In a world where every new cryptocurrency is looking to improve on the existing blockchain technology, it is indeed refreshing to find one that went back to the drawing table, launching its product on an entirely different platform. IOTA is a breath of fresh air, and it provides some interesting solutions. Here is everything you need to know about the new kid breaking records “off the block”:
When the blockchain was introduced, it was a revolutionary innovation that promised (and delivered) faster, cheaper and more scalable transactions than the system in use at the time. After a few years, however, transaction fees on the blockchain are not as low as they used to be; transactions are not so fast anymore—with confirmations taking hours in some cases, and the system itself is not infinitely scalable. Simply put, the blockchain was a groundbreaking innovation when it was launched, but over time, it showed drawbacks that prevent it from being the general platform for all cryptocurrencies.
IOTA provides secure payments and communications between devices on the Internet of Things (IoT). The network was built on a distributed ledger architecture called the Tangle, a DAG-based technology, and it is the first cryptocurrency that wasn’t built using the blockchain. The IOTA platform is also the first cryptocurrency platform with offline transactions, zero-cost transactions, and infinite scalability. Additionally, IOTA confirms transactions very quickly, and the network can handle an unlimited number of transactions simultaneously.
The company was launched in 2016 and has notable partnership agreements with Microsoft, Volkswagen, Innogy, Deutsche Telekom, and Fujitsu.
IOTA is managed by the IOTA foundation, a team consisting of founders—David Sønstebø, Dominik Schiener, Sergey Ivancheglo, Dr. Serguei Popov, and a host of other experts. Per Lind is on the team; he has previous work relationships with Sony Ericson, Mercedes Benz, Aston Martin, Ford, and Virgin Media among many others.
He is joined by John Halamka, Professor of International Healthcare Innovation at Harvard Medical School; Regine Haschka Helmer, a start-up consultant with considerable experience building up new businesses to industry standard; Carsten Stöcker (Ph.D.), a physicist at Innogy, with previous work experience at Accenture, and the German Aerospace Center. Carsten is also a member of the Future Council Network on Blockchain at the World Economic Forum (WEF).
The IOTA foundation is filled with many other such specialists and industry leaders.
As a whole, the growth of the cryptocurrency market augurs well for IOTA. With a market share of just about 2% of the total cryptocurrency market cap, there is room enough for IOTA to grow. Furthermore, the market segment being targeted by IOTA, the internet of things industry, is a burgeoning industry, with many reports predicting that it will grow into a trillion-dollar industry over the next 5 years.
IOTA’s present (and future) customer base is the world population of internet users, and when the IoT movement gets going, IOTA will become quite formidable; as a company and as a cryptocurrency.
IOTA’s primary focus is to provide a communications and payment platform for the Internet of Things industry, and in that regard, they have no rival. In the cryptocurrency sphere proper, they have a tech that is far ahead of any other in the market, and within 6 months of its release, IOTA’s token is already the 6th biggest cryptocurrency in the world by market cap (as at December 2017).
The business plan for IOTA is simple: get lots of tech companies to implant IoT chips in their products, and as a result, build the prominence and importance of IOTA: the platform that allows and oversees the communications and transactions between the different chips.
Simply put, IOTA is the backbone behind the Internet of Things; Using IOTA, all devices with IoT-capability can be used to provide services that are instantaneously tradable on an open market, providing the companies that produce these devices with an entirely new business-to-business model.
For example, your smart fridge records that you don’t have certain items you always have handy, say milk and butter. The fridge company shares that data with your grocery store for a fee, and as you wheel past the milk aisle in the store, a message is sent to your phone, reminding you that you need to get milk, and afterwards, butter. This is the potential held by the Internet of Things, and in the heart of all the company-to-company exchanges, you have IOTA.
Since IOTA’s cryptocurrency token, MIOTA was launched in June 2017, it has grown by over 500%. As a result, early investors enjoyed the dual benefit of making back their investments in multiple folds and seeing how far the company (and its cryptocurrency) can go in the near future.
New investors can be encouraged by the fact that the platform has yet to reach critical mass, but despite that, it was still able to secure collaborations with some of the biggest companies in the world.
IOTA is an open-source technology, they have a GitHub page, and they have a community on Slack. They also have lots of well-known and respected cryptocurrency and business experts on their founding team and in their foundation.
In addition to these, IOTA has been working with respectable corporations like Microsoft, Volkswagen, and many others. As a result, it is safe to say the company and the cryptocurrency have a clear use case and are adequately transparent.
Likelihood of Critical Mass
The IOTA platform was launched in 2016 and their cryptocurrency token was released mid-2017. As a result, the platform is relatively new and does not have enough users to guarantee self-sustainable growth.
However, IOTA aims to facilitate the IoT industry, meaning that the IoT market IS their market, and the bigger the IoT industry grows, the more users adopt their services, the better for IOTA. Given how fast the IoT industry is growing, it is safe to say that IOTA will get enough users to achieve critical mass sooner rather than later.
In conclusion, IOTA presents a unique opportunity. It has a superior tech when compared to all other cryptocurrencies; it has a well-defined use case with a dedicated market segment; it has a solid team backed by well-experienced advisors, and its token is already doing well on the market. It would not be wise to bet against this company.
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Disclaimer: The information contained herein is not intended to be a source of advice and the information and/or documents contained in this website do not constitute investment advice.