IOTA is a distributed ledger protocol launched in 2015, focused on being useful for the emerging m2m economy of Internet-of-Things (IoT), data integrity, micro-/nano- payments. IOTA has transactions costing no fees, has no scaling limitations, and decentralized consensus where users are also validators. However, some sort of central intelligence is needed for a IOTA implementation in order to control transactions.
• Launched: June 11, 2016
• Total coin supply: 2,779,530,283,277,761
• Algorithm: Proof of Work (PoW) using a version of SHA-3
• Block time/reward: No blocks, verify two transactions to submit your own transaction
Describing itself as the “backbone of the IoT”, IOTA looks to solve some of the problems facing the IoT such as microtransactions and security concerns. Offering business-to-business and machine-to-machine solutions to simplify payments and invoicing through a modular model that allows for interconnectivity and inter-operability, as well as creating an ecosystem in which technological resources can be traded as ‘services’ on an open market.
IOTA does not use a linear mathematical model for their “chain” calculation, but a “Directed acyclic graph” model, which “looks” more like a mesh rather than a chain. Thus, some say that IOTA is not a blockchain product per definition. On the other hand, a term like “blocktangle” is not common and thus not used. Additionally, as said, by using the tangle, IOTA is not as distributed and “free” as other Blockchain implementations.
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