It aims to bring all the digital devices together through smart cities, digital identity, and global trade creating a seamless network of machines that makes our lives much easier.
Is IOTA Safe?
IOTA uses a non-sequential distributed ledger. Once a transaction has been verified, it’s impossible for the system or any external interference to roll the progress back and make any changes. And the more traffic the network has, the more secure it becomes. It has built-in immutability, which is next to impossible to compromise, if not impossible. Apart from that, the network uses cryptographic encryption for all the activity and interaction to discourage interference and keep your data and information as secure as possible.
Fees & Expenses
It doesn’t have a blockchain, and there are no miners. It uses a decentralized distributed ledger where each new transaction validates the previous two. This means that the Tangle network doesn’t have to spend resources to verify transactions as users on the network do it for them. This doesn’t only solve the huge scalability problem but results in zero transaction charges. Using the Tangle network doesn’t cost you any fee. It doesn’t matter if you’re sending a million dollars or a cent, the recipient will receive the exact amount without any deductions.
However, if you are going to purchase IOTA tokens from cryptocurrency exchanges or trading platforms, they will charge you a standard fee. The percentage of the cost depends on a wide range of factors, including your country of residence, amount of tokens, and pricing structure.
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Dislcaimer
this news and reviews blogs are only to educate, inform and deliver information to the public and is not an investment advice. Nothing should be taken as an offer to buy, sell or hold any cryptocurrency
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